Are Payday Loans New?
No. Actually, the transaction of advancing small loans to workers in need is documented as early as the 1930s. There were select ‘mom and pop’ shops in those early times who would advance small amounts or allow regular customers to borrow against store credit. But this was not something widely done. In later years, as more and more mergers and acquisitions began to take place, something began to happen . Banks and large finance companies were disinterested in handling short small loans. The everyday working class citizen and his family were left out of the equation. Many bank customers were not interested in obtaining hundreds of thousands dollars or even thousand dollar loans. Families simply wanted access to small quick loans that could assist them in their time of emergency. By late 1990’s the need was finally recognized. In 1996, the service of small cash loans was made readily available in many states. What did this involve? It required a lengthy paper process, credit checks and funds could not be available until the process was complete. Many times this process would take days. But today, thanks to technology, things have changed.

What This Means For You
Today pay day loans are available online. You can get approved quickly and in most cases within minutes. The process is short, sweet, and with no hassle. There is no faxing, only a quick online application process and the rest is a breeze.

Things To Keep In Mind
While the process to obtain a pay day loan has been made simpler, there are some things to remember. Pay day loans are only for temporary assistance. It is not to be used regularly or to supplement income. Careful preparation is needed. Make sure you budget accordingly so that you will be able to cover any shortages once it is time to repay the loan. Use it wisely, and you will find that pay day loans are a great solution to life’s little ’surprises’.

Payday loan stores in many states with tight payday lending restrictions have already exited those states. For example last June in Arizona, most payday lenders like Advance America started closing their locations  because of a 36% APR usury cap that was introduced to all loans including payday loans. And payday lenders, who lend small loans short term bases, can ‘t be profitable at a 36% APR. In fact they will lose money at that rate.

That is why many Arizona residents whom relied on payday loans, switched to the internet looking for  payday loans online from online lenders.

This trend has been increasingly popular lately putting online lenders at short term advantage but even online lenders are not too optimistic about their future and many are looking to offer a  product that beyond payday loan.

The main reason for that is passages of the financial overhaul passed by the congress and signed by the president, which has created a created a new government branch which will soon put new rules and regulations including usury caps similar to Arizona’s on all lenders including online lenders.

Payday lending is a multibillion dollar industry in US economy and payday lenders offer thousands of jobs across the nation.

There would have been times when you have been least expecting a financial crisis and then you suddenly have to deal with an overwhelmingly large bill. It may be some kind of unplanned contingency like an accident or a medical problem. It could also be that you have been rather lapse in closing your monthly credit card bills and the amount has now grown rather insurmountable. If you have already maxed out your card, then the phone must be ringing off the hook about your payments on various ends. Borrowing from friends or family is not such a great idea as they would have their own financial commitments. If you wish to sort his out on your own, you might want to consider opting for what is called a payday loan.

A payday loan is a small loan that is meant to help you tide over things for an urgent need. It is not a large amount generally may be anywhere between $50 and $500. It is known by various names and people opt for this when they have an emergency financial situation against their paycheck. It is called as a check advance loan, a cash advance loan, a deferred check loan or even a post dated check loan. All of these are one and the same. It is also referred to as costly cash by the U.S. Federal Trade commission; however it is not something that is over the bounds of what can be paid back. The main reason is that these loans come with an interest rate that is on the higher side.

The payday loans are a big problem solver for people who are in a precarious financial situation. The advantages are many and it is the easiest way to get some quick cash when you are dealing with a whole bunch of bad credit issues and don’t know where to go or whom to ask for money. These loans can be applied for through the internet, via phone or in person. It is a quick process that takes roughly 25 minutes or lesser to get this loan from the source. It is immediately affordable and requires no payments upfront or advances to be made in order to get it. It is a discreet way of getting money, no more asking others and getting turned down or being the topic of conversation because you asked for some money! And it is done through secure channels and deposited into your checking account in a span of 24 hours after application.

There are over 10,000 payday loan firms in the U.S.  and you can even find thousands of them online with ease. It’s used by over 100 million Americans and is often seen as a less tiresome alternative than going to a bank despite it being a little more on the expensive side in terms of pay back. Convenience is a huge factor in why people prefer this as is the fact that it provides flexible repayment options and extensions if you wish for it.

Some customers are even ones who are current with their loans and some who have no open loans at all. “This disturbing fraudulent activity is sadly increasing with rapidity” per Robert A. , who is The Director of Collections  for the Legal Department at a direct lender. “We have consistently apprised our customers of this matter, and we strive to counsel them regarding this”.

