short term – 4x Circle http://4xcircle.com/ Tue, 18 Jan 2022 09:27:27 +0000 en-US hourly 1 https://wordpress.org/?v=5.9 https://4xcircle.com/wp-content/uploads/2021/11/icon-120x120.jpg short term – 4x Circle http://4xcircle.com/ 32 32 Best Online Payday Loans: 2022’s Top Guaranteed Payday Loan Direct Lender For Same Day Loans & Personal Loans| Get Fast Cash Short Term Payday Loans Online From These Popular Direct Lenders https://4xcircle.com/best-online-payday-loans-2022s-top-guaranteed-payday-loan-direct-lender-for-same-day-loans-personal-loans-get-fast-cash-short-term-payday-loans-online-from-these-popular-direct-lenders/ Tue, 18 Jan 2022 08:25:15 +0000 https://4xcircle.com/?p=686 Are you facing an emergency situation and in dire need of money? Are you broke and your friends or family members are currently unable to lend you some cash? Well, you DO have an easy and trusted option to turn to — payday loans. These types of loans could help cover your grocery cost, doctor’s […]]]>


Are you facing an emergency situation and in dire need of money?

Are you broke and your friends or family members are currently unable to lend you some cash?

Well, you DO have an easy and trusted option to turn to — payday loans.

These types of loans could help cover your grocery cost, doctor’s visit, car repair, or home renovation and overcome any other kind of financial crunch you may be facing.

These loans are offered for minimal amounts, and many lenders set a boundary on payday loan size. The usual loan limit is $500, though the limit may be above or below this amount.

A payday loan is often repaid in full on the debtor’s next payday or when additional income is obtained, such as from a pension or Social Security. The loan’s due date is usually two to four weeks after the loan is approved.

You may not necessarily have to take this loan from payday lenders in your town. You can connect with all the leading online networks that work with numerous lenders across the country and get approval for an online cash loan.

Apart from driving around the town and looking for direct lenders for online payday loans, you can just submit a form sitting at home that ties you with lenders who are looking forward to working with you based on your requirement. You can find installment loans or short-term loans on the networks that we suggest. The money will be deposited straight into your bank account within 24 hours.

Top 4 Online Payday Loan Facilitators

  1. Money Mutual: Most Popular Platform Online Payday Loans
  2. BadCreditLoans: Best Payday Loan Facilitator For Online Loans
  3. CashUSA.com: Get Quick Approval Of Same Day Loans
  4. PersonalLoans.com: Best Online Lender For Personal Loans

#1. Money Mutual: Most Popular Platform Online Payday Loans

Money Mutual is one of the top-ranked leading online marketplaces for numerous reasons. First, it is a famous network because it helps borrowers connect with the lenders and get the cash within 24 hours. This lender has been helping people with money in times of emergency with the help of short-term loans of up to $5,000 because of its network with a lot of money lenders out there. The loan application is simple and takes only five minutes to complete.

How It Works

The first step would be visiting the official website and filling out the application form. Once your application is submitted, the platform/facilitator will send it to 60 or so lending companies to find you a suitable lender for you. If a lender chooses you and wants to work with you, the website will redirect you to that lender’s website.

From there, you can look into the terms and conditions of the loan and the type of service you want from them. They will contact you through phone or email to know more about you. If the lender is all set to go, you will receive an application with all the specific information, including:

  • The total amount
  • Interest rate
  • Loan term
  • Payment dates
  • Fees and other charges (if any)

Then, it will be your job to go through the information carefully because here, Money Mutual will not interact between you and the lender. If you do not agree to the terms and conditions, you have an offer to cancel the deal. But, if you accept the terms and conditions, there will be a contract where you have to sign.

Eligibility Criteria

  • You have to meet the below-mentioned eligibility criteria if you want a payday loan:
  • Minimum 18 years of age
  • A resident or citizen of the US
  • Have an income of at least $800 per month
  • Have a checking account
  • Have a valid mobile number and email address

Highlights

Flexible Credit: As Money Mutual works with several lenders, customers have a choice to apply for short-term loans, irrespective of the credit scores. Through Money Mutual, you can choose the terms to your requirements.

Faster approvals: Money Mutual is great for last-minute emergencies, as it offers loans in a few hours, and at times, even minutes. Because of its huge network, it does not take long to get a loan. Simply visit the website and fill out the form.

No Extra Fees: Money Mutual doesn’t require any fees at the time of filling the form and is free of cost. There are no hidden charges. When you are connected to the lender, it might ask for a fee, but when it comes to Money Mutual, it is free.

Simple Online Form: Money Mutual uses an online form that is easy to use, and the form can be filled out in less than five minutes.

Pros

  • No extra fees
  • User-friendly website
  • You can get a loan in hours or sometimes even in minutes
  • No lengthy form-filling procedure
  • Easy approvals

Cons

  • Money Mutual won’t be responsible for any problems you face after you sign the deal
  • Available only in the US, barring New York and Connecticut
  • A regular source of income is required

=> Click here to visit the official website of MoneyMutual

#2. Bad Credit Loans: Best Payday Loan Facilitator For Online Loans

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Bad Credit Loans isn’t connected directly with the lender, but it refers the borrowers to trustworthy lenders and financial service providers that can offer a quick payday loan. This loan is known for its amazing job of explaining how bad credit loans work. It is also known for its commitment to connecting the borrowers to the lenders till the former gets the loan. The site uses innovative encryption technology to keep your information safe and secure.

Bad Credit Loans saves your information and privacy and have 24/7 customer support. You can always go through the terms and conditions before accepting the agreement. You have the option to take a loan of up to $10,000, which is different from all other loan companies.

How it works

As soon as you complete the form, the information is viewed by the lenders. If a lender is ready to work with you, you will be readdressed to the website directly, where you will complete the rest of the forms. Go through the terms and conditions carefully and agree to your preferred deal.

The APRs vary from 5.99% to 35.99%, and the reimbursement tenure ranges from three to 60 months. Bad Credit Loans helps people who do not qualify for a loan because of their low credit scores.

Eligibility Criteria

  • The minimum age requirement is 18 years.
  • The citizen should be a resident or citizen of the US
  • The applicant must be employed
  • Social Security Number is a must
  • A checking account is a must
  • Phone number and email id are required

Highlights

Security: Bad Credit Loans protects your personal information with the help of data encryption technology. Your information will be safe.

Your terms: Fill out the form anytime you want. Whenever you receive a loan offer, make sure to read the terms and conditions carefully.

Other Services: If you couldn’t find a loan based on your requirements, Bad Credit Loans help you connect with other offers that might be useful for you.

