Sunday, October 28, 2012

Five Benefits Of Choosing A Payday Loan

With so many quick cash methods being readily available to you at any given moment, it's absolutely crucial that you understand the benefits of a payday loan online or in-store and when it would be the better option for you, and your specific situation. Here are the top five reasons why a cash advance would be a great solution to your need of immediate cash.

First and foremost, you want any kind of small loan that you are taking out to be absolutely secure. When it comes to a payday loan for your finances or even a cash advance for your wallet, it's one of the most secure choices on the market, whether you withdraw money from an ATM, bank machine or even a cash advance company's website.

Although anything done on the internet can be considered risky, reputable sites and payday loan companies will have a secure network within their website that will allow you to safely apply for a loan, right then, right there, without ever having to go anywhere. When dealing with money, it's always absolutely imperative that you trust the service that you're using, and a payday loan is a great way to have the security of a small loan.

Convenience is a huge part of everyone's life, and it's what we all thrive on. As mentioned previously, you can apply for immediate cash on a variety of different companies websites, which makes it absolutely convenient and easy for you to quickly receive the funds that you are in need of. There is no need for you to rummage through your paperwork, getting documentations, and filling out a long and dreadful application, because cash advances and convenience go hand in hand.

If you are someone who like to meet with a loan rep face-to-face, then some payday loan companies, offer the ability to walk into a storefront location to apply. It's just as fast and you can ask all of your questions while meeting with your loan representative.

Long and dreadful simply aren't a part of this small, short term loan. What goes right alongside with convenience? Well, speed, of course! As mentioned, you don't have to go in and talk with this representative, and that representative and be passed around all the staff members before ever getting a chance to fill out an application. If you have the cash advance option already set up on your card, you can walk to the closet corner store that offers ATM services and have bills in your hand within minutes. Is there really any loan that can be provided faster than that?

The options are endless, and fees are avoidable. If you get some cash back at your local grocery store, often times, you won't be charged an upfront fee, but don't have the option to pull out a lot of money. Now, if you go to an ATM, you can pull out more, but have the fee. You have options that fit your needs.

Sunday, October 21, 2012

Are You Using Too Many Payday Loans to Keep Your Car Running?

Are you using payday loans online to help keep up with your car maintenance? A car that is always in the shop can be a budget buster. Credit cards fill up fast with mechanics' bills. Unless you know how or know someone who does, multiple trips to a mechanic in a short period of time will build debt. Payday loans online can be used to keep other payments going out on time if there is no room left on credit cards.

If your finances are going downhill because of your vehicle, it may be time to reevaluate that ride.

* Are the breakdowns related?

* What is the age and mileage of your car?

* Could they be avoided?

* Are there preventative measures which cost less?

* Do I know someone who can do it cheaper or use salvaged parts?

* Can I learn to do it myself?

Use your online payday loan to take a shop class at the local community college. Learning some basic knowledge can help you maintain your vehicle. The skills learned will at least give you a better understanding of your vehicle to prevent a mechanic who likes to overcharge or add extra unnecessary tasks onto your bill from taking advantage of you. Women would benefit the most out of a general beginner's mechanic class.

When you use your money in order to improve your future spending is a good investment. Take a beginning plumbing or carpentry class to save future money is just as helpful as learning how to sew and cook. Cooking healthy low cost meals for your family will save tons of money over the long term. Eating out or serving pre-prepared foods will lead to excessive food costs. Fresh foods made at home will also help with preventing medical problems.

Once you start looking at your lifestyle and find ways you can not only improve your life but also your finances, you will find yourself less apt to be leaning on a payday loan online in order to make your budget a success.

Don't let a vehicle destroy your finances. If it is at the point where there is no reprieve from breakdowns, you may want to think about selling it. No one will buy it? A junkyard will. Old cars are good for salvaging workable parts. Having a car which is dependable will not only keep your life better on track, but will keep your budget from having to reach for extra cash. Direct payday loans and credit cards will be burdensome on a budget if left unpaid. you may be better off getting a loan to buy a new or used car. the interest will be much lower and the payment will be fixed. It is much easier to budget a fixed expense than trying to find the money to pay for repairs. Online payday loans are options for cash emergencies, but when someone's budget depends on them, they are no longer a help but a hindrance. One fee is cost effective, multiple fees plus high interest is a budget buster.

