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Payday loans: solutions for hard times

Making ends meet can be difficult and challenging in today's unpredictable and volatile economy but there is the option of a payday loan to help individuals and families who need some extra cash to help them through a difficult time or unforeseen expenses.

Most everyone has financial difficulties from time to time and it is embarrassing to ask friends and family for help when their finances are stretched and they need a few hundred dollars to pay for medical procedures or car repairs. Payday loans are short term loans for persons who have unexpected expenses, which are granted regardless of credit history and with a fast or even instantaneous approval process.

Payday loans can be obtained online without any need to meet with loan officers or to submit numerous documents. Individuals can often fill out an online form then the lending company will make a phone call to ensure their current employment status and then they can receive their payday loan within a matter of hours. The money is deposited directly into the borrower's bank account and can be withdrawn immediately. The benefits of payday loans include a fast approval process and the omission of a lengthy credit history review or meeting with bank representatives. Other benefits include the debtor's freedom to do with the loan what they wish.

The lending institution does not ask for any collateral and does not dictate as to what the loan must be used for by the borrower. Timely repayment can help improve a borrower's credit score but tardiness can increase the interest rate. An inability to pay is not too much of a problem because most states have legislation that protects consumers from harassing phone calls and unethical behavior of lenders. Pawn shops also offer payday loans but collateral is needed in order to be granted a loan. This can be jewelry, electronic equipment, firearms or anything else of value.

The benefits of pawn shop payday loans are more flexible repayment schedules and lower interest rates. Repayment does not reflect on the borrower's credit history but nonpayment will not involve any legal action but only the sale of the collateral items by the pawn shop. Payday loans are a good option for people who don't wish to or cannot borrow money from their friends and family and who only need a small amount which can be repaid within a week or two. The benefits are convenience, privacy and speed.