Payday Loan | Cash Advance

      When the amount of money withdrawn from a bank account exceeds the amount of available money in the account, the excess is known as overdraft, and the account is said to be overdrawn. The overdraft is an amount agreed on by both the customer and the bank, by which his bank account may be overdrawn. Generally, the customer will be charged a fee for the overdraft facility and another fee when the overdraft occurs. Often, this fee is a high percentage of the total value of the overdraft.
      Overdraft protection is a financial service offered by many banks in the United States. This protection plan pays dues sent to a customers account when there is not enough money in the account to pay. Overdraft protection allows for fees to be paid as opposed to bouncing, which may cause the user to have a higher fee. This protection covers ATM withdrawals, purchases made with a debit card, electronic transfers, and checks.

Visit http://en.wikipedia.org/wiki/Overdraft for more information about overdrafts and overdraft protection.

     Payday loans, also known as cash advancements, are small short term loans used to help a borrower between paydays. These loans are usually high interest loans with interest rates up to 400-900%. They lend without regard to credit history. Because these loans can be very costly after interest is applied, many people turn to alternative practices. These alternatives include, but are not limited to, credit unions, credit payment plans, overdraft protection, community assistance, consumer loans, or direct loans from family or friends.

     Credit unions are a popular alternative. They are non profit organizations that attempt to solve people’s debt problems by making sure that the owners and users of credit unions are the same people. Credit unions are a great alternative because they charge lower interest rates than banks and payday loaners. Overdraft protection is another popular alternative. With this option, the company pays for any bounced checks of ATM transactions exceeding your balance. This is a type of loan, and the company expects to be paid back within a set time with interest.

Check out http://search.dmoz.org/cgi-bin/search?search=payday+loans for more alternatives to payday loans.