In order to apply for a payday loan, applicants ought to know how they work and get used with a variety of concepts that will let them know weather a payday loan is convenient or not. This kind of loans came to solve a problem that before their appearance was almost impossible to work out: Getting finance in an emergency without enough time to apply for a personal loan. We are talking about a small amount of money (up to $2000) but needed within 24 hours.
As one can know by intuition, 24 hours is not enough time to process all the information regular lenders need in order to approve a personal loan. Thus, before the arrival of payday loans customers had no other choice but to resort to family or non traditional financial solutions usually illegal and extremely expensive.
How they work
Regular loans have lots of requirements. In fact, banks and traditional lenders rarely grant loans for people with a bad credit score or history and they usually avoid lending to those who can't offer any collateral. Payday Loans, on the other hand, have almost no requirements and are especially designed for those who lack collateral and have bad credit or no credit at all.
The only requirements an applicant will have to meet are: showing proof of a steady job and owning a bank account. This is due to the fact that Payday loans have to be paid off by the time the applicant's next paycheck arrives and the loan amount will be transferred to the borrower's bank account. Anyone who can meet these two requirements will get a payday loan without hassles.
It is possible to cancel the loan before de due date, this fact will be recorded and will improve your ability to get finance, so if you can do so, don't think twice. Otherwise, the loan amount plus fees and interest will be subtracted from your bank account when the loan is due.
Interest rate explained
Payday loan carry high interest rate, in fact, the interest rate is turned in this case into a flat and single fee, usually calculated every $100. Payday loan fees range between $10 and $40 every $100. It varies if the fee is calculated weekly, biweekly or monthly, so it's a smart thing to watch the small print closely as what you may think is a good deal can turn out to be a rip off.
If you just need a small amount there is nothing to worry about. However if you will be borrowing a larger amount be specially careful with the interest rate as you may end up paying up to 30% interest on a very short term loan. In order to get a good deal out of a payday loan you should only borrow small amounts for short periods of time, this way not only you will avoid overpaying but you'll also improve your credit history.
There are many online payday loan lenders that won't pull your credit report nor require documentation to be sent via fax. Online lenders provide the best service and usually have the lowest interest rates. There are also sites that provide access to many lenders so you can compare what each of them has to offer.
Saturday, October 20, 2007
A How To Get Out Of Debt Faster Using Zero APR Credit Cards
I know it sounds crazy but it's possible to get out of debt by using 0 APR credit cards. The zero APR credit card is a special no interest rate offer that comes from different financial institutions looking for new business. These cards usually offer an extremely low or no interest rate charge during an introductory period. During this introductory time, you aren't charged any interest on the balance owed.
The zero rate cards also allow for transferring your old balance from a high interest rate card to your new lower rate card. This means that you can take your $5,000 dollar credit card balance on your old card that was charging 18 to 24% interest and move it over to the new card at the introductory rate.
Moving a high balance credit card to one of these zero APR intro rate cards can save as much as $100 a month. Now consider that if you take that hundred dollars a month and pay down the total amount owed, even if the temporary rate was six months, you saved $600 dollars.
The good thing is that all you had to do pay down that extra $600, was the continued to make the exact same monthly payment but on the new credit card. The extra money instead of going to interest simply went to pay down the total principal owed.
Another wise financial decision you can make is that once you transfer your credit card balance to the zero APR credit card, close your original high interest rate card account. Having too many credit cards or credit lines available can actually lower your total overall credit score. Closing the high interest account makes sense because it keeps you from continuing to use that card.
One of the worst things anyone can do when using zero APR credit cards as a financial tool is to keep the high interest rate card active in continuing to use it. This is a common mistake of many young adults who instead of using careful budgeting strategies make the assumption that they can handle credit and end up with yet another increase in credit card debt.
Credit card interest rates are getting absolutely ridiculous. To make matters worse, the financial companies behind these cards are charging exorbitant fees whenever they can. This means that if a payment is somehow late, not only do they charge a huge late fee but can also raise your interest-rate. It's in everyone's best interest to get out of credit card debt as quickly as possible, and using zero APR credit card offers can be a good strategy.
The zero rate cards also allow for transferring your old balance from a high interest rate card to your new lower rate card. This means that you can take your $5,000 dollar credit card balance on your old card that was charging 18 to 24% interest and move it over to the new card at the introductory rate.
Moving a high balance credit card to one of these zero APR intro rate cards can save as much as $100 a month. Now consider that if you take that hundred dollars a month and pay down the total amount owed, even if the temporary rate was six months, you saved $600 dollars.
The good thing is that all you had to do pay down that extra $600, was the continued to make the exact same monthly payment but on the new credit card. The extra money instead of going to interest simply went to pay down the total principal owed.
Another wise financial decision you can make is that once you transfer your credit card balance to the zero APR credit card, close your original high interest rate card account. Having too many credit cards or credit lines available can actually lower your total overall credit score. Closing the high interest account makes sense because it keeps you from continuing to use that card.
One of the worst things anyone can do when using zero APR credit cards as a financial tool is to keep the high interest rate card active in continuing to use it. This is a common mistake of many young adults who instead of using careful budgeting strategies make the assumption that they can handle credit and end up with yet another increase in credit card debt.
Credit card interest rates are getting absolutely ridiculous. To make matters worse, the financial companies behind these cards are charging exorbitant fees whenever they can. This means that if a payment is somehow late, not only do they charge a huge late fee but can also raise your interest-rate. It's in everyone's best interest to get out of credit card debt as quickly as possible, and using zero APR credit card offers can be a good strategy.
Unsecured Personal Payday Loans Are Not a Long-Term Solution
Unsecured personal loans are sometimes called fast cash or payday loans. The good news is that anyone with a steady paycheck, even those earning minimum wage, can qualify for these types of cash advances. Pay day lending however, can be a very short and painful way out of a temporary situation.
The bad news with unsecured personal loans were payday loans is that you almost never can seem to catch up. A payday advance is extremely expensive! How expensive, you might ask? Some companies charge as much as 25% or more, every couple of weeks. This comes out to 650% for a year. But that's not the worst of it...
Think about this:
A payday cash advance of $100 for two weeks, would cost $125. So if you pay the loan back in two weeks. You pay them the hundred dollars plus 25 dollars in interest.
So you would think that in four weeks, it would cost an it would cost you $150, right?
WRONG!
The way payday cash advance loans work is that they loan you $100, in two weeks it would cost you $125. But if you couldn't pay the hundred and $25 in interest, they would simply give you a new loan to pay off the old one.
So for the next two weeks, you would have $125 loan and owe $31.25 in interest.
So a 100 loan, for one month would actually cost $156.25. Here's a quick look at it just three months for a hundred all alone could cost.
Weeks w/Loan Amount Owed
$100.00
2 weeks $125.00
4 weeks $156.25
6 weeks $195.31
8 weeks $244.14
10 weeks $305.18
12 weeks $381.47
So after four weeks. The typical payday loan of 100 dollars would cost $156.25. After two months it would cost $244.14. And after just three short months. A cash advance of only $100, would cost you $381.47.
This figures out to 650% interest over one year! That's not the annual percentage rate or APR, but just flat interest-rate.
The last problem with personal payday type loans is that most want access to your checking or savings account. They say this is to make it easier for you but it also allows them full access to your bank accounts. If there's an error, you fight them about it all the while they take your money.
