Category Archives: Payday Loans

How to Be Responsible When Using Payday Loans

Payday loans are growing in popularity for many different reasons. Payday loans are easy to apply for, they feature a short repayment period, they have fairly low interest, and they offer an approval process that is not based on credit. However, because payday loan companies do not check your credit score and this means they hand out loans to just about anyone. It’s important to be responsible when using payday loans. If you’re not, you could easily end up in debt and fall victim to the payday loan trap, a devastating cycle that requires more loans to pay off your initial loans.

Payday Loans1 – Prepare a repayment strategy before you ever apply for the payday loan

It’s important to understand that online payday loans are considered short-term financial aid. You will have to start paying back the loan rather quickly, so if you aren’t prepared for this, it’s going to take you by surprised. Payday loans earn their name because they are typically paid back when “payday” arrives. Within just two to four weeks of receiving the loan, you are expected to pay it off in full. If you can’t afford this, then the only option you have is to take out a second loan to repay the first, which will create more debt for you and the struggle will only reoccur.

2 – Know the interest rate that you will be expected to pay

Interest rates for payday loans can be costly. The longer it takes you to pay off the loan, the more interest your loan will accrue. Be sure to review the interest rate on your loan and understand how much extra money you will be expected to pay. Interest is paid on top of the amount of money you have to repay on your loan.

3 – Plan the day you take out the loan based off of when you get paid from your job

It’s important to get paid from your job around two to four weeks after you have taken out the loan. This will give you enough cash to pay off the loan within a reasonable amount of time. Of course, you need to talk with the payday loan company so that you can review the repayment terms. You should familiarize yourself with the repayment requirements prior to taking out the loan so that there are no surprises.

4 – Spend the money from your payday loan wisely

The money that you get from your loan can be spent on whatever you choose to use it for, but it’s advisable that you use it for a wise purchase. Most customers use their payday loans for debt repayment, credit card payments, or paying off bills. This will improve your financial standing considerably, so using the payday loan for something like this makes a lot of sense. Even if the loan puts a little more debt on your plate and you have to sacrifice to pay it off, you should be on much better ground financially, once the loan has been repaid in full.

Are payday loans for everyone?

We hear a lot about payday loans nowadays, and the news is always dramatically opposite. Either a company describes how attractive their cash advance product is, or a journalist calls such operators loans sharks in a suit. So what is the truth about payday loans?

Payday loansThe first obvious thing we can observe about this question is the following. Let’s say someone is employed but he is a little tight on cash. Maybe he recently purchased a house with a mortgage so that he uses a big chunk of his income to repay that loan. After paying his expenses like food and entertainment, he has little left to spend each month, and he does not save as all his savings were put into the deposit for the house. One day his car needs repair but he does not have enough money in his account to pay for such an unexpected bill. But he needs the car to go to work as he lives in a remote area.

Where can he find the few hundred dollars or pounds he needs so that he does not jeopardize his job? Not at the bank as it often takes time for a loan to be arranged and the money to reach your bank account. On the contrary you will never have to wait more than a few hours to get the cash from a payday loan institution. Anyway banks do not offer much in terms of these cash advance loans. They may lend you a consumer loan if you want to buy a new refrigerator for instance, but they are not going to lend you a dime to pay for fixing up your automobile. The only way to get such cash on short notice unless you have wealthy friends is to get a payday loan.

On the other hand opponents of these modern financial products argue that the rates are outrageous which can lead to a downward spiral of increasing debt for the financially disadvantaged who will not be able to repay on time.  The UK as well as a number of US States is in the process of implementing laws that would impose a cap on these loans, indirectly putting a lot of payday loans operators out of business.

In addition journalists love to tell sad stories of low income people who took a 500 pounds payday loan and ended up thousands of dollars in debt a few months later, as the fees kept on adding  due to their inability to repay the loan in full on due date.

There is certainly some truth on both sides of the argument. But one thing to remember is that if there are billions of dollars lent this way every year, it means there is a large demand for them. Some people may have a genuine need for a short-term cash advance, and there is no need to make everyone’s life harder by removing the lenders who offer such loans when we need them fast.

More info: http://en.wikipedia.org/wiki/Payday_loan

What You should Know about Fast Payday Loans

For individuals who need cash now, companies that provide quick payday loans are often the best option to take. If you need cash quick loans urgent, you no longer need to rely on your friends and family. Payday loans are a financial project that is designed to help you out times of urgent financial need.

