Peace of Mind and Rapid Relief for Unexpected Financial Dilemmas
The release of these funds is dependent upon the borrower's particular circumstances, the time when the loan request was submitted and the payday loan provider's specific requirements. Borrowers can receive the funds in as short as one hour's time or, at the most, by the next business day. Provided by licensed lenders, the loans are repaid once borrowers receive their next paychecks, usually within two weeks. The Consumer Federation of America completed a survey of 100 online payday loan providers. The results demonstrated that, although available loan amounts ranged from $200 to $2500, most providers offered $500 loans to borrowers. In difficult financial times, $500 can be the difference between missing a mortgage payment, having one's utilities turned off or providing for one's family during difficult financial situations.
In California, payday loans help those who need money to pay essential bills, but have fallen behind due to an unforeseen event, such as the lack of income from an injured spouse. Someone involved in an automobile accident, for instance, might not have the money on hand to pay for repairs. Without transportation to get to work and earn money, the situation only worsens. Payday loans relieve people of stress and provide them with a way to make ends meet until their next paycheck arrives. Payday loans provide a lifeline to people with neither the collateral nor the credit to seek out a traditional, short-term bank loan. The Department of Corporations released statistics citing that nearly 1 million people in California received payday loans in 2006. With such widespread need, many individuals find reassurance in having an option available during a time of financial uncertainty.
Although there are some requirements, payday loans are not difficult to receive. Though each loan provider has its own specific prerequisites, in most cases, borrowers are required to provide valid identification, proof of a checking account and a verifiable source of income. When someone applies for a payday loan, they receive the funds rather quickly. When payday arrives, the lender is reimbursed through a withdrawal from the borrower's checking account for the amount of the loan, as well as interest fees. For those who fulfill the basic requirements, this process helps them to get back on their feet with no red tape, no judgmental loan officers and no fear of being declined.
In California, over 400 companies are licensed by the state to offer payday loans. These providers follow the state's regulations in order to make emergency funds accessible to so many hardworking people, who otherwise would have few options in finding help to tide them over until their next payday. To those who need it, this is a small price to pay for the assurance that they will not face financial ruin waiting for their next paychecks to arrive. California payday loans give hardworking people the opportunity and stability to navigate through their toughest times. When facing unexpected and unfortunate financial situations, it gives so many people peace of mind that help is available through payday loans.