PAY DAY LOANS
Payday loans are loans of a small amount, taken for a short duration of time. Payday loans are generally meant to be paid off on the next payday. Payday lenders loan out thousands of dollars every week to people who are in dire need of money. The Community Financial Service Association of America, payday loan cash advance industry extends to about $25 billion!

Payday lending is often regarded as something predatory and it is of the common belief that payday customers are being used as fodder by the money hungry payday lenders. However, the various researches undertaken throughout the years contradict the view that payday loans are predatory and the borrower is always being preyed upon. In fact, recent studies have shown borrowers preferring payday loans to other loan alternatives. The huge Annual Percentage Rate (APR), in the range of 391% and higher often makes it intriguing as to the people who opt for these loans. But studies conducted throughout the States show that people from all walks of life consider payday loan cash advance as an affordable option to meet their financial needs. The US Census report of 2000 show that 22% of the surveyed payday loan borrowers hold a bachelor's de! gree from college. More than two-thirds of the people surveyed reported an annual income of a minimum $25,555 and has a savings account. Also, 51% of the surveyed population had a retirement savings plan. Viewing the industry statement, it seems that the payday cash advance customer has more than average level of education than the general US population. A typical payday loan customer is between 25 to 40 years of age and has an annual income between $25,000 and $50,000. Also people from all walks of life, including teachers, civil servants and corporate employees considers payday loan as an efficient solution to the short term financial emergencies. Payday loan companies gives the borrower the amount of the check minus their fee (They get their money up front). Fees charged for payday loans are usually a percentage of the face value of the check or a fee charged per amount borrowed for every $50 or $100 loaned. A cash advance loan secured by a personal check - such as a payday loan - is very expensive credit. Let's say you write a personal check for $115 to! borrow $100 for up to 14 days. The check casher or a payday loan lender agrees to hold the check until your next payday. And, if you extend or roll-over the loan - say for another two to four weeks - you will pay A Fee Each Time you get a extension. Under the Truth in Lending Act, the cost of payday loans - like other types of credit - must be disclosed. Among other information, you must receive, in writing, the finance charge (a dollar amount) and the annual percentage rate or APR (the cost of credit on a yearly basis) which when you do the math can be very high. Top 10 Alternatives to Payday Loans! 1. There are other options. Consider these possibilities before choosing a payday loan: 2. When you need credit, shop carefully. Compare offers. Look for the credit offer with the lowest APR - consider a small loan from your credit union or small loan company, an advance on pay from your employer, or a loan from family or friends. 3. A cash advance on a credit card also may be a possibility, but it may have a higher interest rate than your other sources of funds: find out the terms before you decide. Also, a local community- based organization may make small business loans to individuals. 4. Compare the APR and the finance charge (which includes loan fees, interest and other types of credit costs) of credit offers to get the lowest cost. 5. Ask your creditors for more time to pay your bills. Find out what they will charge for that service - as a late charge, an additional finance charge or a higher interest rate. 6. Make a realistic budget, and figure your monthly and daily expenditures. Avoid unnecessary purchases - even small daily items. Their costs add up. 7. Also, build some savings - even small deposits can help - to avoid borrowing for emergencies, unexpected expenses or other items. For example, by putting the amount of the fee that would be paid on a typical $300 pay! day loan in a savings account for six months, you would have extra dollars available. This can give you a buffer against financial emergencies. 8. Find out if you have, or can get, overdraft protection on your checking account. If you are regularly using most or all of the funds in your account and if you make a mistake in your checking (or savings) account ledger or records, overdraft protection can help protect you from further credit problems. Find out the terms of overdraft protection. 9. If you need help working out a debt repayment plan with creditors or developing a budget. There are non-profit groups in every state that offer credit guidance to consumers. These services are available at little or no cost. Also, 10. Check with your employer, credit union or housing authority for no or low-cost credit counseling programs. If you decide you must use a payday loan, borrow only as much as you can afford to pay with your next paycheck and still have enough to make it to the next payday!