Payday Loans ? The Legal Loan Sharking Industry
Laws have been created to protect people against "Loan Shark" practices in which short-term loans are given out at excessive interest rates. There is an industry that has come of age the last couple of years that has circumvented these laws. Enter the Payday loan industry.Payday loans is a some-what new multi-billion dollar industry in which people borrow money to tithe them over until their next payday. These loans also go by the names cash advance loans and paycheck loans. They prey on the lower class that find themselves short of money before a payday.The one thing to consider when looking into a payday loan is the APR or Annual Percentage Rate that these loans carry.
At first glance, you may think paying $240.00 for a loan of $200.00 for two weeks is ok. The A.P.R of this loan comes to a whopping 520%. That is the amount this loan would cost if played over a years time. Compare this with a high interest credit card of 29%. When you see it compared to these numbers, you can see they are not the bargain you first thought it was.A representative from a payday loan company has agreed to be interviewed for this article on the condition his identity and that of his company be anonymous.I asked him, how can they can justify such enormous interest charges.
His reply was "Because we can. There are loopholes out there that allow us to do this. This is a high risk loan for most cases so we need to charge enough to cover bad loans and to make a profit."When asked about if payday loans are ever a good idea, his response was "Sure. For example if you will be late on a credit card payment of $70.00 and will be charged a late fee of $30.00 then the APR of the payday loan justifies getting one. You will save points if you get a payday loan and not pay the higher interest rate of the late fee."When you should get a payday loan:There are times when payday loans are justified as discussed above.
The primary example when your late fees are more expensive than the late fees paid to your creditors.Another non-tangible justification is when you can avoid getting reported for a late payment. This can be far more expensive than any payday loan fee in that it could affect the cost you pay for future loans. This is especially true if it's your mortgage or car payments.Yet another reason to get a payday loan is that you determine that the cost is worth it to you personally. If you are headed for the long awaited vacation and could use a few extra bucks to enjoy and can afford the fees then you should look into this.A final thought on when you should get a payday loan is if you need that cash and it's free. That's right free.
There are a many sites out there that charge ZERO interest to all first-time customers. One such site can be found at Low Cost Payday Loans and No Fax Payday Loans.What to look for when getting a payday loan:The first thing to look for is the APR. Federal law has made it so that every lender must disclose the cost of any money borrow through a Truth in Lending Disclosure. This must break down the cost by APR (Annual Percentage Rate). This is the first thing to compare loans by.Another thing to look for is the length of the term.
If two companies charge the same rate for every hundred dollars borrowed but company A has a term of up to four weeks and company B has a term of two weeks, then go for Company A and take advantage of the extra four weeks. The APR of Company A is half of Company B. The reason this differs from the first item is that sometimes they base APR on a fixed amount of time (two-three weeks usually). When you read the fine print that the fee charge is fixed and may allow you to pay it back in a longer term such as four weeks.The bottom line:Do your homework when getting a payday loan and look for free to low cost payday loans if possible. The money you save can be substantial.Finance Consultant AtLow Cost Payday Loans.INFO ..
R Vigil is an author, webmaster, and financial advisor for LowCostPaydayLoans.INFO .No Fax Payday LoansNote to Publishers: Publish article as is with html links please.Emergency Payday Advance
Payday Advance companies often come with enticing ads such as "E-Z Payday Cash..."
"Cash at your doorstep on the same day.." etc. on the FM, TV, Internet, and in mailboxes. And they come up with a range of words such as cash advance loans, check advance loans, or deferred deposit check loans.
They are indeed easy to secure.
But are they economical?
Let's imagine someone named Ellen borrowing $300 from a lender ? creditor for a two weeks period.
According to the agreement, she writes a personal check to the lender for $345 (this includes the borrowed amount $300 and a $45 fee).
In the above example, the interest fees of $45 is the equivalent of $1,170 for a year, or 390 percent APR.
This is far higher than the APR announced by institutions such as Bank of America for loans.
But the latter require collaterals, real estate to mortgage or some other security.
Not easy for everyone.
On...
Payday loans > Emergency Payday Advance
No Fax Payday Loans Online for a Fast Cash Advance Loan
For a fast cash advance loan, no fax payday loans are now available online. By completing your application online, you don't have to fax paycheck stubs or forms. Your application can be approved within minutes, and you can have your cash advance available in your checking account the next day. Online Payday Loan CompaniesThe internet has brought sped up the approval process for payday loans. Using technology, payday loan companies are able to process applications within minutes.
