Posts Tagged ‘beforre obtaining payday loans’

3 Tips On Why You Must Think Twice Before Obtaining A Payday Loan

There is a wide array of reasons why you must think twice before obtaining a payday loan. It is no more a hidden secret that payday loan cash advances are very risky loan programs that often push the borrowers into a vicious cycle of debt. That is the reason why it is also termed as predatory lending; in fact, many states have even banned all sorts of pay day loans because of the same reason. Despite all that, if payday loans have still been a very popular financing option for those who often have to face cash crunch and look for instant money solutions, it is only because of the simple reason that payday loan companies have been doing some aggressive marketing regarding these loan products. Just search for payday loans on Google or in any other search engines and you will be bombarded with thousands of websites that promote payday loans and fast and easy financing solutions to almost everybody that has a regular source of income and a bank account in his or her name. If you want to protect your finances, you must keep the following three tips in my mind.

You Get Lower Amount Of Money Than What Is Written On The Check Issued By Your Lender

There are several things that you need to keep in mind before obtaining a payday loan. The first thing that is very important for you to understand is that the check that you are issued by the lender mentions the exact amount of money that you are borrowing, but when you get the same deposited into your bank account, you actually get less than the written amount on check. For consumers, it looks like the bank is charging certain fees as processing fee, but in reality, it is the payday loan company (you are borrowing from) that charges the fees. In shorts, these are hidden charges that you are usually not told about.

Borrowers Often Fail To Arrange Enough Fund In Their Account On The Set

Due Date To Ensure Timely Repayment

The next big thing that you need to keep in mind before obtaining a payday loan is that it is usually very difficult for the vast majority of the borrowers to arrange enough funds to ensure timely repayment; the main reason behind this is the extremely high interest and other charges that payday lenders charge. For every $100 of loan that you borrow for a small period of fourteen days, you have to pay back over $150. This is just an example;; the actual figure ca be much higher depending upon the payday loan company you are borrowing the cash advance from.

There Are Specific Payday Loan Laws In Almost Every State

Before obtaining a payday loan, you are also strongly recommended to educate yourself about the payday loan laws applicable in your state. It is very important for you to keep in mind sixteen states have already banned payday lending while every other state where these types of loans are stll legal have imposed certain restrictions on lenders,, such as the maximum rate of interest they can charge, maximum limit on additional charges, and restrictions regarding other predatory provisions, such as automatic rollovers.

In short, payday loans are easy too obtain, but can be very risky and highly costly.

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Basic Things You Must Know About Bankruptcy Dismissal

When you file a petition for bankruptcy and the court rejects your petition on certain grounds, it is legally termed as bankruptcy dismissal. Dismissal means your case is officially closed and that the court will make no further rulings on your case. Some of the most common reasons why a petition is...

Credit Repair

Building Credit With No Credit

When it comes to building credit with no credit, there are several online canadian pharmacy factors that you need to take into account. Just because you do not have any credit history at present, it does not mean you will never have one. No one is born with a readymade credit history. You have to gi...

Credit Repair

A Loan To Defeat All Loans Debt Relief Loan
Payday loans fax-free payday loans and instant online payday loans are everywhere be it on the Internet newspapers or television. Today when the economy is in turmoil these loans look like the saving gra... Read more

Tips On How To Consolidate Payday Loan Debt
You may need to consolidate payday loan debt when you are caught in the middle of a financial crisis arising out of your inability to repay multiple loans. Debt consolidation loan allows you to consolidate all... Read more

Do Not Put Up With Debt Collectors Harassment
There was an emergency and the need arose to take a payday loan. It seemed to be the fastest and the best option available then. However now the debt collectors harassment is horrendous. The fact that using t... Read more

Consolidate Payday Advances To Save Yourself
Payday advances are loans taken against a persons paycheck. They have a way of digging into your paycheck month after month. They usually have exorbitant interest rates though the sites offering the services... Read more

Can I Consolidate Payday Loans
Can I consolidate payday loans is a question you are sure to ask yourself when faced with a trying financial situation. When payment of loans becomes difficult it is possible to consolidate and replace many... Read more

What are the pros and cons of debt consolidation?