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Category Archives: Finance

Tricks to Consider Before Getting Payday Loan

To begin with you will want to take into consideration if you qualify. Before you assume that you are even eligible to receive a payday loan you must meet certain qualifications. Most facilities require that you have a job and pay stub. You also must make a certain amount of money per month to get a loan. You will also need a driver license or ID. There are other requirements companies may have depending upon which company you choose to go to. Some companies may require a credit check and require that you have fair or decent credit.
It is important to call each facility and ask them what they need from you so that you are able to provide the proper documentation so you can get approved.

The next thing you will need to consider about payday loans are that you are not only going to be paying your loan amount back but the majority of the time you will be paying back an extremely high interest rate as well. This is how companies that do payday loans get their profit. They will loan you a certain amount of money, but you are going to be looking at a heft amount in interest too. You need to ask yourself if it is really worth the extra amount of interest you are going to be paying back and if you might need to consider exhausting other means. If you do not have the means to pay back your payday loan plus the extra money in interest you will be paying, you should probably avoid getting one.

The last thing about payday loans you should take into consideration is if you live by a strict financial budget. If you are having to adhere to a budget and you know that you do not usually have any extra left you should avoid doing payday loans. Payday loans are for emergency situations and should be treated as just that. Many people fall into a dangerous financial trap where they take out one payday loan pay it back and then immediately take out another. This is something that should be avoided at all costs. You have to think about the repercussions of if you are not able to pay the loan back due to the fact you get ill and cannot work or there is a problem with your paycheck and you cannot get your payday loan paid back by the time it is due. When you agree to do a payday loan you must remember this is a legal binding agreement you should not take lightly. To break this agreement can have serious repercussions.

Payday Lending

It is important to learn there are solutions we can turn to in situations like this and these solutions each have a different effect. We may try really hard to save our money but sometimes things happen that our outside our control.

When a rent payment is coming up you generally try to have enough money in the bank to pay it. This can be difficult though when other things arise that same week like if your car breaks down.

You have only enough to pay off the rent but you have to fix your car in order to get to work. You consider just not paying your rent on time.

If you could wait another week then you would get your next paycheck and easily pay off your rent. The problem with doing this is landlords charge a late fee on late rent.

This is usually a percentage of your rent which translates to a substantial amount. Because you do not want to pay this fee you look to other solutions.

Another thing you can choose to do is write out checks for both bills even though you know you do not have enough money in your account to cover the costs. In doing this you hope they will be late in taking the checks to the bank.

If they wait to deposit them, you might be able to get to the bank with your next paycheck in time and make sure there is enough money in your checking account. The thing to remember is you are giving your checks to businesses and businesspeople.

They are interested in getting that money and thus will most likely take your check in that night or the next morning. When they do one of the checks will bounce.

When checks bounce banks and other financial institutions charge your account a fee which usually ranges from $25 to $50. Payday lenders recognized these situations can be costly and thus decided to offer short term loans that cost less than the alternatives.

With this in mind they created payday loans. This is one of the most rapidly growing industries because many people are starting to discover the benefits of these loans.

On a $100 payday loan you will be charged just over a dollar a day in fees. This means if your loan lasts two weeks you will only owe $115 back.

The shorter the duration of the loan, the less you pay. Because of this you should treat the loan like a cash advance of your next paycheck. Borrow it until you receive your paycheck and then be prepared to pay it back.

Although payday loans have these low fees, they have a high annual percentage rate, or APR. This just means they would have a high fee if they were to last a year.

Because they do not last a year, this translates to a normal fee. When taking out a payday loan you should remember to act responsibly.

As with any other kind of loan, you do not want to take it out because you want to buy something. You should weigh out your options and decide if the expense is necessary.

If it is not you should wait for you next paycheck. If the expense is for a need as opposed to a want then only borrow what you know you will be able to pay off.

When you do this you can save money from taking out a payday loan. Taking out a payday loan is very simple.

All you have to do is walk into any payday lender with a state or federally issued ID card, a checking account with your name on it, and proof of income, like a paystub. Upon showing these to the lender, you will discuss with him how much you want to borrow and for how long.

He will then explain to you how much you will owe in fees when the loan ends. When this has been established you will write out a check for how much you will owe when the loan ends and date it for that day.

Online Payday Loans

These online loans are too readily available for quick cash. All a person needs is proof of employment, usually a few paycheck stubs, your boss’s phone number, and two forms of identification. That’s it. Normally your credit score doesn’t even come into play.

The money is made available to you usually in 24 hours or less and is deposited directly into your checking account. Sounds easy right? Online payday loans usually come with enormous fees and potentially dangerous risks. Here is what you can look for to keep yourself safe and your identity in the clear.

