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Category Archives: Finance

Pay Off Struggles

This is because people are starting to discover how their lives can truly benefit from a payday loan. Before payday loans there was not a place for people to turn when they needed a small amount of cash and needed it quickly.

Banks and other financial institutions only offered long term loans so if you needed cash it would take you too long to pay it back. Plus, when considering whether or not to give you a loan those other financial institutions look to credit scores and thus if your credit is poor you could be denied.

In recognizing this lenders saw the need for a short term loan that would act as a cash advance of your next paycheck. This means when you know you will be getting paid in a week but you need the money now you can take out a quick loan and then when you get your paycheck pay off your loan the following week.

So you understand a little more about payday loans but you still want to know if they will actually save you money. This is when you have to compare them to your other options.

Imagine you have to pay off your rent at the end of the week but your car breaks down. You all of a sudden find yourself $100 short of paying both these debts.

You now have to figure out how to get that $100 right now so you can fix your car and be on your way. In this situation one thing you consider is not paying your rent on time.

If you could just wait one week for your next paycheck then you would have all the money you need. It would be nice if your landlord would let you but if you pay your rent late he will charge you a late fee.

This fee is a percentage of how much you pay each month and can become quite costly so you decide this is not a good option. Another idea you have is to simply write out a check for both bills in full and then hope one of the debtors is late in depositing your check.

If they are late then in one week when you get your paycheck you could quickly take it in and then the money would be there. Again you are facing some problems because businesses try to take in checks as soon as they get them for management and financial reasons.

When your landlord and the auto shop take in your checks they will discover you do not have enough funds because you check will bounce. Financial institutions have fees they apply to checks that bounce which range from $25 to $50.

It is now important to understand what a payday loan would cost you. On a $100 loan from a payday lender you will be paying just over a dollar day in fees.

This means if the loan was to last two weeks you would owe just $115. Looking at these numbers you can see that a payday loan can truly save you money.

Direct Lender PayDay Loans

Most financial services companies concern themselves only with the very rich. Huge firms greedily lend only to massive corporations. They have no concern for the little guy who is suffocating slightly behind inflation. However, there are champions of the people who are working hard and struggling to pay their bills. The providers of direct lender payday loans are just such champions. They understand that working people sometimes can’t wait for their check to pay bills. You have a job. Your check is coming. They will give you a loan to help cover the unexpected financial need that has fallen on you. They know you are working, have a check coming, and are good for it. They don’t require that you have perfect credit. Obviously, working people with bills can have their credit scores harmed by unfortunate events. It doesn’t mean you are an unreliable or untrustworthy person. You simply need a little advance payment.

This is the need that direct lender payday loans satisfy. They work very hard to ensure that working people are not punished by late payment penalties. They provide help when you are saddled with a sudden financial emergency that might affect your ability to get to work.

Typically, having a job is the major prerequisite for getting a direct lender payday loan. This is an ideal type of loan for someone with a job, regardless of credit history, who needs money for something quickly. They are typically provided by firms who are small businesses, rather than the massive Wall Street firms who just can’t relate to your life situation. This capital is coming from the community and is being reinvested in you. This is a vastly superior relationship for a working person than some huge firm that is shifting paper from entire industries. You can get lost in the shuffle.

Direct lender payday loans will involve an interest payment. This is your way of saying thanks for helping you out of a tough spot when no one else would. However, sometimes paying an interest payment would be much cheaper than penalties for late payment or defaults. With the confusing web of contracts that makes up modern life, the easy way to stay in good shape is to keep your payments up to date. In this way, often an interest payment would be less than the cost of penalties and fees. It is important to take this into consideration. Depending on the nature of your financial problem, there are a lot of factors that could make waiting for your next check more expensive and damaging than just taking a direct lender payday loan. You don’t want to wander down such a road blindly.

When Applying for Payday Loan

Paying back

If you don’t have enough funds in your account to pay back the loan, you may try other options. For instance, you may renew the loan amount or consider taking out another payday loan. But keep in mind that this new loan will have its own financial charges and extra fees. And the extra fees are actually incur because of late payment of the amount of loan.

State Regulations

In each state, regulations are different for payday loans. Usually, the term limit is not more than 30 days. The problem is that lenders often issue loans that feature a longer term limit. In this case, you are at the lender’s mercy, which is a situation you may not be willing to go through.

