Friday, 31 May 2013

Payday Loans - Three Dreadful and Awful Facts You Should Be Aware of

Payday loans or cash advance loans or fast cash loans offer short-term financial relief to the consumers who are not able to obtain money traditional institutions easily. The lender credits a certain amount in the checking account of the consumers electronically. In return, consumers send a post-dated check to the lender. Consumers can also permit the lender to withdraw money from their checking account for a short span of time.
It is true that these kinds of short-term loans offer instant relief to the consumers enduring financial traumas. However, there are several facts about these loans that are quite shocking and dreadful. Have a look at the following sections to know about them.
1. The interest rates on the loans are very high
The interest rates on the loans don't accrue everyday. Interest rates are fixed in advance. Usually, the rate percentage depends upon the amount borrowed by the consumer. Most states specify the maximum interest rate that a lender can ask a borrower to pay. Believe it or not, the annual percentage rate can be very high. It can be as high as 400 percent. It can be 700 percent also. If the consumers take time to pay off the debt, then the lender will charge even more. The lender can impose additional interest rate and fees. In such a situation, the debt amount will only escalate.
2. The repayment terms are very short
The loan repayment term is very short. As it has already been said, the interest rate is very high. In case of legal lenders, consumers have to pay both the principal amount and the interest rates. They have to make the full payment within 14-15 days. The lenders may also debit the checking account of the consumers on a specified date. The lender won't consider the fact that there are not enough funds in the checking account. The lender will debit the account even if it becomes negative. The consumer will face problem due to the NSF fees charged by the bank.
3. These loans can be obtained very easily
A consumer can borrow money if he has the following things:
(a) checking account
(b) pay stubs
(c) identification documents
The fact that consumers can borrow money easily is considered as a benefit. However, on the hindsight, if the consumers think carefully, then it'll be found that the easy availability of a loan is a drawback.
The easy availability of money makes consumers borrow loans, which have very high interest rates. If the lending standards were little bit strict, then consumers could have easily avoided incurring such high interest debts. They would not have to get payday loan help later on.
Last but not the least, there is yet another shocking fact about short-term loans. The illegal lenders often use fraudulent tactics to collect money from consumers. Apart from that, they also use scare tactics to frighten consumers. They threaten consumers by saying that they would be arrested in the event of non-payment. Moreover, the illegal lenders also threaten to confiscate the properties of consumers if they don't pay the exceedingly high interest rates and fees.
Unfortunately, the consumers are not well versed with the state and federal laws. They are not aware of the fact that debts are civil. No one can be sent to jail for the debts. Only the legal lenders have the power to file a lawsuit against the consumers. In case, the legal lenders are able to defeat the consumers, then there can be a big problem. Consumers may face wage garnishment and lose a good amount of money every month.

$1,000 Emergency Cash Advance Loan - Quick Cash When You Need It

Emergencies happen. There is nothing that you can do to avoid them. Even people, who cautiously plan out their finances and have a "rainy" day fund, can find themselves in a financial crisis. In some cases, a family member or friend can help with a cash gift or a small loan, but most people do not have this option.
On a recent day, a customer named "Meg" needed an emergency loan because her air conditioning stopped working, when temperatures soared to 98 degrees in Phoenix, Arizona. With three small children and an elderly parent in the household, she had no choice but to get a new air conditioning unit installed.
Cash advance loans, also referred to as cash till payday loans, are small short term loans that consumers can use to manage emergency situations or daily expenses. Most Americans, who are actively employed and have a steady source of income, can get a loan. The amount of cash that a customer can borrow depends on how much the applicant earns per month. Lenders offer loans starting from $100 to $1,000.
The popularity of cash advance loans, have increased over the last few years, as more Americans struggle to meet financial obligations, amidst a struggling economy. White collar and blue collar workers, alike, are using short terms loans to manage unexpected expenses. The fact is, even cash-strapped homeowners, who have equity in their homes, cannot get a home equity loan or a home equity line of credit (HELOC), easily. In addition, the loan application process is extremely time consuming and arduous.
Can I Get A Loan, If I Am Not Employed?
No. Popular to contrary belief, unemployment loans do not exist. The only way that a lender operates as a business, is to ensure that it's customers can repay their loans. A person without a steady source of income, cannot repay a loan. Consumers, should take extra precautions when considering lenders touting "unemployment cash advance loans".
How Can I Get A $1,000 Loan?
A quick search for cash advance lenders will yield an abundance of resources but not all lenders are created equal. Some lenders, specialize in small loans and only approve loans of up to $250, which are repayable in fourteen (14) days or less.
Lenders, who offer larger short term loans, are more flexible in setting their repayment period, if you meet their loan qualification requirements. A typical loan amount ranges from $500 to $1,000. Consumers, applying for these loans, must be able to prove that they earn enough to repay their loan, after all other deductions are taken from their paychecks. Deductions may include health insurance, retirement, child support, spousal support, wage garnishments, etc. The loan repayment period ranges from fourteen (14) days to thirty (30) days.
The loan application process is fairly straight-forward and convenient. Most lenders allow consumers to complete a short and secure, online application that takes one to two minutes. The application form includes standard inquiries such as your contact information so that the lender can verify your loan request. Other important information, include your employment status, bi-weekly or monthly earnings mount and the dates of your upcoming pay checks. Most applicants, who complete the loan request form, accurately are usually approved instantly and can get a loan in hours.
What If I Have Bad Credit? Can I Get A $1,000 Loan?
Yes. Fortunately, your ability to qualify for a cash advance loan is solely based on your ability to repay the loan - in other words, your employment status and earnings. Whether you have bad credit, no credit history, a foreclosure or bankruptcy history, you can still get a loan.
Can I Get A Loan Without A Bank Account?
The simple answer is "no". Online cash lenders require a checking or savings account so that the cash can be wired to your account, immediately. If you do not have a bank account, consult with your neighborhood cash store, which might have an alternative payment option. Having a bank account means that you can get the cash you need in a few hours.

