Payday loan companies will differ from state to state, and from company to company. One thing that determines how a payday loan will be is the state regulations. Regulations on online payday advances have not been clearly defined in most states. This is one of the reasons the interest can be so high on these types of loans. The companies are not held to the same parameters as your regular loan. It is partly due to a loop hole in the fair lending practices in which payday loan companies insist they are not like a bank or regular lender. Another reason is that there is a regulation that was passed that negated the above 30 percent law. The law stated no loan or line of credit could be above 30 percent, but in 2000 another law changed this allowing for interest to increase.
No matter where you live in the United States you can find an online or store front business that can give you cash until payday loans. Not all of the companies that you find online can work in your area, so it is important to find this information out first. There is no sense filling out an application if you can’t hope to get the payday loan because you live in the wrong section of the country. Some payday loans will be nationwide while others are regional. It is best to get a quote for your emergency payday loan from several lenders so that you can choose the right one for your circumstances.
You may find a better interest rate if you take the time to look at more than one lender. Most of the lenders use computerized technology so that you can apply instantly and find out if you have been approved in about twenty-four hours. That means that you won’t be wasting any more time by checking out a variety of lenders than if you just take the first one that you find. If you have poor credit, bad credit or even a bankruptcy you should be able to find a short-term payday loan to see you through an emergency.
The short answer to this question is yes, cash loans today can be achieved. The bigger question is, should you agree to this short term loan or look for other ways to pay for an emergency? If budgeting to the best of your ability has still left you without enough cash for an unplanned expense you may have no other way to remain free of overdraft fees or insufficient funds fees in your checking account. Cash loans can be used until you get paid again. If you need money for a longer time period this loan won’t work for you.
What can you do if you are short of cash before your next pay check? Many people are finding themselves in the same situation, and this could be why there are so many businesses ready to help. The help that we are talking about is called easy payday loans. They are set up for small sums that can get you through an emergency between pay periods. While they can carry steep interest rates it may be more cost effective than paying overdraft fees or late charges on your bills. If you have poor credit you shouldn’t be affected when trying to get a short term payday loan.
There are companies that have physical stores while others are on the Internet only. Most of the online businesses have a no fax policy, which means the paperwork is kept to a minimum. You don’t have to fax your pay stubs or other documents and there is no faxing required. This works well if you have a low credit score or a poor payment history. The only thing that could be affected would be the interest rate you will be charged. A payday loan is not meant to be a long term solution to your problems, so use this choice only in extreme times of need.
Payday loans are seen as a saving grace for those months where our income can’t quite stretch to pay our bills. With the no hassle loans, you could get a little extra cash between paychecks to make those bill payments. But, is it really the best thing for you to do? Are there no better options than these no hassle loans? Before you take out a payday loan you might want to understand how they work, including the pros and cons.
Payday loans are meant to be small. Most companies will not offer more than $1000 in one loan. This is because the loan is based on the amount of income you generate in a month. Some companies are willing to lend you 50 percent of what you make in a month, but the majority of the companies will not do this. They know it would be difficult for you to pay back 50 percent of what you make in a month. It would take one entire paycheck plus most of the other paycheck based on the interest. These loans have anywhere from 20 to over 1400 percent interest. The average interest rate is usually 500 percent.
There are times when we find a need for money in a hurry to pay past due bills or financial obligations, but have not necessarily saved enough to do so on such short notice. These occasions hopefully only come once in a great while. We can turn to friends or family for quick loans that we can repay in the upcoming weeks, but sometimes our family and friends are strapped for cash just like us and we must find alternate arrangements for the money we need. Banks will also lend us the money, but it may take longer than desired to get the information to the bank and receive our funds. These are the perfect circumstances in which a payday loan can help us. You can get quick cash for bills or financial obligations that are pressing and urgent and need to be taken care of right away.
Federal and financial regulators have taken to issuing warnings each month about pay day lenders. In February a new warning was issued by the top government regulators about the payday loans. The Federal Reserve Bank of San Francisco and the Federal Deposit Insurance Corp were also part of this warning. In fact, they held a symposium about the dangers of payday loans and the alternative products available for individuals who are suffering from a lack of money.