Cash crunches

As said earlier, the purpose of a payday loan is to deal with a temporary financial crisis, and we have to pay back the loan as soon as we are out of the financial trouble to avoid high interest and fees.

So, it is not a good idea to be tempted by the “roll over” trend or you may have to pay a huge sum at the end.

Financial position

Usually, these loans are for borrowers with lower incomes as they can’t afford to borrow from other sources. Here, it is important to keep in mind that lenders don’t usually take into account the financial position of those who are applying for the loan. So, you have to think harder before opting for this option.

Automatic rollover

You need to be aware that there are some loan sites that tend to rollover the loan amount automatically. And then there are sites that have some contractual agreements that state that you, the borrower, do not have any right to file for bankruptcy or file a lawsuit against the lender.

Approval

A great characteristic of payday loans is that they are easy to get, meaning the approval process is quite easier than other types of loans. So, most borrowers find them quite tempting, but you should be careful and only opt for this option if you have no other choice left.

Instant Approval Payday Loan

As an immigrant to the United States with no family support or long term friends to turn to for such an intimate issue as finances, it was, to put it mildly, a gut-wrenching moment that needed urgent attention.

Add to the mix the fact that I did not have any credit at all, not even bad credit, and you’ll understand the predicament I found myself in.

Sleeping in a fetal position whilst sucking on my thumb was not an option. I had a wife and new baby relying on me.

There’s a saying out there that, if you think your bank does not care about you, try missing a couple of payments, and you’ll see how really concerned they are about you!

Sadly, that concern does not transcend into help of any sorts, but more like an urgent nudge to produce some cash or else.

What I’ve never really been able to understand is, Banks charge you more for having insufficient funds in your account or for having no money to pay your bills as if you’ve just hit the jackpot!

I digress.

If you’re unfortunate enough to find yourself in a similar situation as I once was, take heart, perhaps this article will assist you avoid all the minefields of searching for credible instant approval payday loan companies that will empathize, listen and work with you until you’re out of your predicament.

You see, when you have no credit or have bad credit, financial institutions do not want to have anything to do with you, you’re as good as dead in their eyes, so there’s no love lost there.

However, you have the option of seeking out alternative sources of finances, or the parallel market, as it’s called, and this is where Instant approval payday loan companies come in.

In a nutshell, Instant approval payday loan companies advance you some cash, usually up to between 1000 – 1500, on the understanding that you’ll repay all of the money, or a fraction of it based on your terms and conditions, by your next pay date.

In most cases, the Instant approval payday loan company will not even check your credit history. All they require is that you’re gainfully employed, that you earn between $800 – $1000 per month, and that you have a checking account.

Advance Your Payday

We do not want to choose the wrong one because we want to save the most money we can. This is why it is incredibly important to understand what the options are and use that knowledge to our benefit.

The problem is that some of the options are less publicized or even downplayed so we do not consider them. Payday loans are one of those options that are commonly misrepresented.

Because of this, it is necessary to understand what they are and contrast their cost with other options to see which would save the most money. In your financially difficult dilemma you are $100 short on cash and you have to pay your rent at the end of the week.

The problem is that your paycheck will not arrive until the following Thursday. You have to pay off this debt but you simply do not have enough money to do so.

You decide that you will simply not pay off your rent and hope your landlord will accept a late check. The problem here is you will be charged a late fee on your rent as soon as it is late.

This fee is usually a percentage of how much rent you pay so you end up paying a significant amount of money. Realizing this you decide you want to avoid going this route and look to other options.

Another thing people often choose to do is write out a check for money they do not have. This means that you would simply hand your landlord a check for the amount in full even though in your bank account you are $100 short.

This is done in the hope that the check will not be deposited until after you receive your paycheck and are able to take it in. This is a tricky decision because banks charge an overdraft fee on every check that bounces.

When your landlord takes the check in to deposit it, it will bounce, and you will be left with the fee. These fees range from $25 on the low end up to at least $50.

Considering you are just $100 short, this translates to a costly fee. Payday loans came into existence because of these costly situations.

These loans are short term loans that offer you the freedom you need to pay off that rent and then pay off the loan in a timely manner. This prevents you from remaining in a constant state of debt and allows you immediate money saving measures.