If however, you are in need of a fast cash loan and are able to pay it off on time, there are several programs that offer your first loan free of interest. I you need a one time short term unsecured personal loan, maybe one of these no interest one-use options are for you.
Remember though, the payday loan businesses will continue to contact you trying to get you to get back in debt. You must be able to ignore these types of marketing plans that would only end up hurting you long-term financial future. Just if you decide to use a payday loan, just make certain you have a plan to pay it back on time.
The bad news with unsecured personal loans were payday loans is that you almost never can seem to catch up. A payday advance is extremely expensive! How expensive, you might ask? Some companies charge as much as 25% or more, every couple of weeks. This comes out to 650% for a year. But that's not the worst of it...
Think about this:
A payday cash advance of $100 for two weeks, would cost $125. So if you pay the loan back in two weeks. You pay them the hundred dollars plus 25 dollars in interest.
So you would think that in four weeks, it would cost an it would cost you $150, right?
WRONG!
The way payday cash advance loans work is that they loan you $100, in two weeks it would cost you $125. But if you couldn't pay the hundred and $25 in interest, they would simply give you a new loan to pay off the old one.
So for the next two weeks, you would have $125 loan and owe $31.25 in interest.
So a 100 loan, for one month would actually cost $156.25. Here's a quick look at it just three months for a hundred all alone could cost.
Weeks w/Loan Amount Owed
$100.00
2 weeks $125.00
4 weeks $156.25
6 weeks $195.31
8 weeks $244.14
10 weeks $305.18
12 weeks $381.47
So after four weeks. The typical payday loan of 100 dollars would cost $156.25. After two months it would cost $244.14. And after just three short months. A cash advance of only $100, would cost you $381.47.
This figures out to 650% interest over one year! That's not the annual percentage rate or APR, but just flat interest-rate.
The last problem with personal payday type loans is that most want access to your checking or savings account. They say this is to make it easier for you but it also allows them full access to your bank accounts. If there's an error, you fight them about it all the while they take your money.
If however, you are in need of a fast cash loan and are able to pay it off on time, there are several programs that offer your first loan free of interest. I you need a one time short term unsecured personal loan, maybe one of these no interest one-use options are for you.
Remember though, the payday loan businesses will continue to contact you trying to get you to get back in debt. You must be able to ignore these types of marketing plans that would only end up hurting you long-term financial future. Just if you decide to use a payday loan, just make certain you have a plan to pay it back on time.
Thursday, October 18, 2007
Payday Loan Guide
Cash advance payday loans are just loans to help your finances in between your paydays. A lot of people who apply for a quick payday loan are responding to an emergency financial situation. The downside is that the interest rates for a cash advance payday loan are higher than for conventional loans. The no fax payday loans are the most favored among the general public and these are probably the best payday loans.
The reasons for a fax less payday loan are plain - it saves a bit of time on application, money for the borrower, and tempts more people to apply. Online cash advance payday loans are the number one option that one can think of when an emergency strikes. Some other alternatives to the payday loan are personal loans, credit cards, and debt consolidation. In point of fact, requirements for a payday loan are small; you just need to hold a bank account and a job. It is a fact that the number of people applying for a payday loan are increasing by the day.
If you need quick money, an online payday loan could be the answer. Whether it is a medical emergency, garage bill, or merely bad financial planning, one way to get help is to obtain a quick payday loan. Obtaining a quick cash loan, cash advance or payday loan has never been so easy, thanks to the powers of the internet. I am pretty sure it is compulsory for quick payday loan applicants to have been in their current employment for a minimum period of 6 months. Cash advance has become a useful alternative when we need quick cash. The online payday loan takes only a minimal time to complete and usually doesn't need any other documentation.
Occasionally in between paychecks we find ourselves running out of cash, and need to find an easy cash payday loan. Luckily it is simple to apply online for fast cash payday loans. Payday loans are easy to obtain and because of the way that they are set up, are easy to pay back.
To submit an online payday loan application the applicant must be over 18 years old, this is always required. One thing you might want to find out is if you are being charged extra for a no credit check with any online payday loan you take out. You can get an online payday loan without setting foot out of your house.
The reasons for a fax less payday loan are plain - it saves a bit of time on application, money for the borrower, and tempts more people to apply. Online cash advance payday loans are the number one option that one can think of when an emergency strikes. Some other alternatives to the payday loan are personal loans, credit cards, and debt consolidation. In point of fact, requirements for a payday loan are small; you just need to hold a bank account and a job. It is a fact that the number of people applying for a payday loan are increasing by the day.
If you need quick money, an online payday loan could be the answer. Whether it is a medical emergency, garage bill, or merely bad financial planning, one way to get help is to obtain a quick payday loan. Obtaining a quick cash loan, cash advance or payday loan has never been so easy, thanks to the powers of the internet. I am pretty sure it is compulsory for quick payday loan applicants to have been in their current employment for a minimum period of 6 months. Cash advance has become a useful alternative when we need quick cash. The online payday loan takes only a minimal time to complete and usually doesn't need any other documentation.
Occasionally in between paychecks we find ourselves running out of cash, and need to find an easy cash payday loan. Luckily it is simple to apply online for fast cash payday loans. Payday loans are easy to obtain and because of the way that they are set up, are easy to pay back.
To submit an online payday loan application the applicant must be over 18 years old, this is always required. One thing you might want to find out is if you are being charged extra for a no credit check with any online payday loan you take out. You can get an online payday loan without setting foot out of your house.
Wednesday, October 17, 2007
How-To Get an Online Payday Loan Even If You Have Bad Credit!
Many people face the unfortunate fact that they suffer from bad credit or no credit. The hardest thing for a person with bad credit or no credit to do is to get ahead and start rebuilding their credit rating.
There are times when most of us face financial emergencies and have a need for a loan to get us through the crisis. However, if the consumer has bad credit, their options for finding a way through the crisis are few.
How Do You Know If You Have Bad Credit?
Most of us already know if we have a good or bad credit rating based on our history of paying our bills and loan payments. If we have paid them in full and on time, we most likely have a positive credit rating. If, however, we have struggled to make payments, or been late on payments, there would be reason to believe that our credit rating would be less than perfect.
In 2003, the federal government passed a law that allows consumers to check their credit rating for free, once a year. Prior to the passage of this law, it was quite difficult for a consumer to view their credit report and many people found this to be unfair because lenders are making decisions about whether or not to give them a loan based on this report.
There were a handful of websites and businesses that began offering ways for consumers to view their credit report for a fee. It simply did not make sense that a consumer had to pay to view their credit report considering a credit report can have such a major impact on a person's life.
The Government Has Mandated Free Credit Reports For Everyone... If You Know Where To Look...
The government's official website for getting your annual free credit report is AnnualCreditReport.com. You can, and should, view your credit report to find any discrepancies in your credit history. This will help ensure that your credit report is accurate and that you have the appropriate rating. If you find errors on your credit report you can contact the reporting company and correct those errors. Taking a look at your credit report will also let you know if you have been a victim of identity theft and if someone has been taking out loans or credit cards in your name.
Many younger people have simply not yet established a credit rating because they have had very few, if any, loans. It is difficult to prove to a lender that you are a person that repays their bills when no one will give you any bills to repay.
Having a bad credit rating or no credit rating can leave you in a real bind if you find yourself with unexpected expenses. The reality is that unexpected expenses occur from time to time, no matter how hard we try and stay on top of a budget.