Customer Support: The amazing customer service team can be reached anytime.

Loan Amount: Borrowers can take a loan ranging from $500 to $10,000 in a day.

Pros

  • Easy approvals
  • The credit score is not a requirement
  • Free service
  • Wide network of lenders
  • The money will be deposited into the bank account as soon as possible

Cons

  • APR can be high
  • APR is different for every borrower

=> Click here to visit the official website of Bad Credit Loans

#3. CashUSA.com: Get Quick Approval Of Same Day Loans

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After Money Mutual and Bad Credit Loans, we recommend that you check out CashUSA.com as a payday alternative. The company is very direct about the interest rates on the loans and will make you understand the terms and conditions.

The interest rate varies from 5.995% to 35.99%, with a loan period of 90 days to 72 months. The website explains how a personal loan above $1500 of more than two years looks with an APR of 7.9%. Each month’s payment for two years will be $67.77 for a total reimbursed amount of $41,626.54.

This loan network protects your personal information with industry-standard encryption. You can request a personal loan using CashUSA.com’s straightforward online approach, and if a lender approves you, you can get the funds in one working day. If you have a bank account and personal information ready before initiating the request, you might be able to get it sooner.

How it works

To get a payday loan from CashUSA.com, start by filling out the application form on its website. Start the procedure by providing your name, email, and the amount you need for loans.

It’ll provide you with a variety of personal information, including:

  • Normal credit range
  • Social security number
  • Any personal information
  • Bank account type and information on deposit
  • Car or house ownership
  • Monthly income
  • Job title

This might seem a lot, but the process takes only a few minutes. Once your information is verified, CashUSA.com sends you a complete list of lenders in the network to analyze the loan request.

Eligibility Criteria

  • You have to meet the below-mentioned eligibility criteria if you want a payday loan:
  • Minimum 18 years of age
  • A resident or citizen of the US
  • An after-tax income of $1,000 per month
  • A checking account is a must
  • A working phone number and a valid email id

Features

Easy Online Process: It will take you only minutes to fill out the form.

Better Chances of Loan: Cash USA does ask for a lot of information, including employment data. The purpose is to connect you better with a lender. The more they know about you, the better are your chances of getting a loan.

Fast and Convenient: Filling out the form is pretty fast and straightforward. They can ask you for a lot of information. Still, the procedure is hassle-free.

No Fees: CashUSA is not a lender. Its service is free of cost for all users. The third-party lenders it connects you with might ask for fees, but not CashUSA.com.

Pros

  • Suitable lenders will contact you and quickly.
  • Custom-made loans to suit your history and requirements
  • Available in all 50 US states
  • The loan gets approved within hours
  • Additional resources available
  • The terms and conditions are easy to understand

Cons

  • Cash USA is not a direct lender
  • A maximum loan amount of $10,000 can be borrowed
  • The interest rate goes up to 35.99%
  • You won’t know which lenders are viewing your loan request

=> Click here to visit the official website of CashUSA

#4. PersonalLoans.com: Best Online Lender For Personal Loans

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Personal Loans can help you get a direct loan ranging from $500 to $35000. That maximum amount is generally not what you need for a payday loan because you’ll most likely want to repay it when you get your next salary, just like a cash advance loan. Smaller short-term loans are easier to repay, which is something PersonalLoans.com helps borrowers with by locating lenders who work with people with poor credit but require cash for an emergency.

This network is easily available to you, and requesting a loan using an online application form does not take long. It also doesn’t demand a lot of information, making it simple to complete in a short time. Lenders will review your application and determine whether you are eligible for a loan.

How it works

Once you have completed filling out the form, the information is viewed by the lenders, and they will decide whether they want to work with you. If a lender is ready to work with you, you will be redirected to the website, where you will complete the rest of the forms. Go through the terms and conditions carefully and agree to the deal accordingly. The money will be deposited into your account as early as possible.

Eligibility Criteria

  • You have to meet the below-mentioned eligibility criteria if you want a payday loan:
  • Minimum 18 years of age
  • You should be a resident or citizen of the US
  • You must be employed
  • Social Security Number is required
  • Proof of income is required
  • A checking account is required
  • Phone number and email id are a must

Highlights

Reimbursement Procedure: You can choose a smaller reimbursement period. So, if you choose to reimburse between three and 72 months, you will have a lot of flexibility. It’s good to pay off the loans earlier to avoid the interest charges.

Loan Amount: The amount ranges between $500 and $35,000.

Interest Rates: The interest rates start from 5.99% and go up to 35.99%

Privacy: Personal Loans protects your personal information with the help of data encryption technology. Your personal information that you share with it will be safe.

Fast and convenient: Easy form filling and faster deposits are the majors when it comes to payday loans, and PersonalLoans.com offers you just that.

Pros

  • A huge network of lenders, meaning that a lot of people get fast and easy approvals.
  • Money is deposited into the account within 24 hours
  • There are options if you want to reimburse before time
  • Low interest rates
  • No pressure of repayment
  • No extra fees

Cons

  • Higher APRs
  • The interest rates vary
  • Bigger loans can be hard to reimburse

=> Click here to visit the official website of PersonalLoans

What Are Online Payday Loans?

Just like every other loan, identification plays a major role here too. You don’t have to worry or feel tense about the application process, as it is very simple. You will be asked for proper identifications such as a driver’s license, passport, etc. Moreover, you will be asked to submit proof of your income, and this comprises recent payslips (last two to three months) and certification of employment.

Almost all online lenders get done with the borrower qualifications in 24 to 48 hours, whereas banks take up to a week or two. Also, payday loan procedures are simpler and take less time than conventional loans.

To repay the loan, you usually have to write a post-dated check for the total amount, including fees, or authorize the lender to digitally withdraw funds from your bank, credit union, or prepaid card account. The lender can cash the check or electronically remove money from your account if you don’t return the debt on or before the due date.

A payday lender usually does not examine your ability to reimburse the loan while meeting your other financial responsibilities. The loan proceeds may be sent to you in the form of cash or cheque, electronic deposit into your account, or a prepaid debit card.

Payday loans are only for borrowers who are aged 18 or above. Nothing can change this condition. It is common for all lenders to ensure you fulfill this category. Once all of the procedures and requirements are fulfilled, you will be notified about when you will see the loan amount in the account.

How We Prepared This List

Payday loans have been in demand, as they help you with the smallest of financial issues in your day-to-day life. Right from paying for a doctor’s visit to giving child support, a payday loan can come to the rescue. Due to the high demand, every other organization will be ready to give you a payday loan these days.

