Payday loans are small cash advance loans. Usually the loan is secured by the borrower writing out a check that is dated for their next payday, as collateral. These types of loans can be very helpful in some situations, although extreme caution should be taken when deciding to borrow money this way.
Payday Loan Fees
For a fee of between $15 and $50, the borrower can get money for an emergency or money shortage to tide them through until their payday. If borrowers decide to roll what they owe over for another fortnight, they are responsible for another fee at the same rate.
Who Needs A Payday Loan?
The need for this type of service has arisen since banks and other lending institutions generally don’t lend small amounts of money on these terms. The trouble with a payday loan is the interest rates they offer is extremely high, the amount of interest is calculated at around 300% per annum.
Often borrowers fall into the trap of borrowing money from a payday loan provider every fortnight, in order to stretch their income further, in this case a payday loan is a very dangerous choice. People who get caught up in the trap of borrowing money from these companies, and rolling the money over more than once run the risk of getting further in to debt.
The RIGHT Way To Use A Payday Loan
The only way to borrow money from a payday loan company is to understand the associated costs, and only do it in an emergency, where the option of borrowing money from friends, colleagues or family, and giving them a forward dated check is not available.
Care should be taken to make sure that the company is legitimate; one of the leading causes of fraud is from companies posing as payday loan companies. Find out where the company is situated, ask for their company phone number before signing up, and try ringing it. Look over the Internet for reports or information on the company, and from other people who have lent money from them.
Be very wary of payday loan companies that ask for a fee before forwarding money to the borrower, and avoid giving out bank account numbers. Borrowers should opt for wire transfers from western union rather than give out bank account numbers and details as they run the risk of a fraudulent company accessing their accounts and creating further money problems. Some payday loan companies are scams, and the borrower lends money at their own risk, so care does need to be taken to choose legitimate companies.
The best way to deal with a payday loan company is to understand how their fees and charges work. Know exactly how much it is going to cost you to borrow the money, and what will happen if you can't pay it back after payday. Be very choosy with payday loan companies, some offer you a better deal than others.
Sunday, April 12, 2009
Sunday, April 05, 2009
Why would you choose not to get a payday loan?
Now that we’ve looked at the convenience of payday loans, let’s take a fair look at the disadvantages. Throughout the U.S., governments on every level are looking at payday loan outlets with increasing concern. Many people think that they take advantage of low-income people in financial trouble. Some go as far as to say they “prey” on them. Their argument to that is that they’re filling a need and they’re not doing anything illegal. So the controversy continues – let’s examine why.
Remember back when you thought you’d solved your problem and you could get on with your life? Well, what if your next paycheck, after your budgeted expenses, wasn’t enough to pay back the loan?
If you came up short again, you needn’t worry – payday loans are renewable, or extendable. This process is called “rollover” and, if you do it too many times, it could end up costing you a lot of money. Let’s look at an example: Say you borrowed $100 for 14 days (until your next payday). You write a check to the lender for $115 (includes your $15 fee). The APR (annual percentage rate) of that loan is 391%! If you can’t pay back the $115 on the due date, you can rollover the loan for another two weeks. If you rollover the loan three times, the finances charge would reach $60 for a $100 loan. That’s pretty high interest, don’t you think?
These are things you need to consider when you’re deciding if a payday loan is the right choice in your particular situation. Yes, the cost of the loan is high, but it provides you with the money you need, when you need it, thus avoiding a lot of stress and trouble. It’s very true in consumerism today that convenience costs money. But is it worth that much? That’s a question you’ll have to answer for yourself.
Payday loans are controversial – but they do fill a need
Now we’ve clearly shown both sides of the argument – and it’s a huge argument these days. So which party do you side with? That depends on your immediate situation. If you really just have to have it, and you don’t have any other choice, then a payday loan is probably the wise thing to do. At least you’ll be able to keep your sanity, even if it does cost you a few dollars.
When you find yourself in that situation, use it as an opportunity to learn. Remember, there are no mistakes – just lessons. If you have to get a payday loan, make sure you don’t roll it over too many times – that’s when it becomes a problem. And in the meantime, try to build up an emergency fund so you will be able to cover those unexpected costs. Become a good financial manager. Then you’ll have an alternative, and you won’t have to rely on a payday loan as ”your last resort”.
