Understanding the Basics of Payday Loans

We’ve all been there. It’s 3 days before pay day, and you’re totally out of money. What are you going to do? You could try borrowing money from a roommate or friend, but that could strain your relationship and make things awkward. You could, heaven forbid, borrow money from your parents, but the same consequences mentioned earlier could apply. Many people every day find themselves in quite the pickle when something like this happens to them. But there is help out there. Check City offers you the chance to receive a payday loan, which will help you get out of this situation.

Let’s first discuss what a payday loan is. A payday loan is a short-term, unsecured loan extended to a borrower from a lender. The loan is given to the borrower with the idea that they will pay it back by their next payday. Payday loans, despite the name, do not have to be connected to the borrowers’ payday, however. You can work with the lender to determine when you will need to pay back the loan.

Getting a payday loan is easy and hassle-free. Visit www.checkcity.com and fill out an online application. The people at Check City will review your application and within a short 24 hour period, the money will appear in your bank account. It’s really that simple. If you would rather take out a payday loan in one of our stores, that is also an option. Simply walk into a Check City location, fill out a personal check for the amount of money you need (plus standard fee), and walk away with cash in your hand. Check City will then cash the check on the date you specified and that is how you will pay back your loan.

In order to receive a payday loan or online payday loan, you’ll need a steady source of income, a state or federal ID, and a checking account. But with these 3 things, you are all set to receive your own payday loan.

It is important to realize that payday loans shouldn’t be used as a long-term financial solution. Payday loans should be used responsibly and just when you need money quickly for a specific reason. If you want to know more about payday loans and to see if taking out a payday loan is a good option for you, simply visit one of our Check City locations and we can give you the advice you need.

Payday loans are often the right choice because they can save you money. If you are behind on a payment, and you write a check for money you don’t have, there is a very real possibility that that check could bounce. Bounced checks can present huge problems. You can be arrested and taken into court for having a check that bounces. Your future job opportunities could be jeopardized if you have a bounced check on your record.

Avoid Bounced Check Fees

The average bounced check costs $27, and that is just the cost from the bank alone. If you have to write several checks in one day, there is a likelihood that the bank will cash the largest ones first, which could lead to some of the smaller ones bouncing. In this situation, you will only be charged more in fees from the bank and the situation will increasingly worsen.

But you have to consider the cost that the company or lender that cashed the check may charge you as well. These costs can be up to $25, if not higher.

The list goes on. If you write a bounced check to a company that reports to credit bureaus, it is likely that the late payment will show up on your credit. Bounced checks can even be reported to consumer reporting agencies. These agencies keep track of any problematic financial history you may have and can share that information with financial institutions and even businesses that accept checks. This information will stay in their system for five years. Do you really want that blemish on your record?

Overdraft Fees Can Be Costly

Another thing to think about is overdraft fees. If you withdraw money from your bank account when you don’t have any money in your account, the bank will charge you a fee. The fee continues to add up the more days pass that you don’t pay the fee. If you don’t pay the fees for 60 days, many banks will close down your account and report you to one of the above mentioned consumer reporting agencies. This information will go down with the agency and could very likely prevent you from opening up another account at a different bank.

It is important to continue to think of the consequences that could ensue if you don’t pay your debts in the time that they are due. If you are late on your rent payment for the month, your landlord could very likely quick you out of your apartment or condo. Where will you go then? There are not always going to be family or friends nearby to come save you when you’re in a bind. You need the money to pay your rent now.

Payday loans have also been proven to be helpful in scientific studies. In 2009, Professor Adair Morse of the University of Chicago Booth School of Business conducted a study to see how effective and helpful payday loans were. His findings showed that in natural disaster areas where payday loans were available, people did better financially than the people in areas where payday loans were not available. Professor Morse also found that less people in areas served by payday lenders needed to be treated for alcohol and drug addiction.

It’s easy to take out a payday loan and simply forget to pay it back. Budgeting is important in this process because it will help you to section off the money that you’ll need available to pay back your loan. At Check City, we work with each customer to devise a payment plan that works best for their individual situation. You do not have to sign for the loan until you are comfortable with the payment plan we’ve outlined with you.

Budgeting can seem daunting, but it is really not difficult. The main thing you need to remember when you’re trying to pay back your loan is to not spend money unless it is absolutely necessary. You need to have all the extra money you can spare in order to pay back your loan. This is not necessary, however, if you’ve already factored into your monthly budget enough money to cover the loan. Chances are, though, that you’ll need to make adjustments in order to successfully cover the added cost of the loan.

As stated earlier, budgeting is not hard. All you need to do is try to cut back on a few of your luxuries. For example, in order to save money, you could consider cutting back on how much you eat out at restaurants. Oftentimes, buying groceries at the store and making meals in your home can save you a lot of money. It is important to remember to have a grocery list when you go to the store; otherwise, you could end up buying lots of extra items that you don’t really need. Make a grocery list and stick to it when you’re in the store.

You could also try employing the “30 day rule.” This rule applies to when you’re about to make a purchase, such as a clothing item or a household item. So you don’t get sucked into impulsive buying, wait 30 days to buy the item. Then, before you actually buy it, think about if you still want or even need this item. This can help you to reduce the amount of items you buy without thinking it through properly.

Another way to save money is to repair your clothes instead of going out and buying new ones. If an item of clothing has a hole or is missing a button, repairing the item rather than replacing it can save you great deals of money. This is especially true if you like expensive, high-quality clothing. It can also be beneficial to not fall prey to the idea that you need to buy and have the latest fashions and trends. Try to be happy with the clothes that you have, at least for now.

Payday loans are available to you if you need them through Check City. When used responsibly, they can help you manage your money through times of financial stress. Get your payday loan through Check City today to minimize the financial stress you feel. If you’re unsure as to whether getting a payday loan is the right choice for you, come in and talk to us. We’re friendly and we want to help. Payday loans can be the next step that you need to take in order to reach financial stability.

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