For this article, we visited several payday loans and online providers to find out the terms and conditions. That’s because numerous organizations promise to provide you with money and end up being a scam. New websites are being pushed to the top of Google because of its Search Engine Optimization even though they lack ratings or just make promises that they never fulfill.

To save you from the scam, we have made a list of the best payday loan providers. We compared their websites, customer ratings, loan options, and services. We understand that loans are as important as choosing the correct financing.

So, we started removing online payday loan companies that weren’t appropriate or looked like they could not fulfill all the requirements. We read the online articles about these companies and their eligibility criteria to prepare the final list.

What We Looked For

Types of loans: Every lender doesn’t offer all the products. Some might offer short-term loans, and some might offer long-term.

Prepayment Penalties: Whether there is any penalty if you repay before time.

Annual Percentage Rate (APR): A website with a reasonable APR.

Application Process: The documentation required to fill out the form.

Customer Reviews: Whether there is some kind of issue or they have a question, whether the customers are guided well.

Terms and Conditions: The terms and conditions of each platform for each type of loan.

Credit Score: Whether the company provides loans to people with a poor credit score (as low as 450).

Time Taken: How long does a company take to review your application or connect with the lender.

Transparency: The borrowers should have an idea about the interest rates, the dates of reimbursement, or any other additional cost.

Interest Rates: There should be no hidden charges that can increase the interest rates and create an issue for the lender.

Legitimacy: The website should be legitimate and able to deliver what it says.

Safety: How your personal information is safe and secure on the website.

Your Guide To Selecting Online Payday Loans

Here are a few factors to keep in mind when you select online payday loans.

Knowing what you need

You should know your requirements, like how much loan you need and why, and whether the amount will be enough.

Explore

Rather than choosing the first site that appears on the first page of Google, research several other sites to see which one is best suited for you.

Terms and Conditions

Before confirming the deal, you must read the terms and conditions properly so that there is no fuss in the end. Every platform has different terms and conditions. So, make sure you read them carefully.

Ask questions

Whenever you connect with a lender, make sure you ask everything you have in your mind. Leave no doubts unanswered.

Interest Rates

Try to find out the interest rates provided across several platforms. Go for the platform that has the best interest rate according to you.

Reimbursement Capacity

Do not borrow more than what you can reimburse. You may feel happy to see a large amount of money at the time of receiving the loan. But remember, you won’t feel so happy when it is time to repay the loan. You’d lose your mind if you borrowed an amount that is impossible for you to repay when you get your next paycheck. Borrow only what you require and not a cent more.

Temporary Use

The money you lend in the form of a payday loan has an emergency use and should only be used for that purpose. The cycle of taking loans can be frightening to handle at times. Always stick to your decision and try getting over a hard time with minimal amounts. These are meant for a temporary situation. So, keep it that way.

Rollover Attractions

It looks very attractive at the beginning, but when the time comes to repay the loan, it brings a lot of stress, anxiety, and more problems with it. When you take the loan, pledge that you will reimburse the amount as soon as the salary arrives. If it is delayed, you have to face the consequences.

Higher Interest Rates

Payday loans are convenient for getting cash quickly. But usually, they come with a high interest rate. You will be responsible for the lender’s fee and finance charges, which are not included in the loan amount.

Furthermore, if you do not reimburse the loan on time, you will be subject to even greater interest rates, which will burn a hole in your wallet. You should avoid payday loans if you have a low income.

Ask for a Licensed Moneylender

You should look for a licensed lender before borrowing. Thousands of lenders in the financial sector may be operating in an unsafe and illegal manner. As a result, many people are forced to work with cash suppliers who charge exorbitant fees and force people into debt.

Online Payday Loans: FAQs

Q: What is a payday loan?

A: A payday loan, also called Cash Advance, can be defined as an advance amount on the next paycheck. You can ask for a small amount through a short-term loan and reimburse it when you receive the next paycheck. Payday loans are meant to be used for short terms and not long terms.

Q: What kinds of documents are required for getting a payday loan?

A: The documents required for a payday loan are similar to the documents required for other kinds of loans:

  • State or Federal id
  • A valid checking account
  • A valid phone number and email id
  • Proof of income, such as bank statements

Q: Is there a cap on the loan amounts that can be borrowed on these platforms?

A: The loan amount varies from individual to individual. It depends on a variety of aspects, like the monthly income, your previous loans, and other creditworthiness aspects.

Q: What rates and terms are we talking about?

A: The Federal Truth in Lending Regulations lays out all details, such as the APR, interest rate, the total amount, and the finance charge. If you fail to reimburse the money on time, late charges might apply to your loan.

Q: Can I make a partial payment on the money borrowed over these platforms?

A: Yes, you can make partial payments on the loan’s capital without incurring extra fees. But the terms and conditions of such partial payments vary from platform to platform and lender to lender. Read the terms and conditions properly before committing to any loan agreement.

Q: Is there an option to pay off the loan before time?

A: Yes, you can pay off the loan early and make partial payments. If you feel within 24 hours of approval that you no longer need the loan, you may annul your loan for free. But make sure to read the section relating to this under the terms and conditions section of your agreement. Try to pay early reimbursements to save yourself from the charges.

Q: How do I reimburse the payday loan?

A: There are many options for reimbursing a loan. You can either pay cash in person, or make an online payment, or just deposit a check. You can also pay directly from the bank account.

Q: How much time does it take to get the approval and the fund transferred to my account?

A: For a physical loan application, the approval takes a few days. You go to the bank, stand in the queue, and wait for long hours before applying. But, for an online loan application, you can receive the funds within 24 hours or by the next business day.

Q: Is it simple to get additional loans on payday loans?

A: Additional payday loans are simple and efficient once you repay the first. Simply return to any facility and make a fresh loan request.

Payday loans should only be utilized for short-term financial requirements, not as a long-term financial solution. Consumers who are currently struggling with their credit should seek credit counseling. Furthermore, some states impose a cooling-off period to prohibit a consumer’s access to payday loans regularly.

Q: Why are there any negative comments relating to payday loans?

A: Since these loans have higher interest rates, creditors jack up fines and interest if they are not paid on time. People who keep taking loans and end up paying a lot on the high interest rates, eventually falling behind on their payments and coming under debt. A few creditors also impose harsher penalties if a borrower fails to pay on time. Paycheck loans have become far less popular because of all of these factors.

Q: Can I extend the loan?

A: Yes, you can. But you will be expected to pay a portion of your loan, in addition to any finance charges, after six extensions. Remember, the longer you extend the loan tenure, the higher you end up paying for the loan.

Q: After the first loan is paid off, when can I get another loan?

