Over the past few years payday loan debt has grown exponentially around the world. The economic downturn has had such a deep impact on people that they have had to turn to these types of high interest loans just to survive. Many people in the payday loan industry are reaping great rewards from the financial crisis that put many people out of work and in need of financial assistance. Read more
The probability of running into illegal companies when dealing in the state of Massachusetts payday loans is very high. Regular payday loans are illegal in this state, and companies either run under the small loan or criminal usury laws, or the are running illegally.Yes they do operate outside the law, and it is hard to tell which ones are legit.
If you have used one that is not within the law you will only be responsible for the principal borrowed, and no other charges. Read more
First let’s outline what a payday loan is.
Payday loans are a type of debt individuals obtain from short term lenders. These lenders provide the loans usually for about two to three weeks at which time the total amount, plus a fee is due to be paid back.
The problem with this type of debt is that many people find it difficult to get back on track and repay the debt in full with their next paycheck and many people end up re-loaning. Read more
Many of the emails and phone calls I get everyday are people asking what options they have for getting out from under their payday loan debt.
And the one question I get most is people asking if they can consolidate their payday loans and the great news I get to tell them is you sure can.
There are two options for consolidating payday loans, however one of the options may not be available to most people let me explain.
Anyone can head to their local bank and fill out an application for a consolidation loan, however all banks are going to check your credit rating and if it is not up to snuff you will in many cases be denied your consolidation loan.
Now if your credit is fine the bank is also going to ask for some collateral to support the loan the bank manager may like you but they need some sort of insurance that they can get their money back from you one way or another.
Here is the problem with collateral – many people do not have enough collateral to support a consolidation loan if you have a car or truck thats great and it may be enough depending on the year and condition.
But if you have lien on your vehicle you cant use it as collateral the bank needs something of value with no liens on it.
And because of these two conditions from the banks many people cannot get a traditional consolidation loan, but fear not there is another option that everyone qualifies for.
And that is a consolidation program unlike the bank you do not need good credit in fact consolidation companies that offer these programs dont even do a credit check how great is that!
Second you do not need any collateral for this loan because its really not a loan. Read more
In the beautiful state of Louisiana, with more than 4.5 million people, and a median family income of $43,000 its not one of the most wealthiest states in the country.
In fact, many of those living in the state live well below the federal poverty line. And because of this many individuals find themselves in financial situations they cannot get out because they do not have the financial resources.
And not everyone has a rich family member or friend that can help them out when it comes to getting cash in a hurry when a financial emergency pops up.
So many people have no other option then to turn to lenders for payday loans. Read more
Payday loans in the UK are increasingly taking centre stage in the financial market due to the aid they give to local citizens. However, there are some critics who have come out strongly to object these services stating that they are horrendous and all they do is exploit the citizens.
Firstly, they note that payday loans drain money from low-income communities. Read more
Now I have run across some interesting laws going from state to state in my research of payday loans, and the payday loan laws in Michigan state did not let me down in being unique.
Payday loans are legal in the state of Michigan,. and payday loan lenders in Michigan must be licensed.
On the surface it seems this state is out to protect the borrower. Read more
I have seen so many people get stuck in so many bad situations when taking out payday loans. Let talk today about how to escape an online payday loan trap.
What it it?
If you have ever taken out an online payday loan you know what I am talking about. Unless you paid it back in full on the first due date, you probably ended up in the trap yourself. What I call the trap is when you take out a payday loan and you agree to the terms of the online company and let them debit your bank account for their payments.
What is wrong with that?
Most people are in such a hurry, and know they could have their money in their bank account within 24 hours, that they do not pay attention to the terms, and when a company is charging up to 400% APR you must pay attention.
Most online companies will charge an extremely high rate to borrow the money, and it will be a recurring payday charge unless you specify otherwise with a phone call within 3 days of the due date.
Did I lose you?
Thought so, and the loan companies are counting on you getting lost too, in a very big way.Lets take a closer look to see why.
A 2 week payday loan of $500.00 Interest on this loan for the 2 weeks: $150.00 Total loan payoff on your next payday $650.00
That is a pretty stiff charge to borrow $500.00 for two weeks, but so be it. Read more
Like many states Hawaii has had the payday loan industry in place for several decades allowing anyone to obtain a payday loan.
Unfortunately the state does not have an overall high income and many areas are poor so the state is finding more and more people are using payday loans for one reason or another.
One of the most common reasons people are using these payday loans is usually a financial emergency has popped up and they dont have the extra money to cover it.
Nevertheless, consumers are being taken advantage of when they take out such a loan. Read more
The Delaware state payday loan laws are another example of perfect bait for the payday loan trap. They define payday loans under the small loans law in Delaware, thus allowing the lending companies to charge any interest rate the borrower will agree to pay.
This is an open ticket to being taken advantage of. Read more