The First Step On The Road To Recovery
One option that you can turn to if you run into one of these unexpected expenses, and your credit is less than perfect, is getting an instant online payday loan. When you get an online payday loan or no teletrack payday loan, lenders generally do not check your credit rating to see if you have experienced financial difficulty in the past. They are not as concerned with your credit rating as a traditional lender would be, because you are generally required to write a post-dated check to them. The expectation is that the online cash advance payday loan company will cash the check on your next payday. This is how they get the security or collateral that assures you will repay the internet payday loan or no teletrack payday loan.
All that is generally required with a no teletrack payday loan or an instant online payday loan is that you are employed, have a checking account, and that you are at least eighteen years old. If you can meet these minimum requirements, you can easily be approved for a short-term internet payday loan or no teletrack payday loan.
Additionally, many online payday cash advance loan companies will allow you to get another no teletrack payday loan or instant online payday loan from them in the future, for a larger amount, if you repay a couple of loans on time and in full with them. In essence, you are establishing credit with the internet payday loan company.
Instant online payday loans or no teletrack payday loans are generally seen as a last resort and should only be used in an emergency situation. Online cash advance payday loans are not a way to fix long-term financial problems; they should generally be used to simply get you by until your next paycheck arrives. The lenders will charge you a fee for taking out the instant online payday loan, but this fee is a small price to pay if you have to have money now and you have no other means of getting your hands on some quick cash.
There are times when most of us face financial emergencies and have a need for a loan to get us through the crisis. However, if the consumer has bad credit, their options for finding a way through the crisis are few.
How Do You Know If You Have Bad Credit?
Most of us already know if we have a good or bad credit rating based on our history of paying our bills and loan payments. If we have paid them in full and on time, we most likely have a positive credit rating. If, however, we have struggled to make payments, or been late on payments, there would be reason to believe that our credit rating would be less than perfect.
In 2003, the federal government passed a law that allows consumers to check their credit rating for free, once a year. Prior to the passage of this law, it was quite difficult for a consumer to view their credit report and many people found this to be unfair because lenders are making decisions about whether or not to give them a loan based on this report.
There were a handful of websites and businesses that began offering ways for consumers to view their credit report for a fee. It simply did not make sense that a consumer had to pay to view their credit report considering a credit report can have such a major impact on a person's life.
The Government Has Mandated Free Credit Reports For Everyone... If You Know Where To Look...
The government's official website for getting your annual free credit report is AnnualCreditReport.com. You can, and should, view your credit report to find any discrepancies in your credit history. This will help ensure that your credit report is accurate and that you have the appropriate rating. If you find errors on your credit report you can contact the reporting company and correct those errors. Taking a look at your credit report will also let you know if you have been a victim of identity theft and if someone has been taking out loans or credit cards in your name.
Many younger people have simply not yet established a credit rating because they have had very few, if any, loans. It is difficult to prove to a lender that you are a person that repays their bills when no one will give you any bills to repay.
Having a bad credit rating or no credit rating can leave you in a real bind if you find yourself with unexpected expenses. The reality is that unexpected expenses occur from time to time, no matter how hard we try and stay on top of a budget.
The First Step On The Road To Recovery
One option that you can turn to if you run into one of these unexpected expenses, and your credit is less than perfect, is getting an instant online payday loan. When you get an online payday loan or no teletrack payday loan, lenders generally do not check your credit rating to see if you have experienced financial difficulty in the past. They are not as concerned with your credit rating as a traditional lender would be, because you are generally required to write a post-dated check to them. The expectation is that the online cash advance payday loan company will cash the check on your next payday. This is how they get the security or collateral that assures you will repay the internet payday loan or no teletrack payday loan.
All that is generally required with a no teletrack payday loan or an instant online payday loan is that you are employed, have a checking account, and that you are at least eighteen years old. If you can meet these minimum requirements, you can easily be approved for a short-term internet payday loan or no teletrack payday loan.
Additionally, many online payday cash advance loan companies will allow you to get another no teletrack payday loan or instant online payday loan from them in the future, for a larger amount, if you repay a couple of loans on time and in full with them. In essence, you are establishing credit with the internet payday loan company.
Instant online payday loans or no teletrack payday loans are generally seen as a last resort and should only be used in an emergency situation. Online cash advance payday loans are not a way to fix long-term financial problems; they should generally be used to simply get you by until your next paycheck arrives. The lenders will charge you a fee for taking out the instant online payday loan, but this fee is a small price to pay if you have to have money now and you have no other means of getting your hands on some quick cash.
Monday, October 15, 2007
Consumer Advocacy Groups and Congress Consider: the Payday Advance Loan Product
Many of us have endured a financial hardship at one time or another; unfortunately, finding a way to dig your way out of debt can pose to be quite a challenge for people of all income levels.
In recent years, low cost payday loans have become an increasingly popular method to remedy immediate financial needs. However, the lack of government oversight on lenders who offer these short-term loans has caused a significant amount of concern for many consumer advocacy groups. In recent years, many politicians and consumer groups have taken steps to ensure that the practices of payday advance companies do not take an unfair advantage of those who are most in need.
A low cost payday loan, in the hands of a responsible individual, can be an excellent way to solve short-term financial problems. The borrower fills out a brief application; the lender then reviews this information to decide if the borrower will meet the terms of the payday advance. The qualifications for the average borrower are quite low since most lenders do not actually perform a credit check. The consumer receives their funds on the same day and is expected to repay the low cost payday loan when they receive their next paycheck; this is generally within one to two weeks.
Best When Used By Responsible Borrowers
This situation sounds rather harmless. Actually, it is an ideal situation for the responsible borrower. Unfortunately, there are a number of borrowers who do not consider the complications and penalties they can incur if they are not levelheaded about the terms of their payday advance.
There is no application fee for a low cost payday loan, thus lenders charge a transactional fee to keep the loan lucrative. For a loan of $100, the average borrower can expect to pay a fee, which roughly amounts to $18. That amount is negligible if you consider that the same borrower might pay $25-$35 if they are late in paying one of their bills or if they bounce a check.
The fees for a payday advance are extremely reasonable, when you weigh them against late payment fees and the dings to your credit rating that late payments can produce. Payday advance fees are easily manageable, as long as the borrower repays their loan on time. Those who prolong the repayment of their low cost payday loan, however, can accrue many extra fees resulting in significant financial penalties. Since the fee for a payday loan is calculated on a really short time window of generally one or two weeks, the loan fees will continue to increase exponentially until the payday advance has been repaid in full. This means that the initial predicted fee can double, triple, or possibly quadruple in very short order. If the borrower is too lax about repaying their loan, they could end up in deeper financial strains than they were in when they took the original loan.
When you consider that some borrowers are already experiencing serious monetary difficulties, logic dictates that this selfsame borrower might also fall behind on the repayment of their payday advance loan. In fact, there are some who use new low cost payday loans to repay earlier loans. Others have come to depend upon payday advance loans as a way to manage their monthly bills. Studies have shown that the average borrower uses this service eight to twelve times per year. This approach to payday advance loans (also known as cash advance loans, check cash advance loans, faxless loans, same day loans, no teletrack loans, etc.) is not financially prudent. In the hands of a responsible individual, a payday advance is considered a last resort method to resolve an immediate financial need.