A: You may be required to produce a bank statement with the verification of a non-pending payment to show that the previous loan has been paid in full.

Q: What is the due date of the loan?

A: In most cases, the date is within 14 days after you receive your loan. Or, you can pay the charge and prolong the loan for another 14 days.

Q: Can I get an extension if I don’t have enough money on payday to cover the balance?

A: You must call the lender at least 24 hours before your scheduled due date to request an extension. You must pay the interest on the due date, and we encourage you to keep reducing your principal loan throughout the extension period. You will minimize the interest if you contribute more to the principle.

Q: Is it possible to have two loans from different lenders?

A: Yes, it is possible, as the law permits you to have the other payday loan if you already have one. Whether you will be able to get a second loan depends on your credit history.

Our Final Thoughts

Payday Loans can be an exceptional solution when you are in a financial crisis. These loans have a lot of advantages for employed people who are in urgent need of money towards the end of the month. Through this loan, you can pay off regular bills, grocery expenses or look into any other short-term need that you have at the moment.

Although these loans do have a high interest rate, a lot of people prefer them, as they do not involve any collateral or guarantor. Besides, these loans can also be used by people who have poor credit scores or a missing credit profile.

However, with these financial emergencies, you might get attracted to a lot of alluring loan options and supposed “loan approvals”. But you must be careful. They might as well be scams. Do not fall into the trap and go for any other alternative, like low-interest credit loans or borrowing money from friends and family.

In general, you should research payday loans and be aware of all the essential information before you think of getting a payday loan. This article consists of all the crucial points that you should know before applying for a payday loan. We have provided all information about the advantages and disadvantages of payday loans, too.

Moreover, we have only mentioned genuine loan companies. We hope this information will help you make a better decision, and you won’t fall prey to a scam. We also hope that you’ll find relief from your financial troubles.




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Reasons you might need to apply for a payday loan https://4xcircle.com/reasons-you-might-need-to-apply-for-a-payday-loan/ Sat, 18 Dec 2021 08:00:00 +0000 https://4xcircle.com/reasons-you-might-need-to-apply-for-a-payday-loan/ There are many reasons a person may need to apply for a payday loan. Payday loans, or short-term loans, are easily accessible loans that don’t require a particularly high credit score to get. If approved, they can be paid in hours. They are a favorite among borrowers, due to their convenience. Taking out a loan […]]]>


There are many reasons a person may need to apply for a payday loan.

Payday loans, or short-term loans, are easily accessible loans that don’t require a particularly high credit score to get. If approved, they can be paid in hours. They are a favorite among borrowers, due to their convenience.

Payday_Loan.png

Taking out a loan and not paying it back can hurt your credit score, so make sure you’re able to repay your loan if you’re approved, so borrow sensibly and for the right reasons.

This article will tell you some common reasons why people apply for payday loans:

Redundancy

Due to the COVID-19 pandemic, global unemployment is at an all-time high. Losing your job can be devastating, especially if you have a family and other responsibilities. Many people take out loans when they are laid off, to support them until they are financially stable again. According to a company that offers payday loans in Lacombe, Alberta, if you’ve used up all your money and have nowhere to go, a payday loan company might be your best option. That said, some lenders may not lend to you if you don’t have a job because you may not be able to repay the loan.

Debt Consolidation

Some people take out loans to pay off other loans or debts. If you are heavily in debt, you may consider taking out a loan to pay it off. This may sound counterproductive, but it’s actually a very good idea. While you’re still in debt, you can clear all of your current debt and then repay your loan on a flexible repayment schedule. If you’ve been owing money to a lender for a while and they’re threatening you with court, additional interest, and debt collectors, then a payday loan is definitely something to consider.

Friends and family

In difficult times, the first people called upon are his family and friends. Unfortunately, asking family and friends for money can be very uncomfortable and strain your relationship. Instead of borrowing from your relatives, you can take out a personal loan. Although you will have to pay interest, you will be able to avoid awkward conversations and make your loved ones uncomfortable.

Holiday loans

After a year of confinement, we all need a good vacation. If you want to give your family a vacation, but can’t afford to pay for it all at once, you might consider taking out a loan. Holiday loans are very common. If you’re planning on taking out a vacation loan, try to take out a loan and pay for your vacation well in advance. This will allow you to get your flights cheaper and allow you to take out a smaller loan. If you wait a few weeks before flying, you may need to take out a very large loan.

Building loan

In addition to relieving you of financial uncertainty, payday loans can also help you build your credit score. When you have bad credit, it can be difficult to get credit cards, mortgages, and other big loans. Payday loans, as we mentioned earlier, regularly accept people with bad credit. This means you can use a payday loan to boost your credit so you can borrow larger amounts from other lenders. It’s definitely worth building your credit, even if your credit is currently good. It can always be better.

Vehicle repairs

You can never predict when your car is going to break down. If you don’t have a lot of spare cash, you might be unable to pay to have your car repaired if it breaks down. A payday loan can ensure that you are covered should this be the case. Since payday loans are usually repaid the same day they apply, this means people can get their car fixed and back on the road quickly.

pay bills

If you haven’t been paid enough this month or have had to miss work, you can take out a payday loan to pay off your bills. Most people’s bills are under $300, which means you won’t have to pay much interest if you spread your payments over several months. This will allow you to pay your bills and avoid payment defaults. You should always pay your bills on time. If you don’t, your gas and energy suppliers may start charging interest to your account.

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Mortgage repayments

As we mentioned earlier, sometimes people take out loans to pay off other loans. This often happens with mortgage repayments. If a person is unable to work for a month and has no savings, it may mean that they are unable to pay their mortgage. Taking out a loan can be a great solution to this. This can allow people to get their mortgage payments under control and avoid falling into default, which could lead to them losing their homes. Mortgage repayments can be very expensive, especially if mortgage rates are not fixed.

Medical emergencies

If you live in a county where health care is not paid for by the government, such as in the UK, a loan can be very useful in the event of a medical emergency. This is especially true if you don’t have health insurance. Medical bills can cost an absolute fortune. If a person is unable to pay their medical bills, it may mean they cannot get life-saving treatment. A payday loan can help pay your medical bills and ensure you get the treatment you need. Remember, though, that most payday loans are capped at around $10,000.

There are many reasons why people take out payday loans. In this article, we have barely scratched the surface. In the end, anything that lets you down and prevents you from paying for something you need is reason enough to take out a payday loan.



