With the credit crunch biting hard, people on the front line with real jobs and real bills have found it increasingly difficult to cover all their weekly and monthly expenses. Traditional borrowing has been relatively simple, but in the last two years its been turned into an uphill struggle for most people. Witness the rise of cash advance services and payday loans in place of regular lending. Below we have an account from Tony who works in a auto parts factory and gives his view on how its affected him
Last month I graduated from bank loans and credit card borrowing to cash advances and although I was skeptical at first now I actually think it’s a good move. For years I existed on bank loans, borrowing whenever I was short, which seemed to be most of the time. I always seemed to be scratching around trying to make a match between payday at the factory and the cough-up day on the loan and somehow I always missed by a day or two. But I managed somehow and the truth is that if I spent an extra buck here and there in interest or penalty charges, it was okay by me, I was borrowing the money anyway. I was also a pro at providing all the information the loan company asked for every time. How come they didn’t have me on file I don’t know!
When we all spiraled into this latest recession I found it harder and harder to get a loan. They were still there but the number of questions was up and the waiting time was forever. I felt frantic whenever my phone went at home.
Then I heard this guy Andy talking on his cell-phone one day, something that we are absolutely not allowed to do on the factory floor. I asked him what was so urgent and he whispered, “I was organizing a cash advance.”
“What’s that?” I whispered putting my ears up. He explained that you can get an almost automatic loan based on the fact that you have a regular job and have a regular payday where you work. I copied down the phone number on the back of my cigarette box.
I called them that night. The last payment on my car was due in a week and there was no way I could raise the dough in time; not even my regular source would put up that fast. I was ready to say goodbye to my car for the fourth time this year.
To cut a long story short, you don’t even have to call; it’s easier to do it all online. This is how it goes: The decision about can be made the same day, sometimes even in minutes. You can get your money in 24 hours and pay it back when you get your next paycheck.
Where I was borrowing previously, from the bank, I could sometimes wait weeks for a decision. The bank also did a credit check on me every time I called. These cash advance companies often don’t require a credit check. This is excellent for people like me, who have less than perfect credit. Almost anyone can get the money they need to get out of the sticky situation they are in. I made the car payment and I’m out of jail on that. It cost me a bit more than a normal loan but I got it quicker and it probably saved me getting another negative entry on my credit file.