Consumer Advocate Groups Have Approached Congress For Relief
Some states have developed new laws to protect consumers from the complications that can arise from the careless use of this type of service. It is important to understand that low cost payday loans are completely legal, but some of us need additional aid to prevent us from making ill-considered financial decisions. Until recently, there were few national restrictions upon this kind of service. In May of 2006, the House of Representatives proposed an amendment to the Truth in Lending Act to enhance state laws revolving around payday advance loans.
There are many reforms that the House would like to see in regards to payday advance loans. A number of these changes revolve around the contract which the borrower signs. According to the current bill making the rounds in Congress, the contract would highlight the maturity date for the payday advance loan, the fees associated with the loan stated both as an APR and as a projected dollar amount, and the penalties the borrower would incur if they should repay the loan after the agreed upon date. They would also like the lender to perform some sort of a credit check to ensure that they are lending this money to someone who will repay their debt in a timely manner. Additional changes that congress members would like to see include a cap upon the APR and a limit upon the number of loans a person can have within a specified amount of time.
These alterations to the average low cost payday loan agreement would benefit the consumer as well as the lender. If both parties are clear about their terms, it should ensure that the transaction would run smoothly. However, until this bill is finalized, it is important that consumers approach payday advance loans in a self-responsible manner. This means they should use the service sparingly, repay their debt by the loan's maturity date, and carefully review their contract with the lender before signing.
In recent years, low cost payday loans have become an increasingly popular method to remedy immediate financial needs. However, the lack of government oversight on lenders who offer these short-term loans has caused a significant amount of concern for many consumer advocacy groups. In recent years, many politicians and consumer groups have taken steps to ensure that the practices of payday advance companies do not take an unfair advantage of those who are most in need.
A low cost payday loan, in the hands of a responsible individual, can be an excellent way to solve short-term financial problems. The borrower fills out a brief application; the lender then reviews this information to decide if the borrower will meet the terms of the payday advance. The qualifications for the average borrower are quite low since most lenders do not actually perform a credit check. The consumer receives their funds on the same day and is expected to repay the low cost payday loan when they receive their next paycheck; this is generally within one to two weeks.
Best When Used By Responsible Borrowers
This situation sounds rather harmless. Actually, it is an ideal situation for the responsible borrower. Unfortunately, there are a number of borrowers who do not consider the complications and penalties they can incur if they are not levelheaded about the terms of their payday advance.
There is no application fee for a low cost payday loan, thus lenders charge a transactional fee to keep the loan lucrative. For a loan of $100, the average borrower can expect to pay a fee, which roughly amounts to $18. That amount is negligible if you consider that the same borrower might pay $25-$35 if they are late in paying one of their bills or if they bounce a check.
The fees for a payday advance are extremely reasonable, when you weigh them against late payment fees and the dings to your credit rating that late payments can produce. Payday advance fees are easily manageable, as long as the borrower repays their loan on time. Those who prolong the repayment of their low cost payday loan, however, can accrue many extra fees resulting in significant financial penalties. Since the fee for a payday loan is calculated on a really short time window of generally one or two weeks, the loan fees will continue to increase exponentially until the payday advance has been repaid in full. This means that the initial predicted fee can double, triple, or possibly quadruple in very short order. If the borrower is too lax about repaying their loan, they could end up in deeper financial strains than they were in when they took the original loan.
When you consider that some borrowers are already experiencing serious monetary difficulties, logic dictates that this selfsame borrower might also fall behind on the repayment of their payday advance loan. In fact, there are some who use new low cost payday loans to repay earlier loans. Others have come to depend upon payday advance loans as a way to manage their monthly bills. Studies have shown that the average borrower uses this service eight to twelve times per year. This approach to payday advance loans (also known as cash advance loans, check cash advance loans, faxless loans, same day loans, no teletrack loans, etc.) is not financially prudent. In the hands of a responsible individual, a payday advance is considered a last resort method to resolve an immediate financial need.
Consumer Advocate Groups Have Approached Congress For Relief
Some states have developed new laws to protect consumers from the complications that can arise from the careless use of this type of service. It is important to understand that low cost payday loans are completely legal, but some of us need additional aid to prevent us from making ill-considered financial decisions. Until recently, there were few national restrictions upon this kind of service. In May of 2006, the House of Representatives proposed an amendment to the Truth in Lending Act to enhance state laws revolving around payday advance loans.
There are many reforms that the House would like to see in regards to payday advance loans. A number of these changes revolve around the contract which the borrower signs. According to the current bill making the rounds in Congress, the contract would highlight the maturity date for the payday advance loan, the fees associated with the loan stated both as an APR and as a projected dollar amount, and the penalties the borrower would incur if they should repay the loan after the agreed upon date. They would also like the lender to perform some sort of a credit check to ensure that they are lending this money to someone who will repay their debt in a timely manner. Additional changes that congress members would like to see include a cap upon the APR and a limit upon the number of loans a person can have within a specified amount of time.
These alterations to the average low cost payday loan agreement would benefit the consumer as well as the lender. If both parties are clear about their terms, it should ensure that the transaction would run smoothly. However, until this bill is finalized, it is important that consumers approach payday advance loans in a self-responsible manner. This means they should use the service sparingly, repay their debt by the loan's maturity date, and carefully review their contract with the lender before signing.
Thursday, October 11, 2007
Deciding Whether A Payday Loan Is Right For You
Payday loans are often touted as a quick fix for a bad financial situation, letting you bridge the gap between running out of money and your next wage or salary coming in. The basic idea is that you can borrow a small amount of a few hundred dollars for a short period of a week or two, and repay the debt next time you get paid.
This sort of service can indeed be very useful if you've run out of cash for living expenses, or if you're faced with an unexpected bill or expense that you simply can't cover when you need to, but are payday loans always the good choice they're presented as?
First, we'll take a look at the undeniable advantages of these loans, before looking at the disadvantages, and possible alternatives you may be able to use if you decide a payday loan isn't right for you.
The lending criteria for payday loans are very generous indeed, and almost anyone who's employed and has a suitable bank account will likely be approved. This means that even people with terrible credit ratings should be able to get a payday loan, despite being rejected for nearly any other form of finance.
They are also easy to arrange, and you can often get the money in your account in a matter of days. Some lenders can even arrange an overnight transfer of the loan straight into your account the very next day, which is obviously very useful when you need cash in a hurry.
Finally, once you've been approved for your first loan, it's usually a very simple matter to 'refresh' your loan again if you find you need to make use of the facility if funds are again short in the future.
There are, however, two major downsides to payday loans which you rarely see mentioned in the advertisements and web sites promoting them. Firstly, they're very expensive compared to other forms of credit. Because the term of the loan is so short, a fee of 20% of the amount you borrow - which is about standard - will work out to be an eye-wateringly high APR.
The second problem is closely related: because they're so expensive, you can easily be left short of money the next month once you've cleared the loan and paid the fee. In this scenario, it's just too easy to refresh your loan again to cover the shortfall, resulting in more fees, and a never ending cycle of borrowing.
So, if you decide that a payday loan isn't a good choice for you, what alternatives do you have? The first one is making use of a credit card, if you have one. While credit cards are usually also pretty expensive forms of finance, they do allow you to spread the debt over a number of months rather than needing to be repaid straight away along with a fee.
Many bank accounts now offer an overdraft facility, which can also be used to cover a short term lack of money. The interest rate on an agreed overdraft is likely to be better than that of a credit card, but your bank may not approve your application. Beware of going ahead and overdrawing without your bank's agreement, as the charges they will levy in this case will be very expensive.