Remember back when you thought you’d solved your problem and you could get on with your life? Well, what if your next paycheck, after your budgeted expenses, wasn’t enough to pay back the loan?
If you came up short again, you needn’t worry – payday loans are renewable, or extendable. This process is called “rollover” and, if you do it too many times, it could end up costing you a lot of money. Let’s look at an example: Say you borrowed $100 for 14 days (until your next payday). You write a check to the lender for $115 (includes your $15 fee). The APR (annual percentage rate) of that loan is 391%! If you can’t pay back the $115 on the due date, you can rollover the loan for another two weeks. If you rollover the loan three times, the finances charge would reach $60 for a $100 loan. That’s pretty high interest, don’t you think?
These are things you need to consider when you’re deciding if a payday loan is the right choice in your particular situation. Yes, the cost of the loan is high, but it provides you with the money you need, when you need it, thus avoiding a lot of stress and trouble. It’s very true in consumerism today that convenience costs money. But is it worth that much? That’s a question you’ll have to answer for yourself.
Payday loans are controversial – but they do fill a need
Now we’ve clearly shown both sides of the argument – and it’s a huge argument these days. So which party do you side with? That depends on your immediate situation. If you really just have to have it, and you don’t have any other choice, then a payday loan is probably the wise thing to do. At least you’ll be able to keep your sanity, even if it does cost you a few dollars.
When you find yourself in that situation, use it as an opportunity to learn. Remember, there are no mistakes – just lessons. If you have to get a payday loan, make sure you don’t roll it over too many times – that’s when it becomes a problem. And in the meantime, try to build up an emergency fund so you will be able to cover those unexpected costs. Become a good financial manager. Then you’ll have an alternative, and you won’t have to rely on a payday loan as ”your last resort”.
Sunday, March 29, 2009
Where can you get a payday loan?
Payday loan companies are all over the place. There are over 10,000 payday loan outlets in business in the U.S. And they’re spread out in similar fashion throughout the world. If there isn’t a payday loan store near you, you can search the Internet and find hundreds of online payday loans there.
These companies are in business to “help” those in dire financial need. They offer these loans to people who can’t find the money they need anywhere else. Let’s profile one company who offers payday loans as part of their overall financial services business – Money Mart.
Money Mart was created as an alternative to banks. Their hours would extend beyond banking hours, and they’d situate themselves in more accessible locations than banks. They could cash checks when banks were closed, and people wouldn’t have to travel very far for their services. They must have been on the right track because now, they have 1,700 locations in Canada, the U.S. and the U.K.
A typical Money Mart customer is an average working person, 32 years old (82% of customers are under the age of 45) and employed, with an annual income around the national average. These customers go to Money Mart because of their fast service, their convenient locations, and their extended operating hours. The founders of Money Mart were right – their original ideas still hold true today.
Since adding payday cash advances to their financial services, they’ve carved themselves a very nice niche in the industry. But they’re definitely not the only choice. You can now find at least one, and usually several, payday loan centers in every community.
These companies are in business to “help” those in dire financial need. They offer these loans to people who can’t find the money they need anywhere else. Let’s profile one company who offers payday loans as part of their overall financial services business – Money Mart.
Money Mart was created as an alternative to banks. Their hours would extend beyond banking hours, and they’d situate themselves in more accessible locations than banks. They could cash checks when banks were closed, and people wouldn’t have to travel very far for their services. They must have been on the right track because now, they have 1,700 locations in Canada, the U.S. and the U.K.
A typical Money Mart customer is an average working person, 32 years old (82% of customers are under the age of 45) and employed, with an annual income around the national average. These customers go to Money Mart because of their fast service, their convenient locations, and their extended operating hours. The founders of Money Mart were right – their original ideas still hold true today.
Since adding payday cash advances to their financial services, they’ve carved themselves a very nice niche in the industry. But they’re definitely not the only choice. You can now find at least one, and usually several, payday loan centers in every community.
Friday, March 20, 2009
How Payday Loans Work – A Last Resort?
Have you ever been burdened with an unexpected expense, like a big car repair bill? How have you handled it? Do you use your credit card and pay for it, including interest, over a period of time? But perhaps you don’t have a credit card. Or maybe you’re one of the millions of people who carry too much debt, and have already “maxed out” your credit card. Do you have friends to borrow from? Most of us don’t like to do that – and most friends don’t like that, either. So what do you do? Well, you could get a payday loan.