Sunday, October 14, 2012

Protect Future Generations From Payday Loan Reliance by Preparing Your Finances for Death

Nobody wants to see their offspring struggle financially, relying on credit cards, cash advances, or payday loans to get by. Unfortunately, the sad reality is that many people utilize such services while trying their best to keep above water in this difficult economy. While adults are ultimately responsible for themselves, many parents and grandparents hope to create a safety net for their families should they die; after all, as parents and grandparents, the desire to protect their own is a strong motivator.

However, for many people, the simple act of talking about the death of a loved one is too much to bear. When discussions of wills and insurance policies come up, many shy away from the conversation, emotionally overwhelmed by the inevitability of the death of a loving parent or grandparent. Discussing finances when faced with the possible death of someone close is undeniably unsavory, yet, as hard as it is to discuss, it is an important discussion to have and may help one's lineage reduce unhealthy financial practices, such as payday loan and cash advance reliance.

Not preparing one's finances for death can leave family members in dire straits. Most people want to leave behind an inheritance, something to make life a little more financially secure for the next generation. The only way to do so is to confront one's finances head on, organizing finances and financial documents in case of one's demise.

Below are factors that need to be considered when making decisions about one's financial legacy.

*Beneficiary forms are vital documents to have in case of death. To ensure that your money goes to the person to whom you desire to donate, you need to verify said person's name on all beneficiary forms. Even if your will denotes a certain individual as beneficiary, if the same name is not indicated on beneficiary documents the will can be overridden and the money will be transferred to whoever is listed on said document. These documents should be updated regularly with life changes and copies should be stored in mutually agreed upon, easily accessible places.

*Life insurance and retirement policies are two primary sources of inheritance left to the relatives of those who pass away. Documents on these policies should be kept in a mutually agreed upon place so that loved ones can easily access them. Most companies have built in retirement plans, but not all offer life insurance. To financially prepare the future generations of your family, an individual may want to seek out a reputable and affordable life insurance plan.

*It is crucial that accounts are made accessible so that loved one's can access funds for funeral costs and outstanding bills. Most do not want to burden their family members with the cost of memorial services; allowing a trusted family member to access your accounts may make covering the cost of such services more bearable. Adding a trusted loved one to your account is one way to make your accounts accessible.

* A payoff plan will let your loved ones know exactly how you intend your money to be spent after passing. In this plan, you would likely indicate any outstanding loans (cars, mortgage, credit, etc.) that need to be paid off and then individuate where you'd like the rest of your assets to go. Having a payoff plan spares your loved ones the stress of trying to figure out what you would have wanted.

All of these factors should be discussed with family members and a professional lawyer prior to death to reduce the strain that death has on a family. Healthy finance practices help to make this process smoother. Keeping unnecessary debt like payday loans and car title loans out of the picture.

Sunday, October 7, 2012

Women Using Payday Loan Lenders and Credit Cards More Than Men

Recent results from a PEW study showed that single young women are leading the pack with getting money from payday loan lenders. Well, they came out on top in a study done by Consolidated Credit as well. It seems that single women are more likely to rack up credit card debt too.

Consolidated credit has records which show that 70% of the callers, in the last six months, looking for help with credit card debt have come from women. One of the reasons discussed that came out of this finding is that women are still facing a pay wage gap. Women are earning about 81 cents to a man's dollar. This will make them have to stretch their money further each month. As the pay gap does play a role in many lives, it is not the major reason.

A man and a woman get their own apartment. Rent, security deposit, paying utility turn-on fees are some of the start-up costs where the gap in pay could make a difference. The difference in cost of moving between the man and the woman, at this point have been similar, but in many cases, it is just the beginning.

Have you ever heard of a bachelor pad? What comes to mind? Does a pretty plain apartment with furniture to sit on, a television and lots to drink in the refrigerator come to mind? There isn't much else important to most men who work full time and live alone. On the other hand, a woman will take shopping a bit further and want to have things to decorate. In order to make the rooms feel like home, decor is important to most women. A woman will spend more to set up the new apartment. Herein lays an example of how women are more likely to spend more money than a man. Of course this is a generalization, but it is not the only aspect of credit card usage. Clothing, shoes, jewelry, make-up, hand bags and more can create credit card debt quickly.