If neither of these options is available to you, and you have no other way of getting hold of money such as borrowing off family, then a payday loan may be the best option. Just ensure that you use it properly, and heed the warning sign it's giving you about the longer term state of your finances.
This sort of service can indeed be very useful if you've run out of cash for living expenses, or if you're faced with an unexpected bill or expense that you simply can't cover when you need to, but are payday loans always the good choice they're presented as?
First, we'll take a look at the undeniable advantages of these loans, before looking at the disadvantages, and possible alternatives you may be able to use if you decide a payday loan isn't right for you.
The lending criteria for payday loans are very generous indeed, and almost anyone who's employed and has a suitable bank account will likely be approved. This means that even people with terrible credit ratings should be able to get a payday loan, despite being rejected for nearly any other form of finance.
They are also easy to arrange, and you can often get the money in your account in a matter of days. Some lenders can even arrange an overnight transfer of the loan straight into your account the very next day, which is obviously very useful when you need cash in a hurry.
Finally, once you've been approved for your first loan, it's usually a very simple matter to 'refresh' your loan again if you find you need to make use of the facility if funds are again short in the future.
There are, however, two major downsides to payday loans which you rarely see mentioned in the advertisements and web sites promoting them. Firstly, they're very expensive compared to other forms of credit. Because the term of the loan is so short, a fee of 20% of the amount you borrow - which is about standard - will work out to be an eye-wateringly high APR.
The second problem is closely related: because they're so expensive, you can easily be left short of money the next month once you've cleared the loan and paid the fee. In this scenario, it's just too easy to refresh your loan again to cover the shortfall, resulting in more fees, and a never ending cycle of borrowing.
So, if you decide that a payday loan isn't a good choice for you, what alternatives do you have? The first one is making use of a credit card, if you have one. While credit cards are usually also pretty expensive forms of finance, they do allow you to spread the debt over a number of months rather than needing to be repaid straight away along with a fee.
Many bank accounts now offer an overdraft facility, which can also be used to cover a short term lack of money. The interest rate on an agreed overdraft is likely to be better than that of a credit card, but your bank may not approve your application. Beware of going ahead and overdrawing without your bank's agreement, as the charges they will levy in this case will be very expensive.
If neither of these options is available to you, and you have no other way of getting hold of money such as borrowing off family, then a payday loan may be the best option. Just ensure that you use it properly, and heed the warning sign it's giving you about the longer term state of your finances.
How to Make Wise Payday Loan Decisions
Payday loans go by many names. There's cash advance loan, check advance loan, post-dated check loan, deferred deposit check loan, and direct deposit advance. But by any other title, the principle is the same: a person needs a little bit of money to help them make ends meet until their next paycheck.
Take for example the fictional story of Aldan Devonshire. Aldan has just been hired as a sports journalist for the New York Post. He and his West Highland white terrier, Faust, squeeze into their '01 Corolla packed full with blankets, notebooks, computer peripherals-whatever would not fit into the U-haul mini-trailer. They arrive at their new apartment late Sunday evening, and after setting out a dish and bowl for Faust, Aldan goes to sleep.
On the way to his first day at the office, he suddenly remembers that his Geico payment is due by Friday, and he panics. Then Aldan remembers the electric bill at his old place is also due that week. His first check from the Post won't be cut for three weeks, and with all the costs of relocation and the deposit on the new apartment, there simply isn't enough money! He frenetically brainstorms, and just as he is turning off the interstate he sees a billboard announcing, "Fast Payday Loans." On his way home, he makes a thirty-minute stop at Serendipity's Payday Loans and leaves with $450 cash. Aldan and Faust will make it through until payday.
"...By Any Other Name..."
Payday loans are "easy," that is, the borrower doesn't need to have a superior credit history. Old pay stubs proving employment are generally all that is required, and some lenders will lend to anyone who does not appear on their blacklist of known "bouncers." For this reason, payday loans are considered sub-prime, and like all sub-prime lending, they are expensive.
To borrow $100 for two weeks, for instance, one might typically pay $15 in fees. In terms of APR, that's roughly 390%-in other words, exorbitant! Fast payday loans have high associated costs as results of two things: 1.) the minimal-to-no credit standards needed to take out a loan and 2.) the small size of the loan. Because of the minimal-to-no credit standards, the lender is taking an increased risk of not being repaid, and therefore he charges more. And because the loan is so small, the costs of processing the loan appear disproportionately high.
Top Ten Reasons for Taking Out a Payday Loan
(in no particular order)
Pay bills on time/cut-off notices
Christmas/gifts
Post bail
Unforeseen auto-repairs
Job transitions
Vacation
Relocation
Groceries
School clothes for the kids
Establish credit
There are alternatives to taking out a payday loan. One might be able to get a payday loan on a credit card, for example. Or, even better, some creditors will negotiate late payment options with their borrowers. Another good option is to consult a non-profit credit counselor, who can help you to negotiate a more feasible repayment plan.
But the best option of all is a preventive one, and though it is always being talked about, it is no small feat to practice. I'm talking about budgeting, the art of anticipation and discipline. For most of us, this "art" does not come naturally; rather, it requires hard work and a clear strategy.
Perhaps you have tried budgeting, perhaps you are even trying your hardest to plan ahead financially; but, if you do not have a clear strategy, your budgeting attempts are likely to fail. One possible strategy is to use spreadsheet software to create several virtual accounts where you can allocate money for designated purposes.
Aldan Devonshire, for instance, has a Geico account, a car payment account, a groceries account, and, yes, a Nintendo Wii account, as well as several others. By dividing up his bank balance among these several accounts, he can see exactly how much he has left for leisurely spending, and in this way, he avoids overspending.
Payday loans are a fast, easy way to obtain minimal amounts of money. They are designed for people in a financial pinch, who need just enough to make it until their next paycheck. As such, they are expensive in terms of fees and rate. While it is best to avoid such financial straits and to negotiate directly with creditors first, a payday loan can come in very handy indeed.
Tuesday, October 9, 2007
Comparing Payday Loans To Personal Loans
Payday loans have, in many people's eyes, a reputation as being an expensive form of credit. It's certainly true that the imposition of a flat fee of 10% to 25% of the loan amount works out to be a very high APR when you take into account the short term nature of the loan, and although taking out a payday loan may actually work out to be cheaper than some other forms of finance such as long term credit card debt, the interest rate will still be much, much higher than that of a personal loan. So why do people take out payday loans if they're so costly?
The first reason is simply speed. Many people resort to a wage advance when they literally don't have any money left at the end of the month, and yet have bills to pay and food to buy. A payday loan can be arranged on the same day you apply, with the cash in your account the next day. A personal loan simply can't compare to this - there will be complex forms to fill in, credit agreements to sign and return, credit checks to be carried out... the list goes on. When you need quick cash, a payday loan might well be the only answer.
Another advantage of these loans is the fact that you can borrow only a small amount if that is what you want, just enough to see you through your current cash flow problem. Most personal loans have a much higher minimum amount you need to borrow, and if you don't need that much then you're saddling yourself with unnecessary and unwanted debt.
A related point is that the repayment term of a payday loan is, by its very nature, a lot shorter. While the APR rate on a personal loan might appear to be much lower, by spreading the repayments over a longer term you may well end up paying more in interest overall. The combination of having to borrow a larger amount over a longer period is certain to cost more in the long run than taking out an advance of just the amount you need over as short a time frame as possible.
