Bank finance articles and tips

Payday lenders are constantly depicted as preying on the poor and less fortunate citizens in America. Politicians say these companies are predatory, and desire to steal from those who have nowhere to turn but a payday loan.

Payday loans are meant to give short term financial assistance to men and women who need a small amount of money to carry them through until their next paycheck. These cash advances usually range from $200- $1,000 and last only two to four weeks, or until the client's next payday. Traditionally, these loans are helpful when a financial emergency arises, such as auto troubles or a high medical bill. There are no stipulations on how you spend the money from a payday loan, so these financial emergencies are not the only reason that people take out one of these loans. Nowadays, people use these loans for every day expenses that just seem too costly at the time, such as new shoes for the children, a grocery bill, a new appliance, or cash for a night out.

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If you are living paycheck to paycheck, you are not alone. A recent study by the Financial Industry Regulatory Authority Investor Education Foundation shows that over half of all Americans living paycheck to paycheck.

Of the 55 percent of Americans in a paycheck to paycheck financial situation, a great number are spending more than they are making and therefore incurring debt.

60 percent of all Americans do not have sufficient savings to provide for unexpected emergencies, leaving them to turn to short term small amount loans to make ends meet when an unexpected situation arises.