Cash payday loans seem like an option for many people when they are low on cash. It especially option for people who have a bad credit rating.
A cash payday loan is when you borrow money from a person by giving him a postdated check for the amount that you borrowed plus the loan fee. The postdated check is given for the date when you expect to get your pay and expect the money to be available in your bank account. The process of getting a payday cash loan is as simple as filling out an application and writing out the postdated check for the amount.
Some cash payday loans require you to pay the fee upfront cash payday loans typically have the repayment period of 10 to 14 days. After this duration the lender will cash the postdated check that you give him has a payment for the loan. A person also has the extension of extending the payday cash loan for an additional period of time which is called a roll over.
The problem with cash payday loans is that they are only a temporary solution to what might be a bigger problem with finance management and cash flow. It is estimated that for every person who borrows $300 on payday loans, pays more than $700 as interest. This is because while payday loans seem like a good idea to someone who needs a bit of cash quickly and easily, it’s does not quite work out like that. A person who expects to be able to pay off $300 at the end of 10 days is usually not able to do so. Rolling over the payday loan cash balance from one period of 10-14 days to another and paying the payday loan fee every time increase the balance tremendously with each subsequent extension.