About New Cash Loans: Short-Term Financial Help

Today's poor economy has been rough on everyone, some more than others.

The nation's credit crunch has left millions of Americans struggling, trying to find a way to make ends meet. These consumers might be fortunate enough to just get by with enough funds to cover their fixed monthly expenses.

What happens, though, when the unexpected occurs? Cars break down. Children get sick. Roofs begin to leak.

For those who are just getting by, these unexpected expenses can hit their finances hard.

Fortunately, for these individuals, there is hope. A short-term loan in the form of a payday loan can provide that temporary financial lifeline to help consumers get through a rough financial patch.

How Payday Loans Can Help

Payday loans provide consumers with access to quick cash loans, typically within a 24-hour period. These loans are intended to serve as short-term loans and often require the borrower to repay the loan within 14 to 30 days, or by the borrower's next payday.

The benefits of payday loans include their speed and convenience. While applying for other types of loans often requires filling out a significant amount of paperwork and waiting for days to get approval, payday loans generally are approved in a matter of minutes.

How to Apply for a Payday Loan

A borrower has two options when it comes to securing a payday loan.

The first option involves visiting a local payday loan business where the borrower provides a personal check made out for the borrowed amount plus finance charges. In exchange, the lender then provides the borrower with instant cash while holding on to the borrower's check until the loan's repayment deadline.

The second option allows the borrower to apply for a payday loan online. To acquire a payday loan online, the borrower provides the lender with his or her bank account information. The lender then deposits the loan directly into the borrower's bank account.

How to Qualify for a Payday Loan

In addition to the speed and convenience of payday loans, another perks is a borrower does not need to have good credit to qualify in most cases. However, there are some requirements that borrower's do need to meet.

Most payday lenders will require the following:

• The borrower must receive a regular income through employment or a government program, such as social security or welfare.
• If the borrower is employed, he or she must earn at least $1,000 per month. If the borrower receives income from a government program, he or she must receive at least $800 per month.
• The borrower must be at least 18 years old and be able to prove American citizenship.
• The borrower must have an active savings or checking account with the possibility for direct deposit.

How to Repay a Payday Loan

Unlike other types of loans that are repaid with a series of payments, a borrower should plan to repay a payday loan in one lump sum.

When it comes to repaying the loan, the borrower does have a few options:

• The borrower can repay the lender directly and thereby redeem the original check.
• The borrower can allow the lender to cash the check and obtain the funds from the borrower's checking account.
• If the borrower wishes to extend the loan, he or she can pay a finance charge and roll the loan over until the next payday.