You can also shop payday loan rates by reading their online information. Reputable companies will post their rates and fees.What You NeedBefore you start filling out your cash advance loan application, gather the necessary information first. You will need to provide contact information as well as your job history. Most payday loan companies require you to have worked at least 90 days at your current job or have at least $800 a month in income from social security. You will also need to provide...
No Fax Payday Loans Online for a Fast Cash Advance Loan
Payday loans > No Fax Payday Loans Online for a Fast Cash Advance Loan
PayDay Cash Advance Loans - The Benefits of Using the Payment Protection Plan
Payment protection plans are offered by payday companies to protect you in any number of unexpected situations. The payment protection plan is an inexpensive form of insurance that payday companies offer on all payday loans. The types of things covered by payday payment protection plans include illness, unemployment, layoffs, death, and injuries. These payday protection plans offer peace of mind and security for your payday loan advances. When you have the payment protection plan you will not need to worry about the unexpected, you will already be completely prepared for it.
The payment protection plan was designed with unexpected layoffs and terminations in mind. If you are released from work either temporarily for an unscheduled layoff or are terminated during the duration of your payday loan then the payday payment protection plan will cover the cost of your loan and your loan will be paid in full by the payday payment protection insurance company. This gives clients a sense...
PayDay Cash Advance Loans - The Benefits of Using the Payment Protection Plan
Payday loans > PayDay Cash Advance Loans - The Benefits of Using the Payment Protection Plan
Back to School Shopping Tips for Students
For most parents, late August and early September means back to school. This is the time to start buying school supplies for your children--clothing, bags and the inevitable decisions and arguments about whether to buy brand name or no name products.
If you are a parent buying for your grade school children, you have been learning the ropes for a few years now. Even so, if your child is new to school or you are doing your own school shopping for the very first time, you can learn...
Payday loans > Back to School Shopping Tips for Students
Selecting a Laptop
Small Can Be Beautiful When purchasing a new computer, you may be better served by a laptop than a traditional desktop computer. Recently, laptops with capabilities similar to desktops can be purchased for a comparable price. Laptops are convenient because of their small size and ability to run from a battery. Except for the power cable to recharge it, a laptop doesn't have any external wires, so it won't be contributing to a cable mess. When looking at laptops, consider how often you will travel...
Payday loans Payday Loans ? The Legal Loan Sharking Industry laptop
Payday loans > Selecting a Laptop
Website Offers One-of-a-Kind Greeting Cards with Personalized Poems
(ContentDesk) December 7, 2005 -- A new e-commerce web site that offers "traditional" greeting cards with fun, personalized poems for that special someone is now available on the Internet.????Launched by Cleveland-based female entrepreneurs Deb Solyan and June Poole, www.IambicChick.com is simple to use. Site visitors pick their own occasion and card front then answer a few questions about the card's recipient....
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Payday loans > Website Offers One-of-a-Kind Greeting Cards with Personalized Poems
Discount Cruise Vacations
Most people are always looking for discounts, whether at a supermarket, mall or you name it. Wherever it reads discount that's where the crowd heads! So let's take a look at discounted cruises to see if they are worth your while.
Its always good to have an experienced hand guide you when you are looking for a discounted cruise vacation, and to provide us with the necessary information are various sites like Cruisemagic.com, Compare cruise.com and Airfarecruisesavings.com, to name...
Payday loans > Discount Cruise Vacations
Arizona Mortgage Company Launches Site Specific to 3/1 ARM Mortgages
American Mortgage Specialists is proud to announce the purchase of http://www.3yearARMs.com, a website devoted entirely to 3-year Adjustable Rate Mortgages (ARM loans). Michael George, branch manager of American Mortgage Specialists purchased the domain name from a Nevada corporation that specializes in internet marketing for mortgage companies: KOG Enterprises, Inc."KOG has helped us bring in a great deal of new business over the past several...
Payday loans Payday Loans ? The Legal Loan Sharking Industry Arizona Mortgage Company Launches Site Specific to 3/1 ARM Mortgages
Payday loans > Arizona Mortgage Company Launches Site Specific to 3/1 ARM Mortgages
Discount Home Appliances
Get a cookery course free when you buy a microwave and the dinner set with a dishwasher. What is it with the festivals that the seasonal sale comes along with a mad rush in its wings; unbelievably the cost of installation and delivery of these appliances is not your headache anymore. Small appliances, smaller prices and bigger utilities, the festivals could never be better for the buyers.
Let's accept it that shopping in the city markets is just a test of patience, thanks to the online...
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