Bank Overdraft Charges Are A Main Factor To Apply For A Payday Advance

The Payday Loan industry is one that has been the subject of much scrutiny over the past several years. The media and many financial institutions like to compare it to a legalized form of loan sharking but taking a closer look, you might be surprised to learn that most people take a payday loan out simply to avoid excessive bank overdraft fees.

In fact most financial institutions charge upward of $25-$30 per overdraft item. If you have several come through at once you could wind up paying anywhere from $100-$500 at a given time. Most banks will allow their customers to overdraw simply so that they can collect these excessive fees. This is typical practice and not considered excessive at all.

A payday loan will likely cost you less than those overdraft fees from your bank and will help you find a way to repay it over a few weeks or months. They help you not only in your time of need, but over time as well. Most payday loan companies offer repayment options that are realistic, unlike your bank who will want full payment of all overdraft charges immediately.


Applying for a payday loan is relatively simple. If you have a recent paystub, a check, your most recent bank statement, and your valid photo id you can usually receive cash the same day you apply. Simply contact the payday loan company to find out what you will need to bring in with you or apply online. It is a fast and easy process. They won’t call your workplace or your references. No one will have to know that you applied for a cash advance through a payday loan company.

This method of borrowing is discreet. They won’t even disclose information to your spouse if you don’t want them to. It is your business and they will keep it that way.


Most companies have several repayment options available. At the time you take out the loan you should consult with a customer service representative to find out what these options are. They can help you decide on the repayment method that is best for you.

A payday loan is intended to be a short term loan option for those in emergency financial need. If you know that you are about to bounce checks, then consider this option. While it is a loan with a relatively high interest rate, it will cost you less then paying the overdraft fees at the bank. A payday loan is a cost effective way to get the money you need fast. Don’t let the banks convince you of anything less. A payday loan is a cost effective solution and one that will cost you less then bouncing just a few checks on your checking account.

Leave a Reply

Your email address will not be published. Required fields are marked *