Learn How To Spot The Bad Lenders From The Good Ones

Just like banks, private lenders have to meet standards and adhere to regulations set out by the government and financial governing bodies. They are all required to operate in a fair and just manner in order to protect the consumer.
It won't come as any surprise however, when I tell you that not all lenders follow these rules. The internet is littered with stories of how unscrupulous lenders took advantage of unsuspecting, ill-advised borrowers.
It shocks me, but there are still people out there who are unaware of how to go about safely choosing a lender. Opting for the easiest, quickest choice and not taking care to do the research, is frankly, a foolish way to do business. It is not a good way to look after yourself or your finances.
These less than honest lenders are being weeded out! However, they still do manage to ensnare people in financial difficulty.
When you are looking for a any type of credit or financial assistance, first of all, spend time doing your homework.
Make a list of exactly what you are trying to achieve and what you need to find out. Looking for a reputable lender starts with a simple search. But don't choose the first one you find! Have a look at customers' reviews. Do some searches to see what else you can find about the lender you are researching.
Look at good three or four lenders - at least. Compare their fees, charges, terms and conditions. All these elements, when compared to others will help you build up a picture of what is standard practise, who is reputable and who is not.
While the need for a short term loan generally occurs as a result of an unforeseen emergency, and while it is understandable that these types of emergencies usually need to be dealt with very quickly, it is very unwise to rush into any type of loan without doing a thorough check on your lender of choice.
Don't be bullied, cajoled or 'sold' a loan by anyone. Stick to your guns, find out the information you need and say 'NO!' if you have any doubts about a lender's authenticity.
Your money, your data, personal information and your financial security are of paramount importance. Treat it as such, and only do business with lenders and financial institutions with a proven track record of doing likewise for their customers.
We would love to stamp out the negative reputation private lenders are being given as a result of a handful of bad apples. We would love to join forces with the reputable lenders to remove these sharks from being able to operate. Unfortunately, that is not something easily done.
We can however, get the message out there to potential borrowers. We are sharing tips and advice on the best way to do your research and choose a lender in the hope those consumers will learn how to spot the bad lenders for the good ones!
The best way to protect yourself and your money is to look for referrals, good reviews and to ask questions!
Do your homework! It will save you money in the long run.
Look at more than one lender. Compare three or four at least.
Check the terms and conditions, fees and look for any hidden charges.
Don't be pressured by a hard sell, either on or offline!
Don't agree to anything until you are certain and feel confident you are dealing with a company who can provide you with a financial solution perfect for your needs.
Be responsible for your own borrowing. Can you afford a loan? Can you afford to pay it back?
Work with a responsible lender. Responsible lenders will have formal guidelines and application procedures, make their fees very clear, and will answer all your questions with no hard sell whatsoever.
If you follow these tips, you'll be able to avoid a tangle with a bad lender. Instead you'll be able to access emergency funds when you need them, knowing that at the end of the term you'll be able to repay the loan, with no drama and no problems.