The biggest danger is you. If you loose your job before payday, or your paycheck is not large enough to cover the “up to 60% fees” you could be owing money to the online payday loan creditor AND your banking institution. Associated fees, percentage rates, and payback percentages are big money making business for these companies.

How do you think they can afford to take such a risk? Of course, the payout has to be great for them to take it. Other dangers may be hidden fees not covered by your next pay day or initially only covered in the fine print you might not have read. Even more surprising is if your check is a day late and the creditor takes the money out of your now empty banking account. You wind up paying both institutions and up to double the original payback amount.

Other dangers aside from hidden fees could be identity theft, if the online pay day loan company is not FDIC (www.fdic.gov) insured and backed by a national institution.

The simple fact that they have access to your bank account to withdraw funds is heart pounding scary enough in today’s insecure world. Simple clerical errors are made everyday; they could accidentally take the money from your bank on the wrong day or for the wrong amount and this might not be in your favor. You could wind up with a huge mess on your hands and in your wallet.

You need to do a little research about your chosen online payday lender well in advance of the emergency. And you need to make sure that this is in fact, a real desperate emergency.

Making online payday loans a habit can lead to larger and larger fees each time and destroy your credit entirely. They are not a quick fix, not a long term solution to a money shortage, and they can quickly leave you completely shortchanged and even more desperate than before.

Get a Payday Loan With Bad Credit

Payday Loans:

This is a temporary loan secured on the promise of repaying your next paycheck to the lender. These often carry high fees as well as interest rate either during the initial installment, or retroactive if the repayment is not secured by your next payday. These loans are great for a one time emergency, every once in a while. The high fees make them not so great for long time solutions or for repeat users. The good news, the loan is often secured with just a signature, a few paystubs, and is deposited usually within 24 hours. Loan amounts vary from a few hundred dollars to about a thousand dollars.

Credit Cards:

Most credit cards require that the borrower have good credit. And many offer very low interest rates and very few fees. However, if you have bad credit, there are a few choices out there, and many cards are guaranteed to be active the next day. They have a few negative points though. If you do have bad credit, then you may have to pay a monthly user fee along with excessively high interest rates and other fees. Additionally, the card may have an extremely small limit.

Bank Over-Drafts:

These are exactly what they sound like. If you have automatic payments from your checking account set up, or have ever written too many checks, that bank may extend credit to you if the amount is very small, say under a couple dollars. They may charge a fee according to a certain institutional contract. Bank overdraft may also include payment of the debt itself in good faith that you will deposit money very soon to cover the debt.

Payday Advance:

These types of unsecured temporary loans may be secured directly through your banking institution. Usually what is required is 3 months or more of direct deposit of your regular paycheck from your employer. There are usually little, if any fees associated with this. Many times the fees are deducted at your next payday along with the amount of the original advance. These can be risky if you loose your job, or your paycheck is smaller that recent direct deposits. The banking institution will automatically withdraw the loan amount no matter what and every payday that it is not paid will result in another overdraft fee along with interest and the advancement fees.

Corporate Bonds:

These are commercial or government bonds that have a longer term, usually one year, and are for commercial use only. If you have a small business or are starting a business and also have poor credit, you should probably perform a little research about corporate bonds. to see if these are right for your needs.

Getting an unsecured loan is quite easy. If you just need a payday loan and do not have direct deposit from your employer, then just find a payday loan center. There are many online with good reputations. All you need to get started are a few paystubs, two or three forms of identification, a bank statement, and your employer’s phone number.

About Dealing With Illegal Payday Lenders

Find Out If They Are Licensed In Your State

Get in touch with your state’s Attorney General’s office. You can do a Google search for its website online, and from there get the payday loan laws of your state to confirm if the lender you are dealing with is licensed to operate in your state or not. For the states of Florida and Massachusetts, the operations of all Internet payday lenders are illegal. If you discover the payday lender is illegal or unlicensed, then take the following action immediately:

Close Your Account

Close your account immediately. But be aware that they have the reputation of not carrying out revocation order, and so may not close the account, therefore go to your bank and tell the Manager you want a hard debit block immediately placed on your account.

Let them know you are revoking ACH authorizations from illegal companies, and you need to do this to protect your money from been withdrawn by them because you understand that even though you have closed your account with them these companies don’t carry out revocation orders. You can print out a copy of payday loan laws of your state and give it to the Manager.

Ensure your bank heeds to this request

To be on the safe side, it is better you close that bank account to prevent the payday lender from later trying to debit your account as they already have your bank account details. Also, inform your employer about your action against payday lenders so that they don’t honor any request from any payday lender to send your wages to them.

Send Email And Letter To The Payday Lender

You will need to do a little research online for the email and physical addresses of the payday lender – type in the payday lender’s name into Google search and you will be able to get it. Send them an email as well as a letter to their physical address (this is good for your documentation).