This money option is one to use sparingly and only to help make an on-time payment. If a paycheck is still a week or more away, the payday loan lenders will be a best option only if that upcoming income will cover the cost to pay it off. These lenders will give out a loan and not ask questions as to what the money will be used for. This is the responsibility of the borrower to use the money on something to help their finances, not decorate a wall.

It sounds harsh, but so are the consequences if you are not able to pay the loan off on the original due date. Payday loan lenders online lend money to people without a credit check. It is a high risk loan with fees and high interest attached to outstanding balances; it is not the best route to take for purchasing wants.

Monday, October 1, 2012

Live Within Your Means and Keep Payday Loan Costs Low

As credit becomes more readily available, Americans are finding themselves more and more in debt. This coupled with the fact that we are constantly being inundated with the next new big thing to buy, has left many in dire financial straits. As we continue taking out payday loans or cash advances that we cannot afford in order to cover our impulsive spending, we will likewise see this hole of debt grow even bigger. Those who want to avoid finding themselves in such a state can do so by simply living within their means.

While this solution is fairly straight forward, it has become harder and harder to do so in today's society. However, by thinking before you spend and adjusting your purchasing habits, you can ensure that you buy only what you can afford, thus keeping you from drowning in a sea of debt.

One way in which people tend to live beyond their means is by trying to keep up with technology. The rapid advancement of technology means that new and more advanced products are constantly coming out on the market. It seems that a new cell phone or television comes out every week, causing people to stand in monstrous lines for the opportunity to give stores money that they do not have in order to be one of the first to own it.

Before you find yourself among this crowd, you should ask yourself a couple of questions. First, do you really need the product? Is the cell phone that you purchased two months ago so out of date that you must upgrade to a new one, or have you simply fallen victim to good marketing and a 'keep up with the Joneses' mentality. If you do not really need the product but still want it, then you must decide whether you have enough expendable income to buy the product anyways. Can you afford to buy something simply because you want it? An honest 'yes' means that you can purchase it and still live within your means, while an honest 'no' means you should quell your impulses and walk away.

Another way in which people live outside of their means is by buying experiences that they cannot afford. Going on vacations or to dinners and events that you do not have the money for can quickly put you further and further into debt. This is a harder situation to avoid, as you may worry that not going on such outings will put a damper in your social life. However, this need not be the case.

You can live within your means and still have a thriving social life by being a little more aware of what you buy when you go out. Choose a restaurant that you can afford, and if you so find yourself in a higher priced establishment, be aware of the prices before ordering. Have a soup and salad instead of the three pound lobster. If you go out to drinks afterwards, do not be afraid to ask the bartender for prices, as you do not want to accidentally order a $15 cocktail. By being aware of your purchases when you go out, you can keep your social life without having to take out a payday loan in order to cover rent next month.

Sunday, September 30, 2012

What Are The Best Reasons To Apply For A Payday Loan?

Payday loans are turning into one of the most preferred ways to cover a financial emergency that your budget did not foresee. These short-term loans are even more ideal when your next paycheck won't be able to spring for the monetary crisis that you have on your hands. As many companies offer this service, too, those who need the assistance of direct payday loans lenders are assured of finding that help.

The popularity of payday loans, however, has given some the idea that they can go to direct lenders for anything that they need. If the next payday is not going to happen for a few more days, applying for a payday loan can be the way to go. And, since many lending companies are not very finicky when it comes to approving these loans, many may think that any reason would do - as long as they get the cash that they think they need.

There is nothing wrong with that, of course payday loans can provide the necessary financial coping means that many of us would be thankful for, after all. Lending companies would only be too happy to extend a helping hand, too. However, loans should instill in us the fact that there is something we can fall on, if we ever find ourselves in a situation where such help is greatly needed - but not to the point where we would permit ourselves to use them as a form of escape when our paycheck could not completely satisfy our wants.

The following are some of the best reasons to go for a short term loan. Note that each of these, while unforeseen and unexpected, are very solid grounds upon which we can fully be qualified to ask for a little financial help.

1. Car emergency. A lot of us have been in this situation: our car breaks down, we take it to the repair shop, and we get a bill which clearly says we won't be able to pay for it without help. During these times, same day loans would be really effective. Many lending companies grant same-day loans, so getting your car repair bill sorted would not be a problem. Eligibility for a payday loan is not going to take long, too, so you can have the cash that you need immediately.

