Pay day cash loans are often referred to as bridging loans because they are the perfect way to bridge the gap during periods when cash is scarce. Typical times when people may be short of cash is at the end of month and at the end of the year, after the holidays. If people have supplemental income from the state, these checks often arrive at the beginning of the month, leaving the end of the month short. Even if a paycheck is due in a week, it can be tough if there's no food in the house, or the utility bill has to be paid. If the person has poor credit, it can be a hard thing to find someone willing to lend them money. That's where pay day loans come in as a reasonable alternative to bridge the gap.
Filling the End of the Month Gap
Having access to a payday loan at the end of the month is an easy way to bring forward cash from your next paycheck into a time period when it is most needed. The payday loan is a very convenient way to borrow money because it is very fast and the application is very easy. You can even do it online and have the money in the account the next day. As long as you know you will have the money to pay it back on the next paycheck cycle, it can really help to bridge the end of the month.
Reasons to Fill the Gap for the New Year
After paying for Christmas, you may find your accounts somewhat depleted. You may also be trying to settle debts for the new year, but using a 401K loan makes no sense that late in the year. You will end up being taxed for it the very next year, and have to pay out between 20 and 30% of the loan back to Uncle Sam. If the personal debt you are trying to pay to someone is less than $600, a payday loan can be a way to bring that cash into the current year, while not having to incur taxes. It can also help you with shortfalls in your budget due to the holiday extravaganza.