Same Day Loans No Fees - How They Work

By Author: Shourya Ray Chaudhuri
Total Articles: 598
Comment this article

After the bad economic issues that have affected the world, a unique form of financial service arose. This is what we call the payday loan. This is a form of short term financing and the target group for such loans is those low income families. The premise of this loan is very easy to understand. You need money. They offer money without credit checks. They let you sign a contract and you get the money the same day you asked for it. That sounds pretty easy to absorb. The problem though is if this is actually any good in real life situations.

The premise of the same day loans no fees is that the borrower will pay the debt on the expected date which is normally when the paycheck arrives. It is equivalent of getting a cash advance. The repayment period will vary depending on how your paycheck is delivered. Is it paid for every 2 weeks, weekly or every month? That is the method the lenders use when setting up deadlines. The contract is crucial since this is an agreement between the lender and borrower that the money will be paid for in the expected date when your paycheck arrives.

If the borrower receives the money, ...
... they can head to the lender to pay directly or it can be automatically sent to the bank account with your permission. If you are not able to pay on the expected deadline, you can ask for an extension and added fees are applied. You need to pay it one way or another. Otherwise, you will be dealing with a lot of debt and the biggest problem is a lawsuit for check fraud for failure to pay the debt or evasion of debt payments. Since you signed the contract and agreed to the terms, you have no way out. It is either you pay slowly but painfully or suffers bigger costs and an appearance in court. That would be doubly embarrassing.

Be aware that these loans have a very high price tag included in it. Yes, the process is easy but like anything else, there will always be a catch. The interest rate can rise up to 15% and additional fees for late payments can rise up to 50%. This is the money making machinery of lending companies. High interests in very short periods and desperate people mean a lucrative business. The problem happens if you do not follow the rules. You have to follow them or else you will risk a lot of things and you might end up falling into a vicious cycle of paying debts and making loans.

Shourya Ray Chaudhuri, Ezine Articles Expert Author. For more information: Same Day Loans No Fees
Get more information: Emergency Loans for Unemployed