Those at the conference stated the website of the Federal Trade Commission provides a number of different alternatives, while warning against the small, short-term, and high rate loans. The Better Business Bureau also released a warning against pay day lenders. They called these types of loans a “debt spiral” that could trap consumers into a worse situation than they are already in.
Entering a cycle in which you have bad credit and a payday loan is dangerous. You can be spending money you do not have to spend just to try and pay off the payday loan. For this reason we have some information to help you if you need help with payday loan with bad credit. The following steps should help you get out of the cycle you are in with payday loans and even help with bad credit in the long run.
No one likes to admit that they have a problem; however, this is the first thing you must do if you want out of the bad credit cycle you are in. You have to realize that you have an issue with your debts, even if it is just to yourself. It helps if you have someone else you can speak with about your debts though. If you do not have a family member you can speak with then consider finding a debt management company. There are non- profit companies out there that will help you look over your finances and listen to you and what you wish to do to get out of the debt you are in.
You will need to fill out a blank sheet of paper, or if the company provides you with a budget sheet fill that out. When you outline your expenses, incidentals, income, and any other financial information you have it will give you a better idea of where you sit financially. It may be a little scary if you see your expenses for the month are $3000, and you only make $2000. It may further scare you to see your total of debt. This total would be the mortgage, lines of credits, and any payday loans you are paying on. Most individuals with a mortgage have over $200,000 in debt, and earn less than $50,000 a year.
After you see what your expenses are, you need to create a sheet for when you pay the expenses each month. You also need to include when you get paid on this sheet. This will help you assign the money you earn to where it can go. From this point it is possible to see if you have a solution for getting your debt paid off, especially the payday loans that might be hindering your monthly income. A payday loan is often a short term loan that is paid back when you get paid. If you have one of these it must be paid off, even if this means you will have to miss a payment on another expense.
Now, it is never a good idea to miss a payment, but there are certain expenses that will work with you regarding payments. In your monthly expenses do you have any medical bills? If so call up the company and explain your situation, and that you need to make a payment late, but you will be making the payment. Second, look at your utilities. Utility companies tend to work with you if you can pay a portion of the amount owed. You still have to pay the full amount, but you can buy some time.
Once you have bought a little time it is best to pay off the payday loan and stay away from this type of loan ever again. You can also begin to look at other solutions for your debt. Do you own a second car that you could live without? Is there anything else you could sell to get a little income saved up towards your bills? Are there areas in your expenses such as dining out and entertainment that you can cut down? If so begin doing this.
Bad credit can make it hard to get a line of credit like a personal loan, but have you considered refinancing your home? Is it possible to get your mortgage payments lowered or to take equity out? If you are in a really bad credit situation a bank may not be willing to work with you. On the other hand, they may allow you to refinance in order to keep you from defaulting on their mortgage.
No matter how bad your debt is there are solutions. You just need to take a stand with your current situation and realize where you are financially. Once you have that under control you can take a step back, end the panic, and begin to find the right solution.
Do you want to get a second payday loan? There are individuals out there that would love to have a second loan, even while they are still paying off the first. This is usually due to a stressful situation. This type of person is in a debt cycle. This cycle is usually where they are living pay check to pay check without being able to pay down their debts, and worse, they usually continue to add to those debts. They may have five credit cards that are all maxed out, a mortgage, second mortgage, car loans, and student loans. They may even have medical bills that are piling up and in comes a car repair bill. We could outline just about any type of situation as to why one might want a second payday loan, but instead we will look at whether or not you can get a second payday loan.
Have you found that you have so little money you don’t think you will be eligible for a cash advance or payday loan? If this sounds like your life right now you should know that there are companies out there that can help you even though you may think your situation is dire. It can be relatively easy to get a cash advance or even a payday loan if you meet a few qualifications. If you are a first time customer you may be able to find a payday loan company that will loan you the money without paying anything extra.