On a $100 payday loan the fee would be about a little over $1 a day. This means that after two weeks, when you pay the loan back, you will owe $115.

This clearly saves them the most money so is a great option for this situation. Despite its seemingly great appeal, many other financial institutions are scared of what effect payday loans have on their profits.

About Regulatory Laws For Pay Day Loans

Loans and all financial transactions do come under the purview of the law makers. Hence Pay day loans are also under the scanner and some regulatory laws have been framed. The United States is an association of states. Certain laws are under state jurisdiction and certain under federal control. As far as these short term loans are concerned they are state subject and no federal law exists to regulate them.

But there is one exception to this scenario and that concerns pay day loans for members of the United States armed forces. In their case Congress has framed laws regulating the APR that can be charged to a service man. US Congress by an act in October 2006 has capped pay day lending for military personnel to 36 %.

Pay day loans as we know are also available to persons with bad credit. This is like opening a Pandora’s Box and earlier people with bad credit were charged interest rates of 600 or 800 percent. This is pure extortion. But now regulations are there that restrict these extortionist rates. Thus it is in your own interest to be aware of the rules and laws that regulate disbursal of these loans.

The states have also enacted laws that make it mandatory for the lender to disclose the APR he will charge as well as all rules and regulations regarding the loan. All this is supposed to be in simple language and there has to be transparency in all deals. Presently more than 30 states of the union have passed laws regulating such loans and advances. The information on these laws is available on the net and can be assessed easily.

However there is a hiatus in the laws of the states. Nearly 37 states have declared pay day lending as legal and laws are enacted to regulate these loans. However in a lot of states including Georgia, such loans are proscribed and illegal. However when not explicitly banned laws that prohibit payday lending are usually in the form of usury limits. In states that have not proscribed pay day loans, the interest rates are capped and the APR is controlled. This is a major regulatory practice.

Payday Loans versus Bank Loans

A bank’s loan approval process takes time – typically weeks (or even months in the current economy). So if you need cash fast, a bank loan is not for you. Bank loans work better for planned expenses than for unforeseen financial emergencies. A payday loan, on the other hand, means the loan will be approved quickly and you can have cash in your checking account in as little as 24 hours.

First of all, you should know your credit score. The bank certainly does. Your credit score will play a large role in any bank’s decision about your loan application. If you have bad credit, it may be impossible to obtain a loan through your bank. On the other hand, payday lenders don’t look at your credit score. They only verify that you have a steady, reliable source of income to determine whether or not to lend you money. If your credit isn’t great but you have a steady job, a payday loan might be right for you.

Payday loans tend to be for smaller amounts, usually a few hundred dollars up to around a thousand dollars. The amount you can borrow certainly won’t exceed the amount of your next paycheck, because this is the money that the payday lender is counting on for repayment. If you have an unexpected car repair and don’t have cash on hand to cover the mechanic’s bill, a payday loan could cover the costs until your next paycheck comes in. If you need a new car, however, you’ll have to apply for a bank loan.

If you can get approved for a bank loan, you’ll typically have years to repay the loan and have the option of making very low monthly payments. This is convenient because you know you have time to repay your debt. With a payday loan, you usually have a couple of weeks or at most a month to repay the full amount of the loan, plus the interest charged. You have to keep in mind that a large part of your next paycheck will go to pay back your loan, so be prepared to cover your normal monthly expenses and settle your debt in a tight timeframe.

Remember that a payday loan is a SHORT-TERM credit option. Payday lenders charge high interest rates for the convenience of obtaining a quick and simple loan, so these types of loans should be used for emergency expenses only. Rolling over a payday loan can be costly, so plan on repaying it in full with your next paycheck. After answering these questions, you should have a better idea of which type of loan best fits your needs. Consider all your options carefully before deciding if a bank loan or a payday loan is right for your financial situation.

No Credit Check Loan Works

These loans are something that one looks forward to when no other banks or financial institutions will give them a loan for any number of reasons. They could be previous defaulters or have missed payments on a home loan or have pending credit card bills – anything late or unpaid in terms of debt will immediately make their credit history tarnished and it will become impossible for such a person to get a loan approved.

But when we talk about such a loan that requires no prequalification, it is important that the consumer fully understands the ins and outs of this procedure before actually getting into a contract with a lender. To find the right lender who will provide such a loan is not easy. You will need to make background checks on the lender or the company who will provide the loan, and you will need to be very careful what terms are agreed.