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Michigan Board Approves Petition Wording for 2022 Payday Loans Vote https://4xcircle.com/michigan-board-approves-petition-wording-for-2022-payday-loans-vote/ Tue, 14 Dec 2021 08:00:00 +0000 https://4xcircle.com/michigan-board-approves-petition-wording-for-2022-payday-loans-vote/ A coalition that wants voters to decide how Michigan should cap interest rates on payday loans won approval on Tuesday for its sketchy wording for a petition to bring the issue to the November 2022 ballot. Members of Michiganders for Fair Lending told the Board of State Solicitors that payday loans — short-term loans with […]]]>


A coalition that wants voters to decide how Michigan should cap interest rates on payday loans won approval on Tuesday for its sketchy wording for a petition to bring the issue to the November 2022 ballot.

Members of Michiganders for Fair Lending told the Board of State Solicitors that payday loans — short-term loans with high interest rates — often trap people in a cycle of debt because the current law of l The state allows interest rates equivalent to over 370% annual percentage rate.

The petition calls for a ban on fees on payday loans that total more than 36% APR.

State law allows payday lenders to charge up to 15% on the first $100 of a payday loan, 14% on the second $100, 13% on the third $100, 12% on fourth $100 and 11% on fifth and sixth $100. . If someone takes out a $100 loan and takes two weeks to pay it back, they can be charged up to $15 a day, an APR of 391%, more than 10 times the cap proposed by the coalition.

A d

Payday loans are capped at $600 per loan, excluding fees incurred.

The ballot initiative would give Michigan residents an opportunity to have a say in the level of interest rates on these short-term loans, coalition member Dallas Lenear told the board and pastor of Journey Church of Grand Rapids.

Lenear and other petition supporters advocated for plain language in the petition summary, consistently using the term “payday loans” instead of “deferred current service transactions.”

The petition would require 340,047 signatures to be affixed to the November ballot. It would go first to the Legislative Assembly and then – if lawmakers didn’t pass it – to voters.

Republican political commentator Fred Wszolek said payday loan limits sound like a good idea on the surface, but fee caps could force legitimate lenders out of the market, leaving illegal lenders as the only option for those who need a short term loan. to lend.

A d

“The only ones that will disappear are the regulated guys with legitimate storefronts open in Michigan malls that you can walk into and talk to and hold accountable,” Wszolek said. “There is a huge unregulated industry there.”

Payday lenders market short-term loans as a quick fix, but they can often put borrowers in worse financial shape than before, said Habitat for Humanity Michigan President Sandra Pearson.

“We agree that families and individuals sometimes need access to small loans, but they need an option that helps them and doesn’t try to hide what it is,” Pearson said. “There’s only one commonly understood term for this type of loan, and they’re called payday loans.”

The council decided on summary wording that included the term “payday loans” and made it clear that the petition would only affect those loans.

___

Anna Liz Nichols is a member of the Associated Press/Report for America Statehouse News Initiative. Report for America is a nonprofit national service program that places journalists in local newsrooms to report on underreported issues.

Copyright 2021 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.



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93% of payday loan borrowers regret taking their loan, survey finds https://4xcircle.com/93-of-payday-loan-borrowers-regret-taking-their-loan-survey-finds/ Mon, 06 Dec 2021 08:00:00 +0000 https://4xcircle.com/93-of-payday-loan-borrowers-regret-taking-their-loan-survey-finds/ Payday loans can be a debt trap for borrowers who cannot afford to make payments. Here’s how you can pay off your payday loan balance before it’s sent to debt collectors. (iStock) Payday lenders prey on borrowers with bad credit who desperately need money, trapping them in a cycle of high-interest, hard-to-pay debt. The vast […]]]>


Payday loans can be a debt trap for borrowers who cannot afford to make payments. Here’s how you can pay off your payday loan balance before it’s sent to debt collectors. (iStock)

Payday lenders prey on borrowers with bad credit who desperately need money, trapping them in a cycle of high-interest, hard-to-pay debt.

The vast majority (93%) of borrowers regret taking out their personal loan, according to a new survey from DebtHammer. Only 1% of respondents said their financial situation improved after taking out a payday loan, while 84% said it got worse.

Payday loans allow consumers to borrow small, short-term cash loans without a credit check. But the typical repayment term is just two weeks, leading 4 out of 5 borrowers to take out a new personal loan to pay off their current debt, the Consumer Financial Protection Bureau (CFPB) reported.

It is possible to get out of payday loan debt without renewing your loan and incurring additional fees. Keep reading to learn how to break the cycle of payday borrowing, like consolidating debt with a personal loan. You can compare debt consolidation loan rates on Credible for free without impacting your credit score.

BEST SHORT-TERM LOANS: COMPARE YOUR OPTIONS

3 ways to get out of a personal loan

The average cost of a payday loan equates to an annual percentage rate (APR) of almost 400% – in other words, borrowers who keep renewing their payday loans could pay 4 times the amount they originally borrowed over the course of a year.

Payday lenders may trick you into thinking that renewing your loan is the only way to pay off your debt, but that’s not the case. Here are some alternative ways to break the cycle of payday loans:

  1. Debt consolidation loans
  2. Extended payment plans
  3. credit counseling

Learn about each repayment plan in the sections below.

3 THINGS YOU SHOULD NEVER DO WITH YOUR EMERGENCY FUND

1. Debt consolidation loans

Personal loans are lump-sum loans that are commonly used to consolidate higher interest rate debt, such as payday loans. They come with fixed interest rates and repayment terms, which means your monthly payments will be the same while you pay down your debt.

These debt consolidation loans are usually unsecured, meaning you don’t have to provide any assets as collateral. Because they are unsecured, lenders determine your interest rate and eligibility based on your credit score and debt-to-equity ratio.

Well-qualified borrowers can benefit from a low rate on a personal loan for debt consolidation. Personal loan rates are near all-time lows, according to the Federal Reserve, with an average of 9.39% in the third quarter of 2021.

Some credit unions also offer small Alternative Payday Loans (PALs), which allow members to borrow up to $2,000 with an interest rate capped at 28%. However, these loans can be difficult to find because only a small portion of credit unions offer PALs.

You can see if you qualify for a debt consolidation loan on Credible with an indirect credit check, which won’t affect your credit score. Use a personal loan calculator to estimate your monthly payments to see if this option can help you get out of payday loan debt.

CREDIT CARD INTEREST RATES ARE RISING NEARLY ALL TIME, FED DATA SHOWS

2. Extended Payment Plans

An Extended Payment Plan (EPP) allows payday loan borrowers to pay off their debt over a longer period than the typical two-week repayment term. Many states require payday lenders to offer PPE, so you’ll need to research your state laws to see if you qualify.

