Finding Alternatives To Payday Loans
by Thomas Vargo
Many consumers today are taking out payday loans for emergency cash because they may have bad or no credit to get approved for a more traditional credit card or personal loan. Unfortunately, due to the high outrages interest rates these payday lenders charge, it becomes hard for a consumer to get out of the cash advance lending trap. Payday lenders charge a weekly interest rate of up to 15% and they require the borrower to write a post dated personal check of the entire amount due on their next payday. A payday lender will give a consumer a loan on most of their future paycheck. When the borrower repays the loan, it leaves them with little choice but to take another one out the next day. I call this the cash advance lending trap. If you repeat this on a weekly basis, your giving up over 60% of one week's paycheck to them a month. These companies knowingly encourage these loans and they make it a point to tell the borrower that he or she is eligible to return the next day to take out a new loan. Some borrowers get so discouraged from getting farther into debt each month, because of the high amount of interest they are paying these payday lenders each month, they get forced into taking out additional payday loans with other lenders. This pushes them into a more severe cash advance trap, by taking out payday loans to pay back payday loans.
There are other alternatives to payday loans for emergency cash. Consider the possibilities before choosing a payday loan. First, ask your creditors for more time to pay your bills. Find out what they will charge for that service as a late charge and if additional finance charges or a higher interest rate will apply. Second, develop a budget, and figure your monthly and daily expenses. Avoid unnecessary purchases. These additional costs add up. Third, build some savings because even small deposits will add up over time that can help you to avoid borrowing for emergencies and unexpected expenses in the future. Finally, find out if you have or can get overdraft protection on your checking account. If you are regularly using most or all of the funds in your account and if you make a mistake in your checking account records, overdraft protection can help protect you from making further credit problems.
If you need help working out a debt repayment plan with creditors or developing a budget, contact a non-profit consumer credit counseling service. These non-profit groups are available in every state and offer credit guidance to consumers.
If you decide you must use a payday loan lender, borrow only as much as you can afford to pay with your next paycheck and still have enough to make it to the next payday so you do not caught in the cash advance lending trap.
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Breeding Discus Fish
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Many consumers today are taking out payday loans for emergency cash because they may have bad or no credit to get approved for a more traditional credit card or personal loan. Unfortunately, due to the high outrages interest rates these payday lenders charge, it becomes hard for a consumer to get out of the cash advance lending trap. Payday lenders charge a weekly interest rate of up to 15% and they require the borrower to write a post dated personal check of the entire amount due on their next payday. A payday lender will give a consumer a loan on most of their future paycheck. When the borrower repays the loan, it leaves them with little choice but to take another one out the next day. I call this the cash advance lending trap. If you repeat this on a weekly basis, your giving up over 60% of one week's paycheck to them a month. These companies knowingly encourage these loans and they make it a point to tell the borrower that he or she is eligible to return the next day to take out a new loan. Some borrowers get so discouraged from getting farther into debt each month, because of the high amount of interest they are paying these payday lenders each month, they get forced into taking out additional payday loans with other lenders. This pushes them into a more severe cash advance trap, by taking out payday loans to pay back payday loans.
There are other alternatives to payday loans for emergency cash. Consider the possibilities before choosing a payday loan. First, ask your creditors for more time to pay your bills. Find out what they will charge for that service as a late charge and if additional finance charges or a higher interest rate will apply. Second, develop a budget, and figure your monthly and daily expenses. Avoid unnecessary purchases. These additional costs add up. Third, build some savings because even small deposits will add up over time that can help you to avoid borrowing for emergencies and unexpected expenses in the future. Finally, find out if you have or can get overdraft protection on your checking account. If you are regularly using most or all of the funds in your account and if you make a mistake in your checking account records, overdraft protection can help protect you from making further credit problems.
If you need help working out a debt repayment plan with creditors or developing a budget, contact a non-profit consumer credit counseling service. These non-profit groups are available in every state and offer credit guidance to consumers.
If you decide you must use a payday loan lender, borrow only as much as you can afford to pay with your next paycheck and still have enough to make it to the next payday so you do not caught in the cash advance lending trap.
Betta Fish Care
Breeding Betta Fish
Discus Fish Care
Keeping Discus Fish
Breeding Discus Fish
Dragon Tattoo Designs
Tribal Tattoo Designs
Japanese Tattoo Designs
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