There are so many scams going on in this regard that the borrower needs to be very careful. Just because you need money at that moment does not mean you should not be careful. If you are not careful you may land yourself into even more trouble. If you conduct a little research about the lender it may save you from a lot of mishaps and problems in the future. Even if you are sure that they lender has credibility, they might still be offering you an unfair deal.

No Faxing Cheap Payday Loan

Some Requirements

As mentioned above, a no faxing cheap payday loan does not involve any highly complicated procedure. In fact, it is easy and fast because it requires a minimum of paperwork. In order to apply for such loans, you should be a U.S citizen with at least 18 years of age. The lending company also looks for job security of the borrower. As a borrower, your monthly income should be 1000$ per month or more. In addition, the lender asks for personal details and a valid bank account. However, no guarantee or collateral is required. The company does not check your credit history either. So, you can get a loan despite having poor credit ratings. Above all, a cheap payday loan does not require borrowers to fax any document to their lenders. So, borrowers can get funds without faxing any papers. The entire system works smoothly without any fuss.

What Can You Get?

This kind of an instant financial relief is for short term requirements. Therefore, only small amounts ranging from 200$ to 500$ can be obtained for sudden and unexpected needs. These amounts are offered for shorter periods and the borrower has to pay them back on his next payday. For ensuring smooth repayment, your lender collects a post dated check covering entire loaned amount with interest and other charges. However, the company returns the check in case you make the payment in cash on your payday.

Advantages Associated with the System

As mentioned above, the system is effective and runs hassle free. As a result, a cheap loan till payday offers a host of benefits to borrowers. First, the transaction can take place online, though offline options are also available. An offline transaction is always advisable, since it is quick and easily accessible. Just fill in an online application with your essential details and your request will be processed instantly. Second, the amount is credited to your bank account electronically within two business days. Nevertheless, there are some companies claiming to credit money within thirty minutes. Exercise caution while dealing with such companies as most of them may have false claims. Third, lending companies provide credit without cross checking credit history of borrowers. Fourth, no bank or third party guarantee is required and money is lent without any collateral.

Few Important Considerations

Here are certain significant considerations that you should know before settling on for any monetary relief. These quick loans come with high rates of interest because of high risk associated with them. There are other administrative fees and charges as well making them even more expensive. These extra charges and interest normally comes around 15$ for every 100$ borrowed. Moreover, interest rates are higher as compared to conventional debts. Subsequently, it becomes important to obtain them for shorter periods, since they are not feasible for longer durations. However, keeping in mind benefits that they offer, high interest rates may look justifiable.

Payday Loan Debt Consolidation

Consolidating Payday Loans

Consolidating debts remains the only feasible option under conditions of mounting debts. Normally, a lender allows a maximum of two extensions of 30 days each if payments are not on due date. However, there are times when you as a borrower are not able to repay your debts within those two extensions. In this scenario even a small amount becomes bigger because interests and other charges keep on accumulating. The situation becomes unbearable especially if you are a middle class person. Most lenders under such circumstances assign the task of recovering money to a collection agency. Subsequently, the agency people make frequent phone calls and harass the borrower. In order to avoid such an embarrassing situation, taking help from a debt consolidation company remains the best available alternative.

Know the Consolidation Procedure

As mentioned above under conditions of acute debt, consulting an expert company is always advisable. The company consolidates as well as manages your finances efficiently. It negotiates with your creditors on your behalf and carries out settlement. It offers a feasible repayment plan and combines all your multiple loans into single one. Now, you have to make only one lower monthly payment to your company. Most of these companies offer low interest rates making the entire process quite easy. The best part is in this kind of a system you do not have to deal directly with your creditors or collection agency. As a result, there is no inconvenience or harassment.

Things to Do

Even though payday loan debt consolidation is the best solution to all exigent economic troubles, every effort must be made to avoid a situation of acute debts. If you sincerely repay all your debts on time there will never be a situation of debt trap. Make sure all your payments are on time. Never obtain unnecessary finances or more than required. Try to maintain a decent life style without too much focus on luxury. Consolidating debts is an effective solution but it must be used only as the last resort. First, make a sincere effort to avoid any grave economic situation. However, always remain prepared for the worst unexpected circumstances.