Some payday lenders may offer EPRs whether or not they are required by law to do so. The lenders belonging to the Community Financial Services Association of America (CFSA) are required to offer EPPs to borrowers, but other financial institutions may not offer this option.

HOW LONG DO NEGATIVE ITEMS STAY ON YOUR CREDIT REPORT?

3. Credit counseling

Non-profit credit counseling agencies offer free or low-cost services to borrowers who are struggling to manage their debt. One such service includes enrolling payday loan borrowers in a debt management plan (DMP).

As part of a DMP, a credit counselor will help you create a debt repayment budget and schedule. Credit counselors may be able to help you negotiate with payday lenders to lock in a lower interest rate or reduce the loan amount.

You can see a complete list of certified non-profit credit counselors on the justice department website. If you still have questions about payday loan debt relief, learn more about debt consolidation by contacting a knowledgeable loan officer on Credible.

BORROWERS WHO CONSOLIDATE CREDIT CARD DEBT CAN SAVE $2,000+ ON AVERAGE, DATA SHOWS

Do you have a financial question, but you don’t know who to contact? Email the Credible Money Expert at moneyexpert@credible.com and your question might be answered by Credible in our Money Expert column.



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State law causing payday loan stores to close https://4xcircle.com/state-law-causing-payday-loan-stores-to-close/ Thu, 04 Nov 2021 07:00:00 +0000 https://4xcircle.com/state-law-causing-payday-loan-stores-to-close/ “Out of business.” This sign is nothing new in the last 18 months. Thanks to the coronavirus pandemic, sales for many merchants have dried up, doors have been closed and employees have been laid off. But across Illinois, a state law passed earlier this year closed hundreds of certain types of stores, including at least […]]]>


“Out of business.” This sign is nothing new in the last 18 months.

Thanks to the coronavirus pandemic, sales for many merchants have dried up, doors have been closed and employees have been laid off.

But across Illinois, a state law passed earlier this year closed hundreds of certain types of stores, including at least one in Evanston. And that’s exactly what many lawmakers and consumer advocates wanted to happen.

The companies in question offered payday loans and other high-interest short-term loans that critics say kept borrowers trapped in an endless cycle of debt. They can’t pay it all back, these reviewers say, so customers end up borrowing even more.

The term “personal loan” refers to the usual length of the loan, about two weeks, the time between paydays for many borrowers. Payday loans require full repayment on the due date, plus borrowing costs. There are also short-term loans where a borrower’s car title is held as collateral and short-term installment loans, which allow repayment over a longer period than payday loans.

Amounts borrowed are typically a few hundred to a few thousand dollars, from customers who often have subprime credit ratings, making it unlikely that a bank will transact with them.

Kesha Warren, from the southern suburbs of Holland, says she borrowed $1,250 on a car title loan to help keep her business afloat, but ended up owing not only the principal, but also $4,200. $ in interest and fees, according to a video produced by the Chicago Community Trust, an organization promoting interest caps on such loans.

Charla Rios, a researcher with a national group, the Center for Responsible Lending, says payday loans and similar instruments “cause far more harm than good.”

Before Illinois passed its predatory lending prevention law, payday loans and other short-term loans could reach an annual percentage rate of 404%. The new law caps those rates at 36% APR, consistent with similar legislation in 17 other states and the District of Columbia.

Even 36% is more than double what someone with bad credit would pay for a car loan, according to US News & World Report, although car loans are generally for much higher amounts borrowed with longer repayment periods. long.

In addition to impacting payday loans and auto title loans, Illinois’ interest cap law also affects installment loans from online lenders.

National organization representing online lenders says consumers are actually being harmed by Illinois law, with fewer borrowing options available to those who may not qualify for money from a bank , savings and loan or credit union.

Andrew Duke, executive director of the Alliance of Online Lenders, calls the law “a solution in search of a problem”.

A federal consumer agency, he says, saw just 1% of complaints from the public in 2020 about personal loans.

“These data,” says Duke, “indicate that customers generally don’t have problems with small loan products.”

“Rate caps,” Duke adds, “do not reduce the cost of credit, but rather access to credit.”

Lenders also say that the emphasis on the annual rate can be misleading because while 300-400% is the annual rate and may seem extremely high, the actual amount repaid for a small loan is relatively low if the loan is repaid at time. For example, before the new Illinois law took effect, the fee to borrow $100 was $15.50 for a two-week loan.

But supporters of the law say borrowers often cannot meet the due date, the loan is rolled over and the customer is buried in ever-increasing debt. Or, the customer repays the loan on time, to borrow again a few weeks later.

Brent Adams of the Illinois-based Woodstock Institute, a liberal policy study group, says borrowers initially feel they will be able to repay, say, $500 on time.

But, he says, “research shows that a pitfall is more common than not” because the borrower cannot meet the due date and must extend the loan, “buying more time with new added fees. The average payday loan borrower,” says Adams, “renewes the loan often”

Duke of the Online Lenders Group says short-term, low-dollar loans can be a much better alternative to missing bill payments, piling up credit card debt, or even filing for bankruptcy.

When lending volume declines, Duke says, “other harmful options rise.”

He says the interest cap in Illinois will force many online lenders out of business here because it would be impossible to make a profit.

“I suspect there’s been quite a significant pushback,” he says.

But critics say high interest on such loans can cause the exact same problems, like missing other payments or ultimately heading to bankruptcy court.

One of the driving forces behind the Illinois law was the Legislative Black Caucus.

Adams of the Woodstock Institute says payday loan stores are typically located in low-income minority neighborhoods.

According to the State of Illinois, more than half of short-term, high-interest borrowers earned less than $30,000 a year, during 2012-2019. The value of transactions during this period was nearly $7 billion.

“These products,” says Adams, “almost with surgical precision target black and brown communities.”

Although Evanston has a large population of all races, it is primarily an affluent community with less appeal to brick-and-mortar payday loan stores, even before the new Illinois law. .

AmeriCash Loans, at 1801 Dempster St. closed a few months before the new state law took effect. (Google Maps image from November 2018.)

In fact, nine years ago, Evanston City Council limited the location of payday loan stores to a handful of commercial areas. The three such stores at the time did not have to relocate, but any new stores would have been limited to the few locations.

There are several financial education programs available in Evanston, for consumers hoping to learn how to better manage money, or perhaps lack thereof.

The City plans to renew a program with First Northern Credit Union, which has been suspended due to the coronavirus pandemic. The local YWCA, as well as Wintrust and Byline banks also offer similar offers.

The Interest Cap Act has had a significant impact on the short-term lending industry in Illinois. A state study found there were 1,578 licensees offering short-term loans of various types and terms at the end of 2019.