What is a payday loan?
A payday loan has many names. Some call it a cash advance loan. Some call it a check advance loan. Another name is a post-dated check loan. Still others call it a deferred-deposit check loan. The Federal Trade Commission in the U.S. calls it “costly cash”. No matter what you call it, it’s the same thing: a small (usually $50-$500) short-term loan with high interest.
Why would you get a payday loan?
Payday loans are popular for a number of reasons. To those who are in the position of needing one, the advantages outweigh the disadvantages. And there are disadvantages, but we’ll look at those later.
First, put yourself in the shoes of the person who needs some quick cash. Perhaps you’ve just been put in the unenviable position of unexpectedly needing some cash and being “caught short”. You might have had an unexpected medical bill or car repair bill, or you might have to travel unexpectedly, like in the case of a death in the family. Others who need quick cash use it to pay their everyday expenses, like rent, groceries, utilities, etc. Whatever the reason, you need that cash and you just don’t have it.
Is a payday loan your last resort? Do you have other alternatives you could explore first? Well, what are the benefits of payday loans? Let’s see:
• You won’t have to go through the hassle of a credit check.
• You can apply in person, on the phone or on the Internet.
• The process takes less than 20 minutes.
• The loan proceeds are automatically deposited into your bank account within 24 hours.
• It’s affordable, at least immediately – you don’t have any up-front costs.
• It’s discreet – nobody else is involved.
• It’s secure – your financial information isn’t shared with others.
Ok, that makes sense. Those are enough reasons to get rid of the stress of being short of cash. It’s a “quick fix”. You can cover the shortage, and get on with your life. And you’ll be able to pay it back next payday, right? So you’ve solved your problem.
What is a payday loan?
A payday loan has many names. Some call it a cash advance loan. Some call it a check advance loan. Another name is a post-dated check loan. Still others call it a deferred-deposit check loan. The Federal Trade Commission in the U.S. calls it “costly cash”. No matter what you call it, it’s the same thing: a small (usually $50-$500) short-term loan with high interest.
Why would you get a payday loan?
Payday loans are popular for a number of reasons. To those who are in the position of needing one, the advantages outweigh the disadvantages. And there are disadvantages, but we’ll look at those later.
First, put yourself in the shoes of the person who needs some quick cash. Perhaps you’ve just been put in the unenviable position of unexpectedly needing some cash and being “caught short”. You might have had an unexpected medical bill or car repair bill, or you might have to travel unexpectedly, like in the case of a death in the family. Others who need quick cash use it to pay their everyday expenses, like rent, groceries, utilities, etc. Whatever the reason, you need that cash and you just don’t have it.
Is a payday loan your last resort? Do you have other alternatives you could explore first? Well, what are the benefits of payday loans? Let’s see:
• You won’t have to go through the hassle of a credit check.
• You can apply in person, on the phone or on the Internet.
• The process takes less than 20 minutes.
• The loan proceeds are automatically deposited into your bank account within 24 hours.
• It’s affordable, at least immediately – you don’t have any up-front costs.
• It’s discreet – nobody else is involved.
• It’s secure – your financial information isn’t shared with others.
Ok, that makes sense. Those are enough reasons to get rid of the stress of being short of cash. It’s a “quick fix”. You can cover the shortage, and get on with your life. And you’ll be able to pay it back next payday, right? So you’ve solved your problem.
Tuesday, January 20, 2009
Unsecured loans with No Credit Check - For your all needs
Several times borrowers face urgent cash needs during the mid of month. To overcome unexpected cash expenses, the lenders offer no credit check unsecured loans so that borrowers can rub off to their instant cash needs. These loans are small and short term in nature as they are approved on the basis of upcoming payday. Importantly, the amount offered to borrower is generally small.
As the name specifies, amount is advanced without any credit check or collateral possession. This makes the participation of the bad credit holders more possible without worrying about the valuable asset.