It’s understandable that many consumers still have concerns about payday credit facilities that are so widely advertised these days. Many borrowers are unsure whether or not to apply for and obtain the loans, as they are worried about the high cost of these transactions. Thus, it might be helpful if we can clear up a few misconceptions about what a payday loan is.

What are fast payday loans?

Fast cash loans today are available to borrowers who need cash now. It is important that there is some way of obtaining money when you need it most, for example, in times of emergency. Loan providers aim to approve and provide financial assistance in the quickest way possible. This is made possible by borrowing against your next wage packet.

In order to obtain a payday loan, you will need to meet the requirements set down by the lender. The borrower should be citizen of the UK, and be at least 18 years old. Most companies will require that you have a bank account, and will likely ask to see proof of employment, which can be part-time or full-time.

The application form can be downloaded and completed online, in order to make the process more convenient. Processing is always fast, and in some cases may even be instant. The amount can be handed over personally in cash, provided in the form of a cheque, or transferred to your bank account electronically.

The repayment process

Payday loan companies are very particular about the repayment arrangements, in order to protect themselves and you. The money will only be handed over. If the borrower agrees to the repayment requirements, which usually means that you agree for the repayment amount to be deducted by direct debit from your bank account on your next payday.

The lender will inform you of the interest rates and any other fees that will be automatically deducted from your bank account on the agreed date. The overall amount depends on the interest rate applied. It varies among different lenders. However, in most cases, a £25 interest charge will be applied to a £100 loan, so that the overall repayment to be deducted from your bank account will total £125.

Using broker services

The most common way to obtain a payday loan is by using the services of professional brokers, who are able to match you up with the best lender to meet your needs. The advantage of using a broker is that they will usually complete all of the tedious paperwork on your behalf.

Payday loans facilitated through brokers are becoming more popular, because they are able to make sure that you don’t experience any hassle during your application, thus increasing your chances of being accepted for a loan. In addition, brokers can also provide guidance when choosing the best payday loan products.

More info: http://en.wikipedia.org/wiki/Payday_loans_in_the_United_Kingdom

Important Facts about Payday Loans

When you are in need of urgent cash, payday loans can be of great help to fulfill your cash needs during such emergency situations. The amount of the payday loan that you borrow has to be paid back after you have received your next paycheck or within 14 days. Or else, you can repay the borrowed amount within 30 days. The sooner you pay the cash advance, its better because these payday loans come at very high interest rates.

The rate of quick cash advance in some of the states in US is termed as “fees vs. interest”. The rate is calculated on the basis of the number of days you have borrowed the loan for. When people have some kind of urgent situations, they find the payday loans to be of great monetary help. The interest rates of the payday loans are much higher than the conventional loans. Most of the payday loan companies in Iowa will charge you a fee of $15 to $30 for every $100 borrowed.

There are many companies that offer these payday loans. There are certain facts that you should know about these loans before applying for one.

Payday loan companies are governed by the state laws and the laws are very strict in some states. You should be well aware of the terms and conditions before borrowing the payday loans.

In some states in US, you can make partial payments without paying the extra interest.

As per the state laws, you can apply for a maximum of two separate advances at the same time in some states.

The maximum amount borrowed can not be more than $500 in some states.

The borrowed amount should be repaid back within 31 days.

As per some state laws, the loan term cannot be extended.

When you need urgent cash and there is not much left in your checking account, you can apply for these payday loans without asking for any help from family members or friends. Payday loan companies do not do a credit check. They happen to be hassle free and the application process is very simple.

How to qualify for a no teletrack payday loan?

Many people consider a no teletrack payday loan to meet their urgent cash requirements. Traditional loans can take a long time for getting approved and by that time, your need to have urgent money may already have taken a severe turn. An instant online paycheck advance can serve your immediate requirements, but be aware that you will be paying a high cost for this service. Now, you may like to know more about these online personal advances?

Payday loans are money advances often offered to people who are doing jobs and get their paychecks. The concept of these loans has been introduced keeping in mind the paycheck to paycheck living conditions of middle class people in employment. Sometimes, these people have to arrange funds urgently in a short notice, especially in the middle of the month. So, it becomes pretty hard when a situation like this arises. Sometimes, family members or friends offer a helping hand but in most of the cases, the luck seems to be tough because they themselves are in the same boat. In fact, it is pretty difficult to arrange extra funds in the middle of the month. This is the time when most people rely on paycheck advances.