2. Medical emergency. A health-related disaster should be dealt with, as soon as you are able. And, if you find that you cannot, instant cash loans would help tide you over such a crucial time. The immediacy of these loans are perfect for cases that warrant your attention most, with the added benefit of assurance that you would be perfectly fit to respond to these emergencies.

Many direct payday loan lenders operate with a really good set of policies, thus giving people the guarantee that the financial help they need and would find is indeed help. If you are considering it, just make sure that you are getting it for the right reasons.

Sunday, September 23, 2012

Benefits and Drawbacks of Payday Loans

Without having to go through a cumbersome process of applying for a loan, payday loans have become the most popular form of immediate financial aid to people. Several financial problems such as medical bills and utility bills can be paid by getting payday loans. However before relying on these loans, it is imperative that the benefits and costs are studied to make appropriate decisions. This article sheds light on the benefits and drawbacks of small payday loans in a neutral manner.


Immediate approval- The most addictive part of these loans is their immediate approval. It does not take more than 24 hours from applying to getting the loan credited in the borrower's account. In some cases, it hardly takes even 12 hours. Instead of waiting for several weeks, your loan application is immediately approved.

No relevance of credit score- Banks check the credit score of their loan applicants. Based upon this score, banks then decide to whether approve or disapprove the loan amount. In the case of instant loans, credit score is not a decisive factor to be determined by the lending authority. In fact, most of the applicants applying for short term loans have a very bad credit history.


Very expensive loans- As compared to a typical interest rate of less than 15%, payday loans have interest rates starting at 30% or higher, which makes these loans very expensive to repay. Payday lenders usually provide a ballpark estimate of the principal amount plus the interest expense to be paid within 30 days deadline. If you fail to repay within the time limit, interest expense keeps on increasing.

More debt- In simple terms, the inability to repay a payday loan increases your debt level and there comes a time when the repaid amount is often 10 times greater than the borrowed amount. Instead of getting out, you are further getting buried under heavy pressure of debt.

Very addictive in nature- The quick application approval process of these loans make them addictive in nature. Unfortunately, this has become a habit for many borrowers who are just unable to pay the rising debt on time. Do not indulge in this habit.

Concluding, it is better in cutting down your unnecessary expenses rather than borrowing funds to finance your luxuries. Loans are never a good option for anyone. Make use of these loans very wisely or you could end up in a big financial stress.

Sunday, September 16, 2012

What Is Happening With The Payday Lending Industry?

If you're an avid reader in the internet, chances are, you've already noticed the attention that payday loans have and the growing numbers of articles written about them. Its not a surprise anymore, and the very reason why its getting much visible is because of the given media attention ever since the recent recession we experienced. Payday loans are becoming more popular especially with the general public for several reasons. To maintain its popularity, these payday lenders try their best to cater those who are in need of their services. Keeping in phase with payday loan trends requires a creative and innovative mind.

Current State of The Industry - Payday Lending

Last year (2011), lenders were in a state of amazement. A lot of the lenders got their most successful years in terms of business, offering more loan options with higher value than the previous years. Some lenders - mostly those who offer their services online - even see themselves grow from a starting firm to a popular one in over a year. In the eyes of most consumers, they have the recession to blame responsible for this shifts, but experts suggests that it all happened before the economy suffered a great recession.

For online payday lenders, they found a growth of around 30 to 35 percent over the years. As the market grows, it also develops changes shifting to more younger individuals using the opportunities of having to acquire short-term payday loans. With the advancement of the technology, it becomes easier for these consumers to get access to online lenders through the internet using phones, computers, or tablets. Whether they are in need of starting capital for a business venture, or they just hit a rough time of the year with finances, they apply for these types of loans.

The Benefits of Applying For Loans Online

While some lenders still operate the traditional way, more and more companies are now using the Internet to establish more visibility and business presence. This way, more and more consumers or borrowers are given an easier means of canvassing for the right lender at their convenience without the need of leaving home. It's quicker and basically easier, unlike what most people experience with the old or traditional lender. And, it doesn't stop with the application, as the approval rates and length of approval is becomes more speedy allowing one to get the much needed amount within a day from approval or application.

Payday loans also are more preferred by many as compared to other types of loans because they are considered unsecured, or basically no collateral required unlike pawnshops or other types of lenders that require you to submit properties or assets as insurance for the loan. In payday lending, none of these are required.

