Payday Loans are not only fast and easy to get, but they can actually save customers money by helping them avoid hefty bank fees.  Most banks today automatically enroll their customers in automated overdraft programs, sometimes without the customers' knowledge.  What does this mean for the average customer who is struggling to pay the bills in today's downward spiraling economy?  It means a collection of overdraft fees, which can cost much more than fees incurred by a payday loan or cash advance.

According to a 2008 study done by the FDIC entitled FDIC Study of Bank Overdraft Programs, automated overdraft usage fees ranged from $10 to $38 and of the 462 banks studied, the median fee was $27.  However, these fees can accumulate and result in much larger fees as Kelly Spradlin, 33, experienced.  Spradlin regularly checks her account balance via phone to avoid overdrawing her account; however she was still hit with overdraft fees totaling $400 within a few months.  While living on a tight budget, these fees kept her from being able to pay future bills.  Banks are quickly earning a profit through these overdraft fees and taking advantage of young and low-income people.  If you are looking for a cheaper alternative to bank overdraft fees, try this site:  http://www.aaapaydaycash.com/.

Of the banks surveyed by the FDIC, an estimated $1.97 billion in fees was earned in 2006, which represented 74% of their overall service charges.  According to Michael Moebs, economist and CEO of Moebs Services consulting firm, banks collected a record $45.6 billion in overdraft fees from consumers in 2007.  With current bank policies it is difficult for consumers to avoid overdrawing their accounts and accumulating fees.

Payday loans are simply short term loans that get people through rough times when funds are tight.  They allow customers to avoid accumulating bank overdraft fees while they are temporarily in need of money.  Payday loans are a fast easy way to get out of financial trouble and if paid bank in a timely manner they can help prevent against high bank overdraft fees.