Gas prices took their biggest one day leap in one day. Relief is expected after Labor Day. This was the biggest leap in 18 months. Labor Day was just that- labor at the gas pump. Payday loans stayed steady, though.
Hurricane Isaac wreaked havoc over the Gulf Coast and the gas pumps. Higher gas prices have hit the residents of Louisiana, Mississippi, Illinois, Indiana and Ohio. The national average price for a gallon of gas jumped 5 cents in one day. This trend of rising gas prices will cause havoc to our paychecks. Five cents a gallon adds up fast and the price of gas is getting higher as we speak.
Isaac is the name of the storm that shut down the refineries on the Gulf Coast. These refineries are losing about 1.3 million barrels a day. This loss of refining capacity has caused gas prices to raise more than 14 cents a gallon in the Midwestern states. Naturally, drivers were angry and confused about the stretch in their paychecks to pay for gas. It costs more than $20 for only 5 gallons.
Gas prices are supposed to fall again after Labor Day but the full impact of Isaac is not yet known. Pump prices were on the rise before Isaac hit and now the country is losing our gas supply due to the refinery shut downs. If gas prices rose 40 cents from July to August before the storm, then we are in for a disaster at the pump as a result of the storm. Our paychecks will feel the jump in price as we pay over $20 for 4 or 5 gallons of gas.
How are we going to cope? Paying for gas will leave us with less money for other necessities. More cash is essential. A cash advance or a payday loan is a cautionary measure. A cash advance should only be used for small emergencies that your paycheck cannot cover this pay period. The repayment of this type of loan is at the next pay period.
A cash advance or a payday loan is a short term loan of usually $50 to $1000. This short term loan differs from a long term loan in interest rates, fees and APRs. For a short term, loan these rates are higher, but the borrower actually ends up paying less. A short term loan is easy to obtain, too. There is no credit check, the borrower only has to be 18, employed and have an active bank account.
To find a cash advance or a payday loan, the borrower needs to find a licensed, insured payday lender. The best payday lenders are found online. A payday lender will fully disclose all the terms, interests, fees and APRs of the loan to the borrower before any loan documents are signed. A licensed and insured payday lender will set a pre-arranged repayment date by your next pay period. The insured payday lender will debit the borrowers account for the full amount of the loan including all fees, interest and APRs on that date. If the borrower is unable to have the full amount at that time, the payday lender will refinance. The borrower will not have an endless cycle of debt like the endless cycle of rising gas prices. End the gas price rise?? No but possibly the debt cycle.