Why People Want Fast Cash

There are a hundred reasons why people apply for such loans. Reasons can go from funding for paying outstanding bills that are nearly due, as capital for a small business venture, or for emergency expenses.

Unfortunately, the bead economy has lead more and more people to rely of these types of loans in a more regular basis. Some people use it for rent or pay utilities, while some do to pay other mortgages. This is something that should be avoided, as it brings you closer to a debt trap. Consumers should only use these types of loans for its main purpose: to provide short-term solutions for urgent emergencies and temporary cash needs.

Sunday, September 9, 2012

Regular Car Maintenance Can Reduce Payday Loan Usage

Finances and cars often go hand and hand; not only are cars expensive, but they require maintenance, much like one's finances. Individuals are wise to treat their cars like their finances, taking measures to keep everything running smooth and in good order. The best way to keep your car, and in turn your finances, healthy is to keep up on all regular scheduled maintenance. Don't let a small problem become a huge financial burden. By taking care of the little things your car requires, you can consequently safeguard your finances, keeping you from seeking out a payday loan when expensive car issues arise.

Neglecting regular car maintenance can have serious financial consequences, leading to payday loan usage and expensive repairs. Skipping a few twenty dollar oil changes can cost a car owner hundreds if the engine develops deposits and needs substantial repair, while forgetting to rotate one's tires can lead to dangerous blow-outs and lower gas efficiency. Additionally, many car warranties are dependent on the owner's promise to keep up on maintenance; failing to do so can void a warranty, leaving the car owner with the cost of repairs that may have otherwise been covered.

The best way to maintain both vehicular and financial health is to regularly have one's car serviced. The following is a list of regular maintenance that car owners should heed.

*Oil Change: A car should have its oil changed every 3,000 to 7,000 miles, as an integral part of car maintenance. Forgoing oil changes is bound to have a serious effect on a car's engine, which can cost the owner a lot of money and time. There are many businesses that conduct quick oil changes in less than a half hour; thus, taking the car in for this service is only a minor inconvenience. Having a professional change you oil is relatively inexpensive-roughly twenty to thirty dollars-but you can also do the oil change yourself, if you know how, and save a bit of money.

*Tire Rotation: Tire rotation is a very inexpensive and quick service that makes a huge difference in the function of your vehicle. Rotation ensures the longevity of a tire as it helps the tire to wear evenly. If tires are not regularly rotated, they will wear faster and need to be replaced, which can be very costly. Keeping tires in good repair also help to save on gas, as the vehicle performs better and gets better gas mileage. Tires should be rotated every 5,000 to 10,000 miles, or every other oil change.

*Brake Checks: Brakes are the most important safety feature in a vehicle. As such, they should be check regularly to maintain optimal functioning. Brakes should be replaced approximately every 25,000 miles. Furthermore, if brakes squeak or vibrate, they should be checked, regardless of mileage. It is a good rule to have your brake depth checked during every tire rotation, as a safety precaution. Not taking care of your car's brakes is inviting financial and possible safety issues. It is not worth it.

*Fluid Checks: Your car's fluids are like their blood; the car will die without them. Having car fluids, including transmission fluid, engine coolant, brake fluid, and oil should be checked and topped off every time a car is serviced. Many fluids can easily be checked at home.

Sunday, September 2, 2012

Payday Loan Lender Rates Remain Constant As Bank Rates Climb

Payday loan lenders have high fees for their small short-term loans. It is well publicized and laid out in the contract which is signed. These fees do not affect everyone since not everyone finds a need to take out a loan with a direct payday loan lender online. If they do, it is not a daily occasion and is quite helpful in that last ditch effort for access to cash. Banks though, are financial institutions which people use every day, trust to hole life savings and depended up on to do many financial jobs. When bank fees go up, it affects just about everyone.

Personal banking fees are on the rise. Legislature efforts to keep fees at a minimum are falling wayside as banks continue to raise the costs of their personal banking services. Fees for checking accounts and ATM usage are at their all-time high.

If a person uses an ATM which belongs to a different bank than their own are facing a double charge which the customer may not even be aware of. The owner of the ATM has a right to charge a persona surcharge for using their machine. The owner of the card being used has a right to charge a person a transaction fee to use their card in a machine which does not belong to them. That is double the cost. With prices on the rise, those charges add up fast. It is costing consumers more and more money to gain access to their own money. An ATM will charge you to use your own money. The direct payday loan lender charges for the use of their money. It makes more sense to pay to use other's money, not your own.

