In USA alone the payday loans are booming. There are hundreds of people turning to them, as four times more than the previous year of 2011 and thus the total lending amount has surpassed to $1 billion mark. Payday loans are the popular choice for the cash strapped families, especially in the recessionary times when economy is challenging to them. But there are few factors which you need to be aware about these payday advances. These are unsecured cash advances and they can be only used for emergencies and for short run. The most common uses include medical bills, utilities, car repairs or other unforeseen elements.

Such loans are very quick and easy to apply for and which perhaps makes them most preferred option. But prior writing your loan amount, you should familiar yourself with the interest charges and how much you will pay back. If you read the articles in press and other news, you simply get to hear about how these loans are expensive and catch needy people to the traps. But in reality though the APR looks scary, it is relative to your loan amounts and credit term.

Most lenders let you have the cash from $100 to $1500 and for two to three weeks approximately. According to them, you pay them back on your next pay day. Because you borrow small amount of money for short period of time so the typical APR that is applied to banks and building society would not be applied to payday advances. The lending agencies charge you per $100 you borrow vary from $10 to $30. This is why the interest rates appear so large, due to the small span of time for which you can keep the money.

But there are some people who cannot handle these finances properly and therefore they find their selves in bigger problems later. They pay for the interest rates only and avoiding the principle amount, take another loan to cover that amount. It drives up your costs dramatically.

When you use these loans sensibly and only stick the purpose of having loans related to the emergencies, then you handle them easily and make the best out of them. The best part of the loan is that you opt out the amount only you need and set a date to repay them. By budgeting carefully and ensuring that you can pay back everything what you have borrowed, on or before your next pay day you will be in better position.

Payday loans are easily available online with many payday lenders. You can search over them, can review their past records or can read their blog sections to get information about them. Payday advances are great if you know how to make the best use of them.