It appears that somehow fraudulent rings have obtained sensitive data of payday lenders.  It seemingly is more commonplace for the smaller direct lenders.

Here are some precautionary methods to insure you are making payment to the actual lender.

1. Per the Fair Debt Collection Practices Act, third-party agencies are required to provide you with written documentation that the debt they are collecting on is valid. Request verification of said debt in writing, preferably certified mail.
2. If you are receiving repeated or harassing calls at work, home or on your cellular device, send a “Cease & Desist” letter, certified mail. Further calls from the receiving organization is a violation of Federal Law.
3. Consider a credit monitoring tool or system that alerts you when any activity takes place on your credit, such as an inquiry or a derogatory entry.
4. Ask the collector immediately “what is the name and mailing address of your company”. If they cannot provide a physical address, discontinue the conversation. If they ask you why, tell them you are confirming the validity of their company.
5. If they threaten arrest, extradition or lawsuits filed “against your social security number?”, etc., again, discontinue the conversation.
6. If you are suspicious of their validity, contact the original credit grantor directly and make an inquiry. Provide them with the phone number and name of the individual who contacted you.

Secondly, sometimes your car may get large repairers. But you still need to wait for 2 weeks to get your paychecks. You may not be able to travel via other transportation like bus, train. In that situation you may go far a payday loan.

Thirdly, if you have planned for an occasion tour with your family after a long time. But you don’t have enough money to travel and your family may get disappointed if you cancel the trip. Life should be cool, we should also give priority for your family and don’t make them unhappy. Let’s go for a financial help from a direct payday lender.

And finally, what ever the reason you feel which is very important for you, let’s think about it twice and if you really need extra money for such kind of needs then only go for it. The payday loans are meant for only highly important needs. ]]> http://paydayloan-blog.com/when-to-apply-for-a-payday-loan/feed/ 0 http://paydayloan-blog.com/save-yourself-from-payday-loan-debt-cycle/ http://paydayloan-blog.com/save-yourself-from-payday-loan-debt-cycle/#comments Thu, 05 Aug 2010 07:02:49 +0000 ash http://paydayloan-blog.com/?p=137 Nowadays taking a payday loan for emergency money needs has became practical thing. Of course the borrowed money could be used for many things, such as to pay home rent, to pay exam fees, car repair, to use it for planned vacation, for emergency treatments in hospitals and many more. Let’s say a payday loan of $800 was obtained and the interest rate would be around $12-$15 for every $100. So you have to pay around $120 as interest for the loan you borrowed. usually you should pay back this amount within 2 weeks.

Assume that, after two weeks when the due date comes you had another need for emergency cash. You could not able to pay off the loan amount and the loan period has extended for another 15 days. Now you have to pay $240 which is huge amount. Sometimes this may reach the actual amount that you was borrowed. You cannot escape from paying this back. You must pay it. But how you can manage this?

The interesting thing is, some people are taking another payday loan to pay off the previous loans. They are opting larger amount to clear off the old debt and interest which is in pending. The result is, now the borrower has a larger debit. This way he will be trapped into cycle of debt which is difficult to come out of it.

First of all you should really avoid doing such kind of things. Never go for a second loan without clearing the previous one. Don’t go for multiple payday loans at all. Taking a new payday loan to clear off the previous payday loan is the biggest mistake that a borrower is doing. That is not at all a wise decision.

And secondly, try to avoid some unnecessary things like extra shopping, parties etc and save money and pay some little amount as installment every month. So at least in few months, you will be debt free.

And finally, if you are stilling having trouble to escape the debt cycle, it is better to take help of a credit counselor. They provide guide you how to deal with greedy payday lenders.

1) Nowadays, payday business has becoming too popular. There is a huge competition between lenders. They are always trying to attract new customers. This is plus for you. You can ask them for some discount in charges. Since you are a new customer for them they don’t loose you. So ask them for what they are offering for new customers like you.

2) Borrow what actually you need. Never go for extra money that you don’t need. If you take extra money, obviously you have to pay them extra interest. And you many not be able to handle that extra amount efficiently.

3) Ask payday lender to extend your due date to the next payday period. It will give you more time to use that money and pay back the loan. They usually charge same fee for that period too. So you need not to hurry about replaying back immediately in a week.