The final reason is that because of the way payday loans work, they're very easy to be approved for. People with all kinds of credit ratings are likely to have their applications accepted, which is certainly not the case with other forms of finance.
No personal finance expert would recommend taking out a payday loan lightly, especially if you get into the situation of having to renew the loan every month, but taking the above advantages into consideration it's easy to see why sometimes payday advances can actually be a perfectly prudent way of bridging a temporary financial gap.
The first reason is simply speed. Many people resort to a wage advance when they literally don't have any money left at the end of the month, and yet have bills to pay and food to buy. A payday loan can be arranged on the same day you apply, with the cash in your account the next day. A personal loan simply can't compare to this - there will be complex forms to fill in, credit agreements to sign and return, credit checks to be carried out... the list goes on. When you need quick cash, a payday loan might well be the only answer.
Another advantage of these loans is the fact that you can borrow only a small amount if that is what you want, just enough to see you through your current cash flow problem. Most personal loans have a much higher minimum amount you need to borrow, and if you don't need that much then you're saddling yourself with unnecessary and unwanted debt.
A related point is that the repayment term of a payday loan is, by its very nature, a lot shorter. While the APR rate on a personal loan might appear to be much lower, by spreading the repayments over a longer term you may well end up paying more in interest overall. The combination of having to borrow a larger amount over a longer period is certain to cost more in the long run than taking out an advance of just the amount you need over as short a time frame as possible.
The final reason is that because of the way payday loans work, they're very easy to be approved for. People with all kinds of credit ratings are likely to have their applications accepted, which is certainly not the case with other forms of finance.
No personal finance expert would recommend taking out a payday loan lightly, especially if you get into the situation of having to renew the loan every month, but taking the above advantages into consideration it's easy to see why sometimes payday advances can actually be a perfectly prudent way of bridging a temporary financial gap.
Sunday, October 7, 2007
The Advantages of Payday Advance Loans
Payday advance loans are becoming increasingly popular for a number of reasons. One of these reasons is that the internet has helped to reduce the costs of borrowing money quite considerably. Where before finance companies would have to incur significantly more overheads from their brick and mortar operations, now these have been slashed with the introduction of their web-based businesses.
Despite this, payday loans and cash advances are not suitable for everyone. An example would be if you were looking to buy a car for example. In that instance financing the purchase through a bank loan would be a far more suitable arrangement. Payday cash advances are also not suitable for those that do not expect to have the money in place to finance a purchase within a short period of time. An example would be if a person was not expecting to have the liquidity to finance a purchase within the next few months: in that instance a bank loan would be a more advisable financing option.
Payday cash advances are becoming increasingly popular for a number of reasons, not just the relatively low cost of borrowing that is now in place. One of these reasons is the speed at which money can get in the hands of the borrower. Should a person have the essential paper work and information to prove their validity for a loan; then a person can expect to have the money in place within a time frame of significantly less than a week. This is much faster than other financing options and can help the borrower to get ready cash at the time that they need it the most. In most cases all a person will need is evidence of employment in the form of a wage slip, and then they will be in a position to get their money straight away.
The friendly approach adopted by employees of cash advance companies is also an important reason why people are opting to approach payday loan services when they are in need of money. From a survey conducted in early 2005, people felt that they were being unfairly judged when they approached their bank for money; however felt that employees of cash advance companies were less judgmental and far more appreciative of their situation. This, along with other reasons can be a real advantage of choosing a payday loan provider.
Payday cash advances are also becoming increasingly popular as a result of credit card companies charging very unreasonable fees for cash advances, feeling that they had the opportunity to do so being the only major resource in the marketplace. Today credit card companies charge around 3% with a minimum fee of $15. Many borrowers feel that this rate is unfair and is merely a means of taking advantage of people who are in a desperate situation. For this reason many are now finding that they are able to get a far more competitive rate from a cash advance provider.
Sydney Cash Advance
Applying for an online cash advance is an alternative to a bouncing check, pawning personal property or borrowing money from family and friends. It also helps you to protect your credit rating by allowing you to make your bill payments on time. An emergency situation requires emergency cash advance especially if the alternatives mentioned are impractical or embarrassing. When the financial crisis involves something of much importance like life, a job or credit standing, the situation can be aptly termed as an emergency.
Applying for a Sydney cash advance can pay for unexpected medical bills, car repair expenses or to fund a check that has been previously committed. Emergency situations can happen even to individuals who practice financial planning. These are the people who have money saved from each paycheck in preparation for financial shortfalls. There comes a time when a periodic need for short term financial assistance arises. An emergency cash advance provides valuable assistance when used in a responsible manner.
The cash advance industry knows that quality borrowers hold the key to keeping fees low and profits high. This scenario is a win-win situation for both the borrowers and the lenders as consumer needs are met with minimum fees while lender operation is ensured with a positive income. Those who have been continuously deprived of access to traditional credit are not necessarily bad and irresponsible borrowers but may just be categorized as high-risk for failure to provide requirements that will help them to be categorized otherwise.
Traditional banks can likely charge high fees for small, short-term transactions. They are also likely to turn their backs on the type of borrower who patronize cash advance to pay bills to avoid bounced check charges or loss of basic services. The banking industry is not even likely to open branches in lower income areas where a cash advance borrower typically resides. Emergency cash advance providers have filled in the gap left by the banking industry. Consumers are being asked to pay for a given service and they do so willingly because of the relevance of the service in their everyday lives.
There are a lot of products and services that are introduced in the market to make people's lives much easier. Applying for a cash advance in Sydney is one of these and it can be so when it is used to take care of a one-time situation instead of a long-term situation. It works to the borrower's benefit as it allows unexpected expenses to be taken cared of immediately rather than waiting for the next payday where it might be too late. It wouldn't work for people who live from paycheck to paycheck with no money being left-over. A good financial plan would include borrowing only the amount needed and making a budget that includes for its repayment when due.
Friday, October 5, 2007
Are Faxless Payday Advances Easy To Get?
Why the faxless payday advance sounds so attractive? Because it means fast money. No need to bother with filling in application forms and faxing them to the lending institutions. It's all already done! Your pre-approved cash advance limit enables you to draw required funds instantly. You can do it using the online banking facilities, ATM terminal or just approaching the cashier at your bank. Normally, you'd use your credit card to access these funds; being aware of the daily limits applicable to the sum and number of withdrawals.
The fact that the faxless payday advances are so easily accessible, shouldn't make it every day's source of money. Only in rare circumstances should these funds be drawn upon. If nothing else, excessive bank fees should be of a sufficient deterrent.
There is no interest free period for the faxless payday advances, with fees higher than for other credit card transactions, which means interest charges start from the day of the availing until the advance is paid back. The reason for the high charges and additional fees is that the cash advance facility carries a higher risk than normal purchases because there is a higher chance of default and delinquency.
A form of the easy faxless cash advance that has been growing by leaps and bounds is the payday loan or paycheck advance that is designed as a stopgap measure between paydays. This bad credit cash advance is the bulwark of low-income, service-sector workers with poor credit rating who live from paycheck to paycheck and have no extra funds to cover unexpected expenses. However, the finance charges associated with same day payday advance is staggering, as much as 911% (annualized) for 7 days, making it the most expensive instrument for debt financing.