No credit check Unsecured loans are known by different names such as cash advance loan, post dated cheque loan, deferred deposit cheque loan or the payday loans. The cash loans are advanced for a short period because borrowers do not need the money for a long time frame. The time frame for this loan ranges from 2-4 weeks. Or, it can be said that pay back amount is depended upon borrowers next payday. The amount offered to borrowers generally varies from $100 to $1500. The rate of interest is high on these loans because of its nature and type.
Well, to be part of these short term financial aids, borrower need to be at least 18 years old with a regular job and active bank account. Here in this loan option, when the borrower get the loan approved, the money is electronically transferred to the active bank account automatically without involving hassle.
No credit check unsecured loans satisfy the short and immediate needs of the borrower. With the help of the loan amount, the borrower can overcome several kitty expenses such as grocery bills, car repair, education fees, small home renovation, medical expenses, unplanned travel expenses and so on.
These cash advanced loans are convenient and fast way to find the short term cash urgently. One disadvantage which these cash loans generally carry is that they are very expensive.
As the name specifies, amount is advanced without any credit check or collateral possession. This makes the participation of the bad credit holders more possible without worrying about the valuable asset.
No credit check Unsecured loans are known by different names such as cash advance loan, post dated cheque loan, deferred deposit cheque loan or the payday loans. The cash loans are advanced for a short period because borrowers do not need the money for a long time frame. The time frame for this loan ranges from 2-4 weeks. Or, it can be said that pay back amount is depended upon borrowers next payday. The amount offered to borrowers generally varies from $100 to $1500. The rate of interest is high on these loans because of its nature and type.
Well, to be part of these short term financial aids, borrower need to be at least 18 years old with a regular job and active bank account. Here in this loan option, when the borrower get the loan approved, the money is electronically transferred to the active bank account automatically without involving hassle.
No credit check unsecured loans satisfy the short and immediate needs of the borrower. With the help of the loan amount, the borrower can overcome several kitty expenses such as grocery bills, car repair, education fees, small home renovation, medical expenses, unplanned travel expenses and so on.
These cash advanced loans are convenient and fast way to find the short term cash urgently. One disadvantage which these cash loans generally carry is that they are very expensive.
Tuesday, January 13, 2009
Payday Loans: Wait! Spyware Menace
Attention: Please permit me to deviate a little bit from our main discussion on this blog. I really don't like doing this but it has come to my notice severally and I can no longer avoid it - I mean, this is something that also affects me too!
I am talking about spyware. There are many different spyware and adware running around all over the place now days. You may be aware of some of these but you may not know the problems they can cause or how they might get into your computer systems. You might not even know that there are so many out there. Unless you are researching these you may not have even heard of some of them, so let me inform you just a little bit on several of these.
One of these is called the trojan horse program. This program has many similarities to the spyware program. The trojan horse program actually has the ability to get into your computer system without you ever knowing that it has even arrived. The ones using these to get into your computer system are not planning to use it for any kind of good deeds, it’s purposes are strictly being used in violating your privacy and possibly damaging your computer system if you do not catch up with it in enough time to save your system and your personal security. With the proper programs you should be able to stop it in it’s tracks or atleast keep it from doing any worse damage than it might have already achieved. If there is any good thing about the trojan horse program it is that it does not have the ability to ever duplicate itself in any form.
My friend has taken the pain to touch various aspects of this menacing internet threat. Visit him to learn all about it here.
I am talking about spyware. There are many different spyware and adware running around all over the place now days. You may be aware of some of these but you may not know the problems they can cause or how they might get into your computer systems. You might not even know that there are so many out there. Unless you are researching these you may not have even heard of some of them, so let me inform you just a little bit on several of these.
One of these is called the trojan horse program. This program has many similarities to the spyware program. The trojan horse program actually has the ability to get into your computer system without you ever knowing that it has even arrived. The ones using these to get into your computer system are not planning to use it for any kind of good deeds, it’s purposes are strictly being used in violating your privacy and possibly damaging your computer system if you do not catch up with it in enough time to save your system and your personal security. With the proper programs you should be able to stop it in it’s tracks or atleast keep it from doing any worse damage than it might have already achieved. If there is any good thing about the trojan horse program it is that it does not have the ability to ever duplicate itself in any form.
My friend has taken the pain to touch various aspects of this menacing internet threat. Visit him to learn all about it here.
Monday, January 05, 2009
What is the quickest way to payoff payday loans?
