| Short term loans, like payday loans, are a growing | | | | that these cash loans are expensive is a given. At the |
| business, boosted by the effects of the economic | | | | same time, the need for payday loans cannot be |
| slowdown. With its popularity, lending companies now | | | | denied, as there will always be a time when an |
| compete for a greater share of the market. To | | | | individual will be in a financial squeeze. A financial |
| encourage people to try payday loans, these | | | | squeeze happens only when there is no money for an |
| companies and other private merchants offer minimal | | | | urgent need, say a forgotten bill to be paid or an |
| eligibility requirements and easy application processes | | | | unexpected car repair. If the individual has the money, |
| for almost all their loan packages. A borrower is not | | | | then the overdue bill or the car repair is not a problem. |
| required to file any documents or information in person | | | | Therefore, the problem is not the need, but the |
| in order to complete a loan application. In addition, there | | | | unavailability of the money. |
| are no processing fees, just minimal charges. In most | | | | That is where payday loans come in. The cost may |
| cases, there is also no credit checks involved with the | | | | be high, but everything has its cost, and it is up to the |
| application. | | | | individual to judge whether the cost is justifiable. It |
| With some lenders, a pay day loan will be received by | | | | would be unthinkable if a payday loan is used for a |
| the borrower in as little as two hours, with the funds | | | | capricious expense, say buying an expensive item or |
| deposited in the borrower's bank account. Time during | | | | treating friends to a night out. It will be another matter if |
| a bad financial situation is a precious commodity, and | | | | the pay day loan will be used to avoid a greater |
| knowing this, private lending firms are taking special | | | | expense, say to avoid overdraft charges, late |
| care to make the transaction simple and easy. An | | | | payment fees, or utility reconnection charges. |
| application form will take only moments to accomplish | | | | The requirements for a pay day loan are standard. |
| and lenders will stamp their approval or rejection in a | | | | The borrower should be an Australian resident, of legal |
| matter of minutes. Individuals with bad or no credit | | | | age, employed, and with a bank account. Lenders will |
| history can apply for a payday loan which is a regular | | | | require a minimum period of employment with the |
| item in a lender's loan portfolio. Short term cash loans | | | | present employer and a minimum regular income. |
| like payday loans are available online, even loan | | | | Income is broadly defined to include not only salaries |
| amounts up to $1500 are available. | | | | and wages, but also alimonies, child support, pensions, |
| Paying back a pay day loans is as simple as getting | | | | and similar income types. And either a checking or |
| one. On the next payday, which usually is the selected | | | | savings account will do, but must be active for a |
| due date, the loan will be repaid through an automatic | | | | minimum number of months immediately preceding. |
| deduction from the borrower's bank account. The fact | | | | |