Let them know you have researched and found they are illegal to operate in your state, therefore you will only pay back the principal sum, which is what you are supposed to pay even if their payday loans were licensed to operate anywhere in the US. Tell them you have revoked all wage assignments you may have signed with them, and so forbid them and their agents from having access to any part of your wages, or contacting your employer for the purpose of collecting your wage.

State that you have revoked ACH authorization to any of your personal accounts, and that you have closed your bank account, which they know about to safeguard your interest. Let them know you will be filing complaints against them with the Better Business Bureau, the Federal Trade Commission, and with your state Attorney General’s Office.

Basic Elements of Payday Loans

Payday lenders specialize in giving out small short-term loans to those who need the cash a few days until their next paycheck arrives. Payday loans decrease the financial stress you may feel, especially while waiting for your most likely monthly or bimonthly paycheck to be available to cash. Payday lenders understand this financial stress and that is why they provide customers payday loans.

As mentioned before, payday loans are a cash advance that lends a small cash loan until it is possible to receive your next paycheck. This process allows you to meet the needs of you and your family for the month.

Payday loans are then easily paid off the next time you get paid. Payday loans are processed easily and cash is handed to the customer within minutes. Today payday loans can be received in person but now many can even sign-up to receive a payday loan over the internet.

There are three basic steps that need to be accomplished to be qualified to receive a payday loan.

First, you will need to write a personal check for the amount you need, plus the lenders standard fee. Then, the lender will hold the check until your next payday or some other date that is agreed upon by both the lender and the recipient.

In order to qualify for a payday loan, you must have proof of a steady source of income, a checking account in your own name, and a state or federal ID. With this easy process you can be into the store and then back out with cash in hand in just a few minutes.

If you don’t get a payday loan, you may think about other options to make it to the end of the month. These may include writing a faulty check or not paying your bills for the month.

Writing a faulty check or making a late bill payment to get through the month are not good options. Choosing these options will lead to high fees and a bad credit rating. Work on improving your credit score, not hurting it. When you are in need of a little extra cash, a payday loan may be the best choice for you.

If you do decide to write a faulty check, it will likely bounce due to insufficient funds in your bank account. When you are writing a check it means that you have the money and are promising to pay it. The bank will quickly discover you do not have sufficient funds to support the amount you owe to the company who brought in your check. The check you wrote will bounce. When a check bounces, it leaves you with an overdraft fee ranging between $20 to $50. This fee will be automatically charged to your account. The bank will take it out when your next paycheck comes in.

In order to avoid this faulty check situation, payday lenders offer payday loans to keep you in the green til the end of the month. Payday lenders have a small fee added on for their services, just like any other loans, which is the APR. APR stands for annual percentage rate. This rate determines the amount of interest a person will pay during a year time span. For example, on a $50 loan you would be charged just over a dollar a day. This would end up being close to $57 at the end of one week.

Info of Loan Comparisons

Taking out a loan isn’t the easiest thing in the world, but with a quick look at your situation, you will find it is easy to see which type you should choose. Let’s do some loan comparisons and find out which loan is for you. The payday or payday advance-style loan is the quickest and easiest way to get a little extra cash when you need it. You simply bring in your previous pay stubs from work and they will advance you the amount of an average pay for several weeks.

This type of loan can be obtained at a variety of small business chains across North America. The biggest drawback to this loan is that the interest rate is quite high. However, if you need money fast, a payday advance can help.

Another type of loan is when we use the value of an asset, like our house or car, to get a loan. This is known as a secured loan. In the instances that you cannot repay the loan, you have agreed to use the asset as repayment. This type of loan works well if you need a larger sum of money. It usually has a decent interest rate, but can be long term. You may find yourself repaying for a while and paying out a lot of that small interest.

There is another type of loan that we all know pretty well. It is called an unsecured loan. This is the type of loan where you go to the bank, show your need and hope that they approve you for a loan. This type of loan is generally for those with a good credit rating.

There is no chance of having assets repossessed, and the interest rate is fixed. This is the safest way to borrow if you can qualify.

The last type of loan we are going mention is called a consolidation loan. The term ‘consolidate’ means to take many and make into one. With a consolidation loan that is exactly what you are doing. You are taking many different loans with many different interest rates and pay structures, and moving them into one.

Bad Credit Loans and Borrowing

A growing number of people these days are borrowing money because of personal debt. When debts mount up and it becomes a struggle to meet all the payments, a common course of action is to seek a debt consolidation loan. The principle behind consolidating your debts is that you use the new loan to pay off all your old creditors, leaving you with just a single new payment to deal with.

Apart from the fact that it is much easier to deal with only one payment, the other main advantage of a debt consolidation loan is that the new payment should be lower than the total of your previous repayments. Care must be taken, however, to ensure that the payments are not just less because the loan is spread over a much longer period, otherwise you can end up paying back much more in the long term.