Banks are saying that the raise in fees is due to federal regulations on debit cards and overdraft policies. Losing billions of dollars in revenue needs to be made up somewhere else, right? With all the complaints against online payday loan lenders, it is pretty safe to say that they are not earning billions of dollars in fees from anything. That just goes to show that high interest rates on short-term loans do not begin to compare to lower rates with everyday long-term costs.

Charges for checking accounts are also making waves with people who cannot afford to keep $3000 in their checking account. The use of banking services, what was once free, now holds a monthly charge for many hard working people.

Changing banks is not an easy thing to do; especially if you do online banking and have bills scheduled and direct deposits. It takes time, and during those few weeks it takes to redo it all, a person will need money in both accounts. Those who live paycheck to paycheck will have a tough time switching banks, and the banks know it. Closing accounts is a process for a reason; the banks do not want to lose customers. Payday loan lenders are direct lenders for immediate cash when your paycheck is too far away. Banks have started their own short-term loans to imitate payday loans with no state regulations. High interest without regulations is one more way for a bank to collect revenue.

Sunday, August 26, 2012

Asking Questions About Payday Loans and Other Financial Transactions

If you find yourself in a financially trying situation, you may need to withdraw a payday loan in order to make it to the next paycheck. Despite the negative stigma often associated with such loans, they can be a helpful way to get monetary matters settled when your next paycheck is too far away. Thus a trip to your local lender need not be a bad experience, and in order to make sure that it is not so you will want to be well informed. Unfortunately, this is where many payday loan experiences often go awry.

Consumers have an unusual and potentially troublesome habit of failing to ask questions when performing a financial transaction. This can lead to a misunderstanding in what the consumer is buying and how much they are paying for it, particularly in more complicated transactions such as loans, where the true costs and rules are often shrouded in legalistic language. However, by asking questions you can make a better informed decision and have the best loan experience possible.

Of course, the first question that comes to mind whenever dealing with money is 'How much does it cost'? While this may seem apparent at first, often time's expenses are hidden in the fine print that end up raising the final price of your transaction. For this reason, you should not only ask whomever you are dealing with how much his or her services costs, but what the final amount is that you can expect to pay after fees, interests, etc. This will give you a more realistic idea as to how much you will spend, thus better enabling you to make a decision concerning whether you want to complete the transaction or not.

Another question you will want to ask, especially when taking out a payday loan, is what are the stipulations of said loan and what will happen if these stipulations are not met. Specifically, you will want to know how much time you have to pay back the loan and what will occur if you cannot make repayment in this allotted time. This is important information to know for any financial transaction, but particularly important in the case of payday loans, as repayment schedules can be quick (often as little as two weeks) and fees for failing to repay in time can be steep.

There several other things you may wish to know when taking out a payday loan. For example, you may be concerned about how said loans will affect your credit, what legal actions you or your lender may take against each other if one of you fails to fulfill the contract, etc. These are legitimate concerns and should they or any other questions come to mind, do not be afraid to ask them. Remember, you are a customer, and as such you deserve good customer service. Be clear when asking your questions, and accept only clear answers.

A legitimate payday loan lender will be more than happy to alleviate any concerns you may have by giving you the information you ask for. By staying well-informed, you are better able to make good decisions in your financial dealings. Asking your lender any question that you may have will ensure you a positive experience at their office, making them a happy proprietor and you a happy customer.

Sunday, August 19, 2012

A Tweaked Version of Payday Loans Being Offered in Limited Areas

A new spin-off from payday loans has filtered into Hispanic communities in Southern California and Texas. This new tweaked version of direct payday loans stems from a Stanford student, James Gutierrez. His business school project focused on single-digit interest rates for high risk loans to be paid off over 9 or10 months instead of just a few short few weeks.

The new payday loan model is set up at a small kiosk within small Hispanic supermarkets. Agents offer unsecured loans to those who need some fast cash when there is little to no credit built in to obtain other types of financial help. The loans are still much more expensive than bank loans, but they are helping people in small Hispanic communities get access to much needed cash. Often times, people will take out a small loan in order to get groceries or pay for vehicle repair. The money is most often used within the same community strengthening the community's economy.