As the demand for faxless and other cash advances grows, the businesses involved in money lending are growing with a fast rate indeed. Only a few years ago, nobody in America heard about Cash 'N Go or Check Into Cash organizations. Today, they have grown to become serious players on the personal finances arena. Americans need their services, to get from one payday to the next. The less positive side of the boom is that many people just lose their ability to manage their finances better. Why should they, if they can get an injection of cash today?
For some, there's a moral dilemma facing payday cash advance providers. They stand accused of profiting from the poorest members of the society. To some degree, it may be true. Banks try to steer clear of these issues, by not offering payday cash advance facilities. One thing needs to be mentioned: if not for the cash advance industry, operating legally and in line with the consumer code, there would always be loan sharks taking advantage of those in need.
The US Military enjoys a special faxless payday advance system. The idea is, to help its serving members in time of need, with easily obtainable cash. Their families are entitled too, to apply and enjoy these benefits. As the interest rates charged are significantly below those of the mainstream lenders, it's a very attractive money saving solution. The only requirement is for the member to be on active military duties.
Quite unusual form of a cash advance is a lending facility that enables anybody who is a plaintiff in any type of lawsuit, to ask for the Pre-Lawsuit Settlement. The sum that can be obtained this way differs, depending on the amount of possible settlement. In some large compensation cases, it can amount to hundreds of thousands of dollars. Still, the money may be needed straight away, to pay for the basic expenses, including legal help.
There are companies that specialize in faxless cash advances, sometimes as fast as 72 hours depending on the merits of the case, and the financial company absolves the borrower from liability in case the lawsuit does not prosper. This means the borrower does not have to pay the loan back if no money is forthcoming as a result of the litigation. However, if the litigation is successful, the loan is payable with a cash advance fee of 15%. A penalty that can be avoided, by reading the fine print of the contractual terms.
The fact that the faxless payday advances are so easily accessible, shouldn't make it every day's source of money. Only in rare circumstances should these funds be drawn upon. If nothing else, excessive bank fees should be of a sufficient deterrent.
There is no interest free period for the faxless payday advances, with fees higher than for other credit card transactions, which means interest charges start from the day of the availing until the advance is paid back. The reason for the high charges and additional fees is that the cash advance facility carries a higher risk than normal purchases because there is a higher chance of default and delinquency.
A form of the easy faxless cash advance that has been growing by leaps and bounds is the payday loan or paycheck advance that is designed as a stopgap measure between paydays. This bad credit cash advance is the bulwark of low-income, service-sector workers with poor credit rating who live from paycheck to paycheck and have no extra funds to cover unexpected expenses. However, the finance charges associated with same day payday advance is staggering, as much as 911% (annualized) for 7 days, making it the most expensive instrument for debt financing.
As the demand for faxless and other cash advances grows, the businesses involved in money lending are growing with a fast rate indeed. Only a few years ago, nobody in America heard about Cash 'N Go or Check Into Cash organizations. Today, they have grown to become serious players on the personal finances arena. Americans need their services, to get from one payday to the next. The less positive side of the boom is that many people just lose their ability to manage their finances better. Why should they, if they can get an injection of cash today?
For some, there's a moral dilemma facing payday cash advance providers. They stand accused of profiting from the poorest members of the society. To some degree, it may be true. Banks try to steer clear of these issues, by not offering payday cash advance facilities. One thing needs to be mentioned: if not for the cash advance industry, operating legally and in line with the consumer code, there would always be loan sharks taking advantage of those in need.
The US Military enjoys a special faxless payday advance system. The idea is, to help its serving members in time of need, with easily obtainable cash. Their families are entitled too, to apply and enjoy these benefits. As the interest rates charged are significantly below those of the mainstream lenders, it's a very attractive money saving solution. The only requirement is for the member to be on active military duties.
Quite unusual form of a cash advance is a lending facility that enables anybody who is a plaintiff in any type of lawsuit, to ask for the Pre-Lawsuit Settlement. The sum that can be obtained this way differs, depending on the amount of possible settlement. In some large compensation cases, it can amount to hundreds of thousands of dollars. Still, the money may be needed straight away, to pay for the basic expenses, including legal help.
There are companies that specialize in faxless cash advances, sometimes as fast as 72 hours depending on the merits of the case, and the financial company absolves the borrower from liability in case the lawsuit does not prosper. This means the borrower does not have to pay the loan back if no money is forthcoming as a result of the litigation. However, if the litigation is successful, the loan is payable with a cash advance fee of 15%. A penalty that can be avoided, by reading the fine print of the contractual terms.
Wednesday, October 3, 2007
Alternatives To Consider Before Taking Out A Payday Loan
There's no doubt that a payday loan can provide a valuable injection of cash at the end of the month when things are getting tight, but there's also no denying the fact that such loans aren't really a good choice for long term borrowing. After all, they are designed to be used as a temporary sticking plaster to get you through a financial crisis, and not as a regular part of your budgeting strategy.
The problem is that in some cases, it can be all to easy to fall into the trap of needing to take out a new loan every month, merely to cover the repayment of the previous loan, along with the sometimes hefty charges associated with it. Although in many cases a payday loan may well be the right choice, in others an alternative form of finance may be a better bet. So what other options might be available to you?
The majority of people these days have access to one kind of bank account or another, and depending on your circumstances and credit rating you may be able to arrange an overdraft with your bank. Of course, a fee will apply, along with interest charges, so you'll need to calculate how much this option will cost you and whether it will be cheaper than a payday loan. The advantage of an overdraft is that you don't need to 'renew' it each month, you can just slowly reduce the amount you are overdrawn by. This means that you can spread your repayments over time rather than having to repay the full debt on your next payday.
Another, and perhaps better, alternative is to make use of a credit card balance transfer facility. Many credit cards will let you transfer a balance from a bank account, effectively letting you deposit your card's credit limit directly into your account. Although a fee of around 3% will usually apply, this will be a one off fee, and if you can get a card with a long 0% period then you can slowly reduce the balance on the card without any extra charges. This will work out to be much cheaper than a long string of renewed payday loans, but you will need to have a decent credit rating for this strategy to be available to you.
Should your credit rating not stretch to a new piece of plastic, then try and find out if there's a credit union in your area. These non-profit organizations can arrange low value loans at much more attractive rates of interest, and will usually have much less stringent credit rating requirements than finance from banks and other institutions. Consult with Citizens Advice or a similar charity to see if there's a credit union near you and whether you're eligible to join.
These are just some of the alternative ways of raising finance that you might consider before committing to a payday loan. If after looking at these options you still feel a wage advance is your best option then by all means apply at one of the many sites out there on the web - at least you'll be doing so fully aware of the benefits and risks involved.
The problem is that in some cases, it can be all to easy to fall into the trap of needing to take out a new loan every month, merely to cover the repayment of the previous loan, along with the sometimes hefty charges associated with it. Although in many cases a payday loan may well be the right choice, in others an alternative form of finance may be a better bet. So what other options might be available to you?
The majority of people these days have access to one kind of bank account or another, and depending on your circumstances and credit rating you may be able to arrange an overdraft with your bank. Of course, a fee will apply, along with interest charges, so you'll need to calculate how much this option will cost you and whether it will be cheaper than a payday loan. The advantage of an overdraft is that you don't need to 'renew' it each month, you can just slowly reduce the amount you are overdrawn by. This means that you can spread your repayments over time rather than having to repay the full debt on your next payday.