According to Adams of the Woodstock Group, 75% of them had closed by last July.

And Evanston, it seems, may not have any more. A search using Google Maps shows that most of what were once listed as payday loan stores are gone.

And what may have been the last, at 1828 Dempster, is also empty. An employee of the nearby check-cashing business told Evanston Now that the payday loan shop closed four to six months ago, shortly after the rate cap came into effect. Illinois interest.



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Afterpay-Westpac ‘Retro’ painted with payday loan brush https://4xcircle.com/afterpay-westpac-retro-painted-with-payday-loan-brush/ Wed, 22 Sep 2021 07:00:00 +0000 https://4xcircle.com/afterpay-westpac-retro-painted-with-payday-loan-brush/ Afterpay’s new ‘Retro’ feature retroactively splits a payment into four instalments, which critics say is no better than a payday loan or payday advance. Announced on Wednesday and slated to launch next month, Afterpay’s collaboration with Westpac retroactively splits a payment into four installments, based on a transaction in the past 72 hours. The Retro […]]]>


Afterpay’s new ‘Retro’ feature retroactively splits a payment into four instalments, which critics say is no better than a payday loan or payday advance.

Announced on Wednesday and slated to launch next month, Afterpay’s collaboration with Westpac retroactively splits a payment into four installments, based on a transaction in the past 72 hours.

The Retro feature effectively means that up to $200 is credited to customer accounts.

Users must be a “Money by Afterpay” customer, and while there is no additional charge to use the product, the usual Afterpay late fees apply.

Afterpay Vice President Lee Hatton said the new feature gives consumers an alternative to high-interest payday advance or “pay-as-you-go” apps.

However, Gerard Brody, CEO of Consumer Action Law Center, told Savings.com.au the new feature is “just another credit deal”.

“This … underscores why we need national credit laws to apply to buy now and pay later, including responsible lending laws,” Brody said.

The collaboration with Westpac on the new Money by Afterpay application – where the “Retro” function is located – effectively marks the major bank’s transaction account.

Payments expert Bradford Kelly told Savings.com.au he was surprised Westpac was collaborating on such a move.

“Where’s the regulator? Asleep at the wheel. If that doesn’t get regulators’ attention, nothing will,” Mr Kelly said.

“I am shocked that any bank, let alone Westpac, would allow itself to be associated with such a blatant product.

“Customers who need $200 – and let’s face it, it’s not about budget – are at the end of the road when it comes to credit.

“Why go for the bottom of the barrel, when the gutter is right over there?”

An Afterpay spokesperson told Savings.com.au that Retro’s intended use is for budgeting, not lending.

“The retro is part of a customer’s overall Afterpay BNPL limit, not something more,” they said.

“Most importantly, Retro is available for purchases that customers have already made with their Money by Afterpay debit card.

“Like Afterpay, Retro is tied to purchases and is not a cash loan.

“Retro costs nothing to Money by Afterpay customers, provided they pay on time.”

Why does this happen?

Following a less-than-stellar earnings report and a mixed reaction to Square’s takeover, experts say Afterpay’s move is to acquire customers quickly.

Toby Blyth, a partner at law firm Colin Biggers & Paisley, told Savings.com.au the alliance between Afterpay and Westpac was for marketing purposes and ease of scale.

“This is a marketing alliance with Westpac to bring a new product to Westpac’s own customer base and to scale Afterpay, given market concerns about Afterpay’s earnings and viability in the larger market basin. internationally,” Mr Blyth said.

However, Mr Blyth also questioned the direct monetary benefit for Afterpay.

“It cannot charge the merchant, who has already paid merchant fees on the original debit card transaction that is actually being refinanced,” he said.

“Westpac may be paying what is effectively an introducer fee to Afterpay, and recovering the costs via late fees.

“Banks have extensive experience with the call effect of ’55 days interest free’ and the like.”

Former Citi and Diners Club executive Grant Halverson also explained the reasons for the decision.

“BNPL clearly lends or else why does Afterpay have bad debts or collection charges of $200 million – the largest expense at 24% of revenue and more than 1% of sales?” Mr Halverson told Savings.com.au.

“Aftermarket BNPL has been around for years and is not new – it is very popular in Asia, Latin America and Africa.”

Mr. Kelly was candid in his assessment of the Retro movement.

“They have exhausted their customer growth in Australia and now need to go even deeper into the risky and dashing end of the credit market,” he said.

Global context

Just last week UK BNPL provider Curve launched “Flex” – a similar premise to Retro – which retroactively applies BNPL payouts to transactions.

However, Curve goes a step further and allows customers to “convert” transactions made up to a year ago into “free” or “low interest” loans, according to its CEO Shachar Bialick.

“Curve Flex is almost certainly the most flexible credit solution on the market,” Bialick said.

“Being able to go back in time and pay later will forever change the way UK customers think about managing their personal finances and cash flow.”

Since September 2020, Flex beta customers have converted around 7,000 transactions into what Curve openly calls “installment loans”, worth £1 million ($1.89 million AUD).

See also: Would credit regulation kill BNPL?

Is a credit crackdown coming?

BNPL is currently not subject to the National Consumer Credit Protection Act of 2009 (NCCP) as the NCCP does not apply to short-term credit of less than 62 days.

A Senate investigation in September 2020 also concluded that BNPL providers could self-regulate.

However, that could all change next month as regulators overhaul the credit framework, according to Halverson.

“ASIC has a new design and distribution obligation [DDO] powers in October – will they use them, who knows?” he said.

“They certainly should because it’s not just the BNPL – there is now a proliferation of ‘copycats’ taking this loophole to extremes.

“The net result is that more young consumers have financial problems.”

DDO powers give ASIC – the Australian Securities and Investments Commission – the power to enforce new agreements, including stop orders and exemption powers.

The new powers could extend to any financial product requiring a product declaration, as well as credit products covered by the NCCP and short-term contracts not covered by the NCCP.


Photo by Dan Gold on Unsplash



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Hotel and restaurant staff top list of payday loan applications during lockdown https://4xcircle.com/hotel-and-restaurant-staff-top-list-of-payday-loan-applications-during-lockdown/ Wed, 08 Sep 2021 07:00:00 +0000 https://4xcircle.com/hotel-and-restaurant-staff-top-list-of-payday-loan-applications-during-lockdown/ Hotel and restaurant staff top the list of payday loan applicants during the pandemic, new industry data has revealed. Analysis of customer trends Petits-prêts.com found that staff in the hospitality and leisure industry made the most requests for short-term loans this year, with employees in this sector borrowing an average of £1,532. The stringent restrictions […]]]>


Hotel and restaurant staff top the list of payday loan applicants during the pandemic, new industry data has revealed.