These new payday loan lenders already deny about 50% of its applicants and in turn have a very low default rate. Lending to someone who does not have the means to make the payments is following best practices rules. There are many online loan lenders who good business policies of keeping rates lower than the state caps. Lenders who look at direct payday loans as opportunities for people, who have nowhere else to go to make ends meet, will offer better rates. There are many companies who look at loans only as potential profit, and their rates will follow state caps. There are those predatory lenders who do not follow any type of rule or regulation but will prey on those who need extra money fast by offering larger amounts. Extremely high interest rates coupled with unaffordable loan amounts create big trouble for those who accept the loans.

Borrowing money from an aggressive or predatory lender will also put you more at risk with dealing with possible fraudulent companies. Steer clear of a lender who will offer you loans when the majority will not.

Payday loans online, brick and mortar, or now at conveniently located kiosks in limited locations, are still a high risk loan to those with poor or thin credit. People with good credit do often use these low cost loans to help out a financial crunch. These borrowers tend not to go into default. The debt struggle tends to fall on the laps of people who have no secure payoff plan or are loaned money without proper income to back up the payoff.

The battle will continue between opponents and promoters of the low cost payday loans. Opposition will keep governments trying to restrict the payday loans process and in some areas ban them altogether. Those for the fast cash opportunity will fight for the rights of people to keep options available to use at their own discretion. The argument that people who use these types of loans may fall into the low income bracket, but it does not mean their intelligence is low. Financial solutions are options and it is up to the borrower to find the one which fits their finances the best.

Sunday, August 12, 2012

The Evolution of the Payday Loan Industry

The payday loan industry has been getting a lot of attention recently. Many Americans have only recently learned about these lending agents through television commercials and advertisements, but the industry itself has a substantial history that predates the advent of the TV.

According to a PEW analysis of the history of payday loans, the industry stems from an over hundred year old practice of salary lending, wherein an individual could borrow against his/her salary for substantial interest. While payday loans are similar in this regard, the industry has evolved over the past one hundred years, with government regulations making these businesses more transparent and online availability making these services more accessible.

Unlike salary lending, payday loans are legal in most states. At the turn of the century, borrowing from a salary lender could cost someone his/her reputation, job, and money. Things have certainly come a long way, as these days payday loan lending is now mainstream, legal, and government regulated.

Regulations started early in the 20th century; in 1916, the Uniform Small Loan Law proposed a cap of 3.5 % monthly interest on loans of less than $300. While all the states did not comply with this low interest rate, two-thirds adopted the law with revisions, charging between 18 to 45 % interest on small loans. Regulators hoped to encourage the populace to seek out more reputable, licensed lending establishments, but, despite their efforts, the industry continued to grow.

The influx of consumerism in the middle of the 20th century led to the federal deregulation of lending laws in the 1970 and 80′s. When the federal government eased up on the regulations for mortgage lending, credit cards, and other lending businesses, they essentially made it possible for state licensed payday loan lenders to emerge. Following in the footsteps of the feds, the states began to allow state-licensed lenders to offer high-interest, deferred transactions, wherein a borrower could write a post-dated check to secure a loan--for a cost. And so began the payday loan industry as we know it today.

In the past 30 years, the industry has seen tremendous growth, with expansion beyond onsite independent lenders to big banks and online providers. For instance, earlier this year Wells Fargo Bank began offering payday advances, while many companies have taken to the internet. Online lenders have gained popularity due to the convenience they provide, but many are wary of such providers as they are less regulated than their onsite counterparts.

Undeniably, payday advances are still viewed critically by much of society; the high interest rates and short payback periods make such loans dangerous to many consumers. However, with state level regulations, the industry has gained a lot of credibility. Many states have outlawed payday advances altogether; these are dubbed restrictive states and they have very low reports of loan reliance. In hybrid states, those that allow lending but with more regulations, lower fees, and more transparency, payday advance reliance is significantly less prominent.

Even in permissive states, which have less regulation than their restrictive and hybrid counterparts, payday loan businesses have gained reputability. Many lenders are responsible and transparent, seeking to provide loans with their intended purpose: to help people in times of emergency. When used in this way, these advances can be useful. When abused, however, they can cause a lot of harm to one's credit (financial reputation) and finances, much like their predecessors: salary loans.