It is also important that the interest rate on the new loan is actually lower than for the old debts. The best way to ensure this is to list out all your existing debts and the interest rates you are paying, then only consolidate those debts which are at a higher rate than the proposed new loan. Do not be tempted to automatically include every existing debt you have in the consolidation loan.

Payday loans are a relatively new form of borrowing for the UK. These are a specialist form of lending that often does not require a credit check. Payday loans are usually just for a few hundred pounds or dollars and generally just for a few weeks at a time. They are useful for dealing with small unexpected emergency expenses, but should not be seen as a way to deal with cash shortages due to ongoing debt problems. If they are used to cover ongoing shortages, the same problem will arise each month, which can lead to more and more borrowing. The other thing to be aware of with payday loans is that they should always be paid back on time, as the penalty charges are often extremely high.

An alternative way to borrow money if you have a bad credit rating is through homeowner secured loans. These are only available to people who own their own property and are a way of borrowing money which is secured against your home. What this means is that the debt is legally bound to your house, so if you do not keep up with repayments, the lender can arrange to have your house sold off to get their money back. The fact that there is the security of your house attached to the loan means that the lenders are less worried about poor credit ratings, and are often happy to lend much higher amounts of money.

Instant Decision Loans

Only last month, I was doing quite well. It looked like I’d be able to get through another month without resorting to going without food and might even be able to buy myself a new pair of shoes to replace the ones I was currently wearing which had a discreet, but embarrassing hole in the sole. And then my boiler stopped working. I made a few phone calls and the average quote was for around $300 for a repair. I had no hot water to clean myself and no heating. Fortunately my cooker is electric so I could still cook the food that I wasn’t going to be able to afford anyway.

Your situation might not be as drastic as mine was, or perhaps it is even worse, but the point is that your mind probably turned to the same idea of a solution as mine did. An instant payday loan.

We’ve all seen and heard the commercials right? What a fantastic way to get yourself out of a tight spot! But if you’re anything like me, you also heard a few alarm bells ringing in the back of your mind somewhere. And so, before jumping in to the nearest loan shark infested waters I took the time to do some research. I spent a whole day lurking on financial forums and discussion groups and eventually plucked up the courage to ask a few knowledgeable people about instant loans and what to look out for. Here are some of the words of wisdom I received from these financial ‘wise old men’…

An instant payday loan does what it says on the label. You get an instant decision loan. Pay it back on your next payday.

If under any circumstances you don’t think you would be able to pay back the full amount of the instant loan on your next payday, then run away as fast as you can in the opposite direction because guaranteed, you will end up in a far worse financial situation a little further down the road than you are right now.

If you are completely sure you will be able to pay the full amount of the instant loan back on your next payday then do your research. The internet has really opened up the market for instant loans and they are all competing against each other for you. Make them work to get you, not the other way around. Call a few of them up, tell them that “so and so company offered me a rate of…%. Can you do any better?”. Play them off each other to drive down the deal.

Read the small print. This is no joke. You are taking a big, big risk if you don’t absolutely understand every word of the arrangement. If you don’t understand the jargon then find someone who does. You have no idea how many people are facing complete and utter financial meltdown because they didn’t take this part seriously.

Cash Loans

Need a Personal Loan

You may need a personal loan for almost anything. You could be going on vacation, remodeling your home or just simply need some extra cash to consolidate bills. When applying for a personal loan you will be faced with a decision of rather you want a secured loan or an unsecured loan.

A personal loan will help you get the cash you need quickly. A personal loan will leave you with options such as how much money you want to borrow and how much time you want to pay back the money. These options will affect what your monthly payment is and will affect what the over-all interest will be, so make sure you know all terms and conditions.

Unlike other loans, a personal loan gives you freedom in how you spend your money. The bank has no say about how you spend your money, but these freedoms do make it harder to get a personal loan.

Payday Loan

A payday loan is a loan is a cash advance only until your next pay check. This loan is very useful if you need just enough money to get through the week until payday and the cash is usually in your hands in just a couple of minutes.

There are institutions that will pay usually around R500 and then could increase to R1,000 after a matter of time.

Much like a personal loan, there are secured and unsecured options. Although the majority of institutions will not require you to own a home, you could have other property you could put up for security. Also most banks do not offer a payday loan so beware you do not get scammed as the internet is filled with offers that are not real.

Most likely you will have to have a bank account and proven employment to get a cash advance. If you can produce proof of both employment and a bank account, you should have no problem getting a loan. In some rare cases a cash advance institution might do a credit background check on you.

If you decide you are going to take out a payday loan you should know that it can be very risky playing this game if you don’t intend to pay it right back when you get your pay check. The reason is if you default on any payments you will be looking at a 20% increase on interest and that interest will just increase more and more and could get you in a considerable amount of debt. If you know you can’t pay it back, you’re better off not taking out a cash advance.