Instant Loans - The Fastest Solutions to Your Financial Problems

Advantages of Instant Loans
Unsecured - This is probably one of the most important advantages presented by the short term loans of any kind. You do not have to bring in your car, your house or any other possession as collateral. This way, you can keep all your valuable assets safe and get the money you need urgently at the same time.
No credit check - In order to be eligible for a loan from the bank, you must have good credit scores, so no delays in paying your other financial obligations. The particular situation of the global economy made this nearly impossible, diminishing considerably your chances to obtain money when you need it. Fortunately, an immaculate credit history is not part of the requirements for getting instant loans.
Less complicated - You do not need to meet the representatives of the lender countless times before obtaining the loan. The number of the documents you must attach to your application is also considerably reduced compared to what you have to present to the bank.
Faster - There are certain situations when you need a quick cash advance and you cannot afford to wait for days in a row or even weeks. The period necessary for the application and the approval procedures to be completed is considerably shortened when applying online. This is one of the explanations behind the term of "instant loans".
Varied - The credit institutions and the lenders offer you the possibility to borrow from as little as 50 dollars to 2,000 dollars, depending on how much you need at a certain point and on how consistent your income is.
Flexibility - Usually, the amount you owe is directly debited from your bank account when the repayment term expires. However, you can also make partial payments before the arrival of the due date. By doing this, you can diminish the sum you pay as interest. Downsides of Instant Loans
Higher costs - The interest rates applied for these credits are significantly higher than those applied for bank-granted loans. This is partly justified by the risks that the lenders assume by not asking for collaterals, lending money to bad credit applicants and requesting only basic information and documentation. The overall costs associated with the short term personal loans granted online reach 30% of the borrowed amount.
Short repayment time - It can be regarded as a drawback if you are not able to settle your finances in due time. However, most of the people who need cash advance now use the money to cover their expenses until payday, when they return it. From this point of view, the short duration of the repayment period is considered rather a benefit than a drawback, as they get rid of worries fast.
How to Identify Legit Offers for Instant Loans
The Internet simplifies your task of finding the payday credit that suits your needs and your income. Although a lot of reputable lenders are active online, there are also unscrupulous people who try to take advantage of your need for an emergency cash advance and get hands on your personal information or trick you into paying more than you should. From this point of view, you must check the details carefully before applying for a particular credit offer.
When you visit a site providing short term loans, make sure some physical information of the lender is included. Even if he or she does not have a regular office, you should be able to contact the lender directly and verify his or her contact information. If this is not possible, the advertised instant loans are probably nothing more than traps set by loan sharks.
The charged fees and the interest rate are other important details that appear on the site of a legitimate payday loans provider. You must avoid filling in the application with your personal information if the quantum of the costs is not clearly specified, because you can end up paying a lot more than you initially borrowed.
However, the reliability and seriousness of the legitimate online lenders, who know how to gain the trust of their clients and how to maintain a good collaboration with them, discouraged many of the fraudulent actions of loan sharks.

Using Payday Loans For Bad Credit Management: A Better Options Out There

The financial difficulties that we all face are not small matters. These days, simply meeting our regular bills is something of a challenge, and dealing with these commitments can drive some people to desperate measures, such as taking out a payday loan for bad credit management purposes.
In fact, getting a loan under such terms is something of a knee-jerk reaction to counter mounting pressure. Rarely, if ever, will such a move alleviate the problem, and often it leads to a worse situation which prompts the borrower to opt for bankruptcy. It is possible to avoid declaring bankruptcy completely.
But exactly why is a payday loan such a bad option when it is arguably the most accessible loan type for bad credit borrowers? Well, while they do have their uses, there other options to consider that are more proactive solutions, and come with far less associated pressure.
Why Payday Loans May Not Work
Taking out a payday loan for bad credit management purposes can create more problems than it solves. For a start, the interest rate that is typically charged on this kind of loan is extremely high, ranging between 30% and 50%, depending on the lender.
What is more, the amount of time that is given to clear the debt in full is extremely short, with as little as 14 days stipulated in some contracts. This is because the loan is granted against an upcoming paycheck. And with so little time and such high interest, pressure increases dramatically, so that in the long run, it becomes difficult to avoid declaring bankruptcy.
Anyway, the size of a payday loan is small. The maximum available is $1,500, which is enough to deal with a financial emergency. And since full repayment ($1,950) is taken from a paycheck, there is little left to deal with regular monthly obligations.
Why Payday Loans May Work
Of course, there are situations where using a payday loan for bad credit management is a perfectly viable option.
For example, because they are granted with no credit checks, even applicants with the worst credit history can access the funds.
It is also possible to get the funds very quickly, with the approval process taking as little as a few minutes. This is because the only condition is that the monthly paycheck is large enough to repay the loan in full. So, once confirmation of income is provided, the lender will grant the funds.
The ambition to avoid declaring bankruptcy can also be served if the funds are used to deal with an emergency debt, which would otherwise throw finances into chaos. For example, if $1,000 is secured through a payday loan, it can be used to ensure a mortgage payment is made, or final notice on a credit card debt is dealt with.
Other Solutions To The Problem
Of course, there are those who believe bankruptcy is a practical solution to an impossible financial situation, and if getting payday loans for bad credit management purposes fails, it is hard to avoid the fate. But there are other options to consider too.
It is possible to avoid declaring bankruptcy if a consolidation loan is secured instead. This offers a constructive solution to debt problems by clearing all debts in one go and replacing them with a single loan. If the term is long enough, then the repayments can be as much as 50% less than the original monthly obligation.
It might seem that a payday loan is the only viable option before bankruptcy, but that is not true. So, take some time to consider a consolidation loan - which can be approved within 24 hours - before jumping to the highly-expensive payday option.