Sunday, August 5, 2012

Retailers And The Holidays - Is This The Right Time For A Payday Loan?

The holidays are approaching and some of us may find that our pocketbooks are cringing. Americans are gearing up to spend as always but will shop till they drop? This may be the time for a payday loan.

Americans love to shop, especially around the holidays, but money is tight and now is a good time for that extra cash from a payday loan or cash advance. Being able to buy that treasure for your loved one will not only put a smile on their face but on yours. Retailers are expecting a rise in spending this year and we all want to be part of the holiday cheer.

Consumer spending is important to the American economy but with so many of us experieincing empty bank accounts, how do we keep up our holiday cheer via retail bliss? A payday loan can put that much needed money in your account on the very same day you apply and are regulated so the borrower can usually receive anywhere from $50 to $2,000 overnight. The borrower must have a job, an active bank account and be over the age of 18 to be able to secure a cash advance.

It is important to America's faltering financial situation that the traditional shopping season goes well but the mindset of Americans can be judged by their spending habits. If you do find yourself needing to take out a payday loan, you don't have to be embarrassed. You can find one online and only you will know about it. Online lending is safe and easy. Just be sure to find a licensed insured payday lender so your experience is a pleasant one. The licensed lender will be able to explain the terms of your loan to you clearly so that you fully understand what is expected as far as repayment goes.

None of us need worry for the holidays. We want to shop and enjoy without the stress of the borrowing process. With the repayment date of the cash advance on your next payday, your loan obligations will be over soon. You even have to remember to make your payment because the insured lender will automatically debit your bank account on the due date for the full amount of the loan.

This is a challenging year for the country. Americans are filled with uncertainties about jobs, homes, gas prices and a longer recession. Yet, we still want to buy that special gift for our for our son or daughter and take that trip back east to see Gramma. A payday loan is not a challenge. It is a great advantage during this holiday season especially with all the hustle and bustle. Don't let this be an overwhelming challenge and concern. Find a payday loan, learn the terms, realize that the interest will be high and the repayment date soon, and don't bite off more than you can chew. Enjoy the giving season while making those you love smile.

Wednesday, August 1, 2012

Stop, Look and Listen With A Payday Loan

We live in a generation where people live on credit. Instant gratification, when it comes to money at least, is something too many of us have become used to. Mortgages, car loans, credit cards, and student loans are just a few ways people borrow on credit. The problem with these loans is that most of the time they are secured. Meaning, if the borrower goes into default on the payment, the creditor has something to take away from them. These loans do not prove helpful in cases when someone needs instant cash.

Nowadays consumers turn to cash advance and payday loans online to get instant cash when there is a financial emergency or unexpected cost. Given the popularity of such loans, the market is flooded with payday loan providers. This is great for payday loan customers because it keeps the terms, conditions and interest rates charged by lenders very competitive. On the other hand, amidst many genuine lenders, there can be lenders known as "predatory" who seek to give out a loan at any cost; even when it means putting the borrower into financial jeopardy.

Unsecured online payday loans are a great solution to getting cash fast. Over 12 million people use these loans every year. Because of the ease and convenience of the process, reliable and trustworthy payday loans can be effective if used for the right reasons. Finding a reliable lender is as important as getting the instant cash you need.

It doesn't require any financial expertise to note the do's and don'ts of applying for a payday loan with a credible lender. Educating yourself on the basics of payday lending will help you feel better if you apply for and receive a loan. Meanwhile, when you need cash in a hurry, do not make decisions in haste. Take a few minutes of your time to look at all of your options. Payday loan lenders who adhere to state rules and regulations will be the most honest and trustworthy.

Getting references from friends, relatives or colleagues who have utilized the services of a payday loan provider can help you in getting instant cash. You can get helpful information about providers of payday loans with the assurance of knowing someone who has gone through the experience. Visiting the Better Business Bureau's website to see if there are any grievances against the lender can help you stay away from predatory lenders. Reading opinions and reviews about lenders will help a great deal as well being that these are usually written by people who have gone through the lender for a loan.

Don't just choose the first lender that pops-up on your computer screen. Go through their website and look at their "FAQs" page to get some answers to their most commonly asked questions. You can even take a few minutes to call certain lenders and ask then about their loan practices, policies, and procedures. Any good lender will be happy to answer you questions. Should they seem hesitant, take that as a warning sign that they may not be credible.