Posts tagged ‘payday loans’

Procedure For Taking Out a 100 Payday Loan

If you need a 100 payday loan, then it's best that you understand how these loans work, and the procedure that will be followed in case you do decide this type of loan is what you need. Remember, with average rates above 400% APR, payday loans are not cheap cash. As such, you need to make sure that you know the process and understand what your responsibilities and obligations are under the loan terms before you take out the loan - otherwise, a loan as small as $100 can end up hurting you severely.

How  Payday Loans Work

The first step in the process of taking out a payday loan is key - you need to determine if you really need this loan. Again, they are very expensive, and as such you should only take them out infrequently (maybe 1 or 2 times in a year) only in circumstances that are absolutely necessary. Taking out small cash loans for the purpose of taking a vacation, buying a TV, or some other form of entertainment does not qualify for an emergency and these loans should not be used for these purposes.  Many studies have shown that average payday borrowers take out between 6 and 8 loans during a year, and a lot of this is due to the fact that people take out loans for things that are not truly emergencies.  Do not fall into this trap - yes, it is very easy to take out this type of loan, but don't let the easy cash fool you - in the end these loans are nothing but easy cash and can hurt your financial situation greatly if you don't use them properly.

The second step is finding a good lender. Your options will vary greatly by state. Some states simply do not allow payday lenders to operate within their regions, so if you find yourself in one of these states you will need to look to an online lender for your loan.  Each lender may operate slightly differently, however the basic steps are the same:

  1. Fill out the application.  The application will ask you to verify three main things that are required to take out the loan.  You will be required to 1) have a checking account (most lenders will require the account to have been in good standing for several months), 2) have a valid income source, and 3) verify that you are above the age of 18.
  2. Give the lender a post-dated check or an ACH authorization form (ACH stands for Automated Clearing House transaction and is basically just giving them permission to take money directly out of your checking account if you default on the loan).
  3. Set a date to go back and pay off the loan.

It's very important that you understand step number 2, and how that can affect you if you don't pay off the loan.  So many people complain when they find payday lenders going into their checking accounts and automatically taking money out, not realizing that by signing the ACH authorization form that this is exactly what you are allowing them to do.  Of course this form becomes null and void if you do pay the loan back in full - just make sure you do so in time, otherwise you will end up paying a lot more than you would like to for normal 100 payday loans.

The third step is making sure that you pay the loan back on time.  We already talked about how the lender can essentially go directly into your bank account and take out fund (not a good thing, and something that you want to avoid obviously), but we didn't talk about the extra costs you will pay - late fees, returned check fees, collection fees, etc. if you don't get your payment taken care of - and this is all on top of an already crazy expensive loan.  Remember this key point - do not, under ANY circumstance, take out a payday loan (for any amount of money) if you are not certain that you can pay it back on time.

Bottom Line

Understanding how the payday loan process works can keep you out of severe financial trouble.  Study these simple steps and make sure you understand how they work before you decide to talk to any lender.

Best Not To Consider Logbook Loans

With the number of problems many people are having these days with their finances it can be no surprise that applications for all sorts of bad credit loans have risen dramatically. The most well known of these products would probably be the payday loan which many of us will have seen available on the high street, or perhaps you have even used them yourself in a time of need.

Although the companies that supply these loans love to pretend that they do so for our own good, the reality is that they are only in the game for the vast amount of cash they can make by praying on the less well off members of our society. With such high interest rates applied to these payday advances, the people who use them usually find that they end up in a worse state than they were in the first place.

Some of you might already know this of course and do your best to stay away from them at all costs. At the same time you might see ads for a product known as logbook loans and decide that these might be the choice for you. Logbook loans have lower interest rates than some of the other fast cash loans so you might think they are a better idea.

What you have to remember though is that you have to put your car down as collateral when you make use of these and that means that you are in danger of losing your only form of transport. Also, although they have a lower interest rate applied to them you take the loan out over a much longer period of time so you are always going to end up paying far more cash back than you borrowed in the first place.

The best thing any consumer can do is stay away from all types of bad credit loans unless you find yourself in a situation where you have no other choice. Even then you might be better to get some unbiased professional financial advice to see if there is another way out of your predicament.

Internet Payday Loans

During tough economic times people look for new ways to make ends meet. Payday loans have long been a popular solution, but now something new has popped up and is actually growing in popularity: internet payday loans. They work the same way as a traditional payday loan store would, just the transaction takes place over the internet. So, you need to use the same caution that you would with a regular payday loan store. They make money by charging interest. Often the interest rates are quite high, so you don't want to keep a loan out for a long time, and you most definitely don't want to keep revolving debt because the amount you are paying in interest will certainly keep you in debt. So be smart and only use these types of institutions in a real emergency.

Get Fast Cash Now

If you're hurting for money and need to get fast cash now you have quite a few places that you can turn.  Everyone falls on hard times every once in a while, and when you consider the fact that 50% of Americans live from paycheck to paycheck, this happens a lot!!  Before you run down to your local payday lender, take a look around your house and see what kinds of stuff you have that you can part with.  Pawn shops, bookstores, record stores, and clothing shops will buy a lot of the stuff you already have.  This will save you from having to pay back a loan with the monster interest later on.  If you don't have anything to sell, turning to a loan is not a bad idea but I would try out all of my other options first.

Payday Loans – Use With Extreme Care

It used to seem strange to me that so many people get into the habit of using payday loans on a consistent basis but that was before I really thought about how this credit product works. I would say to people who used the payday advance that they should use them in case of emergency but only once in a blue moon when you had no other option.

What I didn't realise was that once you start using this product you get into a vicious circle where each month you have to take out an even bigger loan to pay for last months debt and to get you through the new month. This is the reality of payday advance loans and the reason why you should do all in your power to avoid having to use them. There are much better ways to get a hold of cash in times of financial emergency.

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