  • What’s The Approval Criteria?

There aren’t too many conditions to get approved for a teletrack payday loan. You can easily get approved for the loan if you meet the following criteria.

  1. You must be a legal American citizen over 18 years of age.
  2. You must have a regular job that pays at least $1000 a month.
  3. You must have an active checking account in a bank.

You can qualify for the loan if you can fulfill these requirements. There’s no need to put any collateral to get a no teletrack paycheck advance. You also don’t need to send any documents for verification purpose. So, you will get the payday loan transferred to your bank account within the next business day.

  • Bad Credit Quick Cash Loans:

People with bad credit history often consider these kinds of loans to be their best solution to their urgent requirements. These loans are for a very small amount ($100-$1000 generally) and are generally lent for just 1-4 weeks and are secured against your paycheck. The lenders offering such loans cover their risk factor by charging exorbitant interest rates from the borrowers. These rates can range anywhere between 15% to 30% for 2 weeks. There is no credit check or teletrack required on applications for these advances.

If you are considering taking a no teletrack payday loan and are 100% sure to pay back within the next payday, then only you should opt for such high interest advances. Also, you should make sure that you don’t get habitual in borrowing these loans. These cash advances come at very high interest rates from the traditional loans and should be considered only when you don’t have any other options left and the emergency is just unavoidable.

How to pay off your payday loans?

Most people in US use payday loans for meeting their short term or urgent needs. Are you one of them and trapped under payday loan cycle. Sometimes, people take new payday loans to pay their existing loans and it keeps repeating until it gets to an overwhelming situation. Don’t take a payday loan in the hopes of paying another loan that is current. People in such situation are already going through a crisis and taking another loan might make things worse. It will be hard to make ends meet. Now the question is how to break this payday loan cycle and pay it off? Follow these five practical ways and you will see a clearer picture of coming out of the payday loan trap.


1) Stand against the payday loan industry: Every state has certain laws on payday loans. For example, in Oklahoma, borrowers who have taken out payday loans in three consecutive times can repay their loan balance in four equal installments. This is a good opportunity to break the loan cycle and pay them off. Take advice from your local attorney general’s office. They should be able to tell you more about your state laws and how to handle your overwhelming debt issues.

2) Pay off the payday loans at the earliest: If you have borrowed a payday loan, it’s important that you pay back the principal amount and the accrued interests. Make arrangements to pay maximum portion and the amount should go towards the principal. Don’t pay a small amount that goes only towards the interests and fees. You should figure out to pay back from your next pay check without getting a new loan. You might see yourself in a tight spot but ultimately you will be doing something to get this big burden off your shoulder. There is no harm if you have to live in crisis for a temporary period.

Some ideas to cash out money to pay loans:

  • Have a yard sale or garage sale. Put anything that can be sold such as furniture, clothes, gifts, watches, jewelry and etc.
  • Sell a few things in your local newspaper’s free ads or sell them online at eBay.
  • If you are under employment, you may discuss with your employer to get an advance salary and repay it over several pay periods.
  • Borrow from your family or relatives to pay off your payday loan and repay them over several pay periods.
  • Get a second job or part-time job to earn extra money to clear your debt.
  • Cut down your monthly expenses and optional spending such as entertainment, clothing and vacation to save more money to pay into your debt.

3. Get Help from Credit Counseling Service: You must take assistance of a professional expert to come out of your debts. There are some Consumer Credit Counseling Services (CCCS) that are non-profit counseling centers. They can offer you financial advices based on your individual situation. He will analyze your financial situation and figure out how much you will be able to afford in repayments. The counseling can turn out to be helpful because you will have a variety of options to choose from and walk on the path to being debt free. They might offer you some kind of repayment plan and stick to it if you decide to go for their program. You don’t have to enroll into their services but if you decide to do so, they might charge you a fee to meet up the cost of their services.

Summary

Don’t stay isolated with your payday loan problems. Discuss about your situation with your near and dear ones or if you need to take professional help, go for it. When you are able to work out your own ways to come out of the payday loan cycle, you will see yourself in a better situation and become free from payday loans sometime in the near future.