Another, and perhaps better, alternative is to make use of a credit card balance transfer facility. Many credit cards will let you transfer a balance from a bank account, effectively letting you deposit your card's credit limit directly into your account. Although a fee of around 3% will usually apply, this will be a one off fee, and if you can get a card with a long 0% period then you can slowly reduce the balance on the card without any extra charges. This will work out to be much cheaper than a long string of renewed payday loans, but you will need to have a decent credit rating for this strategy to be available to you.
Should your credit rating not stretch to a new piece of plastic, then try and find out if there's a credit union in your area. These non-profit organizations can arrange low value loans at much more attractive rates of interest, and will usually have much less stringent credit rating requirements than finance from banks and other institutions. Consult with Citizens Advice or a similar charity to see if there's a credit union near you and whether you're eligible to join.
These are just some of the alternative ways of raising finance that you might consider before committing to a payday loan. If after looking at these options you still feel a wage advance is your best option then by all means apply at one of the many sites out there on the web - at least you'll be doing so fully aware of the benefits and risks involved.
Tuesday, October 2, 2007
Payday Loan by Phone
Do you need money - and need it fast? Do you not want the hassle of going back and forth faxing documents and having multiple conversations with operators? If you answered yes to these questions you may be a candidate for a payday loan. http://www.paydayloanbyphone.net/ Payday Loan By Phone operators are standing by to take your calls. If you're earning a minimum of $1,000 per month and have your paycheck posted to your account every month, you automatically qualify for a payday loan from paydayloanbyphone.net.
What is a Payday Loan?
A payday loan is a http://www.checkintocash.com/ cash advance ranging from a hundred to a thousand dollars (depending on the state) and is usually used as an advance to your next paycheck. These loans help cover unexpected expenses that come up between now and your next pay period. Generally, payday loans are repaid by the next payday. The payday loan company does not charge interest but they do charge a fee, anywhere from $10 - 30 per hundred borrowed. A payday loan is usually a more cost effective way to borrow money than other alternatives.
Call or Apply Online
Paydayloanbyphone.net allows you to apply over the internet on the phone. The operator will ask you to fax in a pay stub, your most recent bank statement and a void check. The loan will be approved in a matter of minutes and directly deposited into your bank account by the next morning. We take care of the return payment to us. We'll directly withdraw the amount owed to us on the due date. You don't have to hassle with sending a check or paying a bill. We're experts, we make the entire process simple and quick.
Payday Loan Apply By Phone
Online payday loans can get cash to your account in the shortest of time
possible any where. Now to get a payday loan, apply by phone, through Paydayloanbyphone.net. Paydayloanbyphone.net processes your application as you speak to them. The loan amount is deposited directly into your checking bank account and you can start using the money instantly.
Who qualifies for a payday loan?
Anyone who is a citizen of the US with a valid checking account can apply for a payday loan. Paydayloanbyphone.net offers http://www.checkintocash.com/ payday loans up to 500 dollars. They are nit interested in where you use the money just that you return it by the next payday. It may take up to 24 hours to get a first time applicant processed and the cash deposited into the bank, however, return applicants who have already passed the verification procedure will be given a username and password and they can use it to get a payday loan online in a matter of two minutes.
In order to get a payday loan you need to either fill in a form online or download it and fax the same to paydayloanbyphone.net on 1-877-262-CASH. You need to send in your latest salary slip along with the latest bank statement and the loan application will be processed. The cash will be deposited in your checking account within a day. No system can boast of being this fast and efficient.
How Do I Repay The Loan?
The payday loan amount is automatically debited from your bank account on the next payday. You are informed at the time of application about the amount you will need to repay the payday loan company. So the system is very transparent and hassle free.
To get a payday loan, Complete the application online or apply by phone on 1-877-262-CASH and your application will be processed as you speak.
What is a Payday Loan?
A payday loan is a http://www.checkintocash.com/ cash advance ranging from a hundred to a thousand dollars (depending on the state) and is usually used as an advance to your next paycheck. These loans help cover unexpected expenses that come up between now and your next pay period. Generally, payday loans are repaid by the next payday. The payday loan company does not charge interest but they do charge a fee, anywhere from $10 - 30 per hundred borrowed. A payday loan is usually a more cost effective way to borrow money than other alternatives.
Call or Apply Online
Paydayloanbyphone.net allows you to apply over the internet on the phone. The operator will ask you to fax in a pay stub, your most recent bank statement and a void check. The loan will be approved in a matter of minutes and directly deposited into your bank account by the next morning. We take care of the return payment to us. We'll directly withdraw the amount owed to us on the due date. You don't have to hassle with sending a check or paying a bill. We're experts, we make the entire process simple and quick.
Payday Loan Apply By Phone
Online payday loans can get cash to your account in the shortest of time
possible any where. Now to get a payday loan, apply by phone, through Paydayloanbyphone.net. Paydayloanbyphone.net processes your application as you speak to them. The loan amount is deposited directly into your checking bank account and you can start using the money instantly.
Who qualifies for a payday loan?
Anyone who is a citizen of the US with a valid checking account can apply for a payday loan. Paydayloanbyphone.net offers http://www.checkintocash.com/ payday loans up to 500 dollars. They are nit interested in where you use the money just that you return it by the next payday. It may take up to 24 hours to get a first time applicant processed and the cash deposited into the bank, however, return applicants who have already passed the verification procedure will be given a username and password and they can use it to get a payday loan online in a matter of two minutes.
In order to get a payday loan you need to either fill in a form online or download it and fax the same to paydayloanbyphone.net on 1-877-262-CASH. You need to send in your latest salary slip along with the latest bank statement and the loan application will be processed. The cash will be deposited in your checking account within a day. No system can boast of being this fast and efficient.
How Do I Repay The Loan?
The payday loan amount is automatically debited from your bank account on the next payday. You are informed at the time of application about the amount you will need to repay the payday loan company. So the system is very transparent and hassle free.
To get a payday loan, Complete the application online or apply by phone on 1-877-262-CASH and your application will be processed as you speak.
Installment payday loans information
Installment payday loans are interim cash providers. These loans are specially designed out to assist those salaried residents of the UK , who are in deep cash crunches. On applying online borrowers get the required sum in 24 hours or less. With the amount, borrowers are wish free to invest the amount as they wish to. These loans are specially configured out to assist those who are residents of the UK and have crossed the age of 18 years at the time of applying for payday loans.
Installment payday loans are loans that are repaid to the lender with a post-dated check from the borrower's checking account. By providing the lender with a post-dated check, a borrower gives his guarantee that the money will be paid back. And, when a borrower receives his monthly income check, the post-dated check to the lender is cashed, is paid back to the lender with the loan amount plus a fee with it. There is a fee attached to these transactions, and a post-dated check amount will usually include that fee.
Importantly, before entering into any installment payday loans agreement with a lender, individuals are advised to cautiously consider about the deal once. These loans are configured to those who are in desperate need of money.
Individuals wish to examine these loan transactions should consult with several money lending authorities, and make comparison on shopping for the cheapest installment payday loans fees. Seek advice from any financial expert, or access online. There are many financial experts available online round the clock, who can be trusted to guide with sound advices when money matters become critical securing one of these short-term installment payday loans.
installment payday loans are helpful in shorting out to fight away from any emergent cash crunch. Borrowers get amount ranges in between £ 100-£ 1, 000, and amount touches the beneficiary hands in 24 hours or less. Borrowers are free to invest the amount as they wish to.
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