Remember that payday loans do have unfair loan terms but they offer very fast and easy loan process to get money for urgent needs. Just follow the above tips to save your money by paying less interest. ]]> http://paydayloan-blog.com/better-ways-to-manage-your-payday-loans/feed/ 0 http://paydayloan-blog.com/payday-lending-and-the-payday-loan-consumers-demand-for-credit-options/ http://paydayloan-blog.com/payday-lending-and-the-payday-loan-consumers-demand-for-credit-options/#comments Tue, 03 Aug 2010 20:14:22 +0000 admin http://paydayloan-blog.com/?p=133 According to the Payday Loan Blog,  As millions of Americans struggle to tighten down their un-necessary spending during our economic crisis, many are finding that their already limited credit options are currently dwindling.  This is due in part to new proposed financial regulations, and also as a consequence of our economic recession.   Regardless of the cause, Americans are feeling the crunch on their access to both short-term credit and even small business loans.

Despite these declining credit options, many Americans are still in need of financing and credit options.  In fact, many small business owners with good credit are getting turned down for small business loans that would help to make necessary improvements to keep their doors open during the recession.  Small businesses aren’t the only ones having a tough time finding financing.  Middle to lower class American families which traditionally did not have many credit options are currently finding there already limited credit options are dwindling.  Without near perfect credit it is becoming increasingly difficult to get approved for credit cards leaving payday loans as one of their only options for quick cash if needed.

Although payday lending is one of very few consumer credit options left available to these lower-middle income families, many consumer groups and State legislators are pushing to either ban outright or regulate out of existence these payday loan businesses.  But those groups and individuals opposing payday lending do not address the issue of the demand for consumer credit options.  These opponents generally push simply to eliminate payday loan and cash advance businesses within the State, and do nothing to replace the now un-available source of credit with another financial product that would provide an acceptable credit alternative.

Statistics from these consumer advocate groups, such as the Center for Responsible Lending are often times criticized for being biased and yet again does not address any viable options to replace payday lending.  An independent staff report by the Federal Reserve of New York studied the effects of banning payday loans in Georgia and North Carolina.  The staff report addresses many of the biases of the CRL’s widely-publicized “statistics” and goes on to make the proper corrections to these numbers.   The report summarizes that the “debt-trap” hypothesis is incorrect and that the majority of payday loan customers use their advance loan responsibly in order to avoid more costly overdraft fees or bounced checks.  The report also shows that consumers were worse off once payday loans were banned, and they filed more complaints against lenders.  It seems that many customers went to  online lead generation websites in order to get a loan.  These lenders can be un-regulated and will sometimes dodge State laws and regulations as opposed to regulated direct lenders such as Solomon Internet Funding.

It seems that regardless of regulations, the demand for access to consumer credit does not simply disappear.  Unless this need is addressed and other options are given to consumers, the demand for responsible and regulated payday lending will continue to exist, especially during our economic crunch.

Some lenders are really misusing their lending power and making more profits in short term. In 2008, one of the global payday lender has got fined by the Illinois dept of Financial and Professional Regulation. It is the largest fine around $234,000 in Illinois history for exceeding the $15.50 per $100 limit on charges for payday loans. Many payday lenders are closing their business due to this kind of complaints.

So it is our responsibility to complain against this kind of lenders to the rightful authorities. If you find that a lender is trying to misguide you or if he is charging more than the limit don’t wait even a minute. You have rights and we have law. This way you save yourself and you also save other people.

Be caution, think wisely choosing a good payday lender online. ]]> http://paydayloan-blog.com/payday-loans-ignoring-legal-restrictions/feed/ 0 http://paydayloan-blog.com/what-is-the-process-of-getting-a-payday-advance-loan-quickly/ http://paydayloan-blog.com/what-is-the-process-of-getting-a-payday-advance-loan-quickly/#comments Tue, 03 Aug 2010 10:56:17 +0000 ash http://paydayloan-blog.com/?p=128 If you are looking for a payday loan for your emergency needs and you doesn’t know the process how it get it! Yes your are at right place now. This article is about how the payday loans work and people easily get it in a day.

Applying for a payday loan is so easy. They actually meant for short-tern needs. It’s a Fast Money Loan. But, before you go for it, you should know how it works. They are basically cash based loans. You get the loan amount based on paycheck you submit them as a security. The amount you barrow is all depends on the current earnings you have. They only see your repayable capability and very minimal documentation. Remember that if you are not able to pay off the loan amount in time, your post dated check will be encashed by your payday lender.

When it comes to documentation, you should submit your proof of citizenship (you should be an American), proof of your employment, address proof and of course a bank check. Once you collected all these documents either you can approx a broker or you can directly apply online. You need not to stand in long ques. Just switch on your computer and open a payday lenders website and apply online. They will respond you within hours time and your loan amount will be directly credited into your bank accounts. That’s why we call them Quick Cash Loans. ]]> http://paydayloan-blog.com/what-is-the-process-of-getting-a-payday-advance-loan-quickly/feed/ 0