Whether You Call It a Pay Check or a Pay Cheque, Sometimes It Isn’t Enough

People in different areas of Canada prefer the American spelling pay check. Others prefer the European version, pay cheque. No matter how you spell it, sometimes it just isn’t big enough to cover every thing that needs to be done before the next one comes along. This is where a cash advance, or payday loan, can cover the shortfall and improve one’s situation.

Unplanned expenses can crop up at any time. Sick time from work can cause a shortage in available funds to cover all the bills. Whether the pay check is smaller than normal or the expenses are higher, for short term money difficulties a payday loan may be the best solution.

A payday loan normally allows one to acquire cash to use as needed with a minimum amount of paperwork and no credit check being run. The amounts available are limited by the average amount of one’s pay cheque. Payday lenders will normally not loan more than can be covered by one pay check on the next payday.

If your pay cheque is not enough to cover the full debt and meet the current needs, there is an option to pay a minimum payment to keep the loan in good standing.  The minimum payment required is to pay the full amount of fees and $10 from the principal balance. Of course, it is usually better to pay the debt in full, even if one must use too much of this pay cheque to do so and must take out another before getting paid again.

Whereas banks generally require a credit check, collateral and a large sum to be borrowed for an extended time so that they can make the money off the interest, payday lenders do not normally require a credit check, never require collateral, and will loan small amounts for short terms at a set fee. The reason these are known as payday loans is that it is expected for one to pay off the loan with his/her next pay check.

Payday lenders have received a lot of publicity recently over the fees they charge for their services. These fees are often translated into an APR interest rate that is extremely high. The truth, however, is that the fee for loaning one money until his/her next pay cheque is the same whether the term is one week or one month. The only way that these incredible interest rates could possibly be accurate would be for the loan to be rolled over multiple times with no payment on the principle. That is something that is not normally allowed to happen and is in the process of being legislated by provincial governments. Clients are required to make at least a minimum payment that covers the fees and a portion of the principle amount out of each pay check.

No matter what part of Canada one is from, whether the wage slip is called a pay check or a pay cheque, there are times when the amount falls short and some help is needed to make it through to the next one. A payday loan can provide the added funds to allow one to make it through.