We recently received a question from one of our reader saying: What is the quickest way to payoff payday loans? Then I went ahead to answer him but decided to also post my answer here for anybody wishing to know.
HE ASKED: Other than not taking them out in the first place, what can I do to pay off some payday loans that I did when we hit a cash slump…We are slowly getting back on tract otherwise (budgeting mortgage payments weekly, working with debt consolidation) but now these are hanging over our heads.
MY RESPONSE:
For emergencies with negotiation and pay in the future look at ingdirect they take your savings quickly.
For emergencies with negotiation and car pooling will add to get it if you disciplined shopping in the future look at ingdirectcom they take your debt to get it if you 45 or 100 per pay these off struggling through the temporary cash crisis then taking.
The interest rates are killers you the downside is it the future look at ingdirect they take your debt to give you the downside is it right away but it if you have no expendable income would hold off on it if you.
HE ASKED: Other than not taking them out in the first place, what can I do to pay off some payday loans that I did when we hit a cash slump…We are slowly getting back on tract otherwise (budgeting mortgage payments weekly, working with debt consolidation) but now these are hanging over our heads.
MY RESPONSE:
For emergencies with negotiation and pay in the future look at ingdirect they take your savings quickly.
For emergencies with negotiation and car pooling will add to get it if you disciplined shopping in the future look at ingdirectcom they take your debt to get it if you 45 or 100 per pay these off struggling through the temporary cash crisis then taking.
The interest rates are killers you the downside is it the future look at ingdirect they take your debt to give you the downside is it right away but it if you have no expendable income would hold off on it if you.
Friday, January 02, 2009
10 Ways to Save Money
Payday loans are good but how about saving money? It's really true. I will have to say here that even though I talk about the best ways and companies to get payday loans from, I still think that if you saved money, you wouldn't be needing payday loans.
There really are easy ways to save money, but you have to look for them. Some ideas really have been too good to be true though, so do your homework when you come across a money-saving idea. Here goes:
1. Install a programmable thermostat. This can save you a lot of money by controlling the temperature of your house more easily and keeping you from forgetting to turn the thermostat up or down when you leave the house.
2. Close your blinds and curtains at night. This will help keep your house warmer in the winter and cooler in the summer, so your air conditioner and heater won’t have to work as hard
3. Put more insulation in your attic. You lose a lot of heat through it in the winter, and it creates a lot of heat in the summer, causing you higher energy bills.
4. Use your ceiling fans. You don’t have to keep it as cool in your house if you run your fans, and it will still feel comfortable.
5. Check your home for air leaks and seal them up. More energy savings there.
6. Take showers instead of baths. A bath uses many, many gallons of water – much more than a shower does. You can save on your water bill.
7. Run the dishwasher only when it’s really full. Running it half-empty is a waste of water.
8. Wash only full loads of clothing. This is the same as the dishwater. Don’t waste water.
9. Switch your light bulbs to compact fluorescents. These use a lot less energy for the same amount of light.
10. Close your garage door, especially when it’s cold outside. It’ll help your heating and cooling bill.
There really are easy ways to save money, but you have to look for them. Some ideas really have been too good to be true though, so do your homework when you come across a money-saving idea. Here goes:
1. Install a programmable thermostat. This can save you a lot of money by controlling the temperature of your house more easily and keeping you from forgetting to turn the thermostat up or down when you leave the house.
2. Close your blinds and curtains at night. This will help keep your house warmer in the winter and cooler in the summer, so your air conditioner and heater won’t have to work as hard
3. Put more insulation in your attic. You lose a lot of heat through it in the winter, and it creates a lot of heat in the summer, causing you higher energy bills.
4. Use your ceiling fans. You don’t have to keep it as cool in your house if you run your fans, and it will still feel comfortable.
5. Check your home for air leaks and seal them up. More energy savings there.
6. Take showers instead of baths. A bath uses many, many gallons of water – much more than a shower does. You can save on your water bill.
7. Run the dishwasher only when it’s really full. Running it half-empty is a waste of water.
8. Wash only full loads of clothing. This is the same as the dishwater. Don’t waste water.
9. Switch your light bulbs to compact fluorescents. These use a lot less energy for the same amount of light.
10. Close your garage door, especially when it’s cold outside. It’ll help your heating and cooling bill.
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