Analysis of customer trends Petits-prêts.com found that staff in the hospitality and leisure industry made the most requests for short-term loans this year, with employees in this sector borrowing an average of £1,532.

The stringent restrictions imposed on the hospitality industry during the lockdown have meant that many hotel workers, wait staff and general hospitality roles have been heavily affected due to site closures. People working in the construction and manufacturing industries have also been hit by the restrictions, with workers in this sector having the second highest number of payday loan applications.

Surprisingly, NHS staff and healthcare workers came third on the list of industries that saw staff apply for payday loans.

Greater London, West Midlands and Lancashire topped the list of regional requests, with the highest number of short-term loan requests coming from these regions.

The data was released by FCA-regulated credit broker Little-Loans.com, a loan comparison website that allows users to compare small loans from over 40 lenders to get the most APR. possible low.

Commenting on the data, a spokesperson for Little-Loans.com said: “It is interesting to see that the occupations that have applied the most for payday loans this year are staff in sectors that have been heavily affected by Covid-19 restrictions and lockdowns. It is therefore understandable that personnel in these industries need additional financial support.

Financial aid available in Scotland

They added: “The average loan amount for customers this year has been £1,531. Short-term loans allow customers with poor credit to access small amounts of money quickly, for things like household emergencies, such as boiler repairs or car breakdowns. They should not be used for unnecessary expenses, such as vacation purchases.

The customer data trends were based on payday loan applications for the period April 2021 to June 2021, which had a sample of 197,000 customer applications.

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Where can I get a payday loan? https://4xcircle.com/where-can-i-get-a-payday-loan/ Fri, 03 Sep 2021 07:00:00 +0000 https://4xcircle.com/where-can-i-get-a-payday-loan/ Image source: Getty Images Before visiting your local payday lender, consider the alternatives. If you’re looking for a small loan, you might be tempted to use a payday lender. After all, they make it look so simple: walk in, provide some basic information, and walk away with the money you need. Payday loan companies never […]]]>


Image source: Getty Images

Before visiting your local payday lender, consider the alternatives.

If you’re looking for a small loan, you might be tempted to use a payday lender. After all, they make it look so simple: walk in, provide some basic information, and walk away with the money you need. Payday loan companies never check your credit score or contact credit bureaus (unless you don’t repay the loan as agreed).

And if you live in one of the 37 states where payday loans are legal, you’ll have no trouble finding a physical payday loan office. If you prefer not to leave your home, you can even take out a personal loan online.

Before we do, let’s talk about it.

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How payday loans work

Let’s say you want to borrow $300 from a nearby payday lender. They ask to see your ID and proof of income (like a pay stub). There is no credit check. They hand you a contract with about a million words written in fine print.

Their advertised interest rate doesn’t seem that bad. Although the contract they slip across the counter spells out the actual cost of the loan, it’s easy to miss. Pay close attention to the APR, even if you’re in a rush. APR is what you actually pay to borrow money. It includes the advertised interest rate, but also includes a myriad of fees on top of what you owe.

According to the Consumer Financial Protection Bureau (CFPB), the fees added to a payday loan can be difficult to repay. Typically, payday lenders charge a percentage on every $100 borrowed – $15 per $100 is common. So if you borrow $300, immediately add $45 to the amount you owe — before taking into account interests. There are set-up fees, potential late fees, and possibly fees if the lender loads your funds onto a prepaid debit card.

The average “real” rate for borrowing from a payday lender is around 400%. Those hardest hit are those living in states without payday loan protection. CNBC recently revealed which states allow payday lenders to charge the highest APRs:

  • Texas 664%
  • 652%
  • Nevada 652%
  • Utah 652%
  • Missouri 527%
  • North Dakota 526%
  • Mississippi 521%
  • Wisconsin 516%
  • Louisiana 478%
  • Kentucky 469%
  • California 460%
  • Tennessee 460%
  • 456%
  • Alaskan 435%

After you sign the loan documents, the payday lender asks you to write a check for the total amount owed, including interest and fees. They ask you to postdate the check two weeks. Once those two weeks are up, they deposit the check and the funds are debited from your bank account. If you don’t have the money to cover the loan, you must tell them before they deposit the check to avoid overdraft charges.

bearing

You may not be surprised that most borrowers are unable to repay their loans in two weeks. After all, they still have rent, food, and other bills to pay. And now they have a loan with exorbitant interest and all sorts of fees.

What happens if you can’t repay your payday loan? The lender will be happy to offer you another loan to pay off the first one.

Let’s say your loan balance of $300 has grown to over $400. You borrow $400 to pay off the first loan, and the lender charges you an additional $60 ($15 for every $100). They are also likely to charge a “rollover fee” of around $45. So, two weeks after borrowing $300, you have a debt of $505 (before interest) — all because you had to take out a second payday loan.

Payday loans are extremely easy to get, but payday loan debt is hard to get out of under it. Because of the way these predatory lenders operate, even small payday loans can be expensive.

With approximately 23,000 payday lenders spread across the 37 states where they operate, you won’t have any trouble getting a payday loan if that’s really what you want to do.

Before writing that post-dated check, consider the alternatives:

Help with bills

There is no shame in running out of funds. Millions of Americans are in the same boat, doing whatever they can to get by. If you’re considering a payday loan because a utility has been cut, the fridge is empty, or you don’t have the money to buy your child’s back-to-school items, help is available. Before signing up with a predatory lender, contact an organization that wants to help you. USA.gov is a great place to start, with information on government assistance, including immediate help with getting food.

Another great resource is Need help paying bills. With an easy to navigate menu on their homepage, Need Help Paying Bills directs you to help with any financial issues you may have. They refer you to help paying utility bills, to food banks in your area, to free job training, and even to free dental clinics. There are few resources as comprehensive as Need Help Paying Bills.

Cash advance

We rarely recommend taking a credit card cash advance, but if you’re in a hurry, it’s better than a payday loan. Let’s say you live in Louisiana and your payday lender charges 478% APR for a short-term loan. Suddenly, paying 35% (or whatever your credit card company charges for a cash advance) sounds like a bargain. It’s not, but if you can plan to pay off the cash advance quickly, you’re in better shape than you would be with a payday loan.

One important thing to remember about cash advances: Interest begins to accrue as soon as you withdraw the money. Go with a plan on how you are going to pay it back in full.

Here are some other ideas for finding money when you need it:

Personal loan. Don’t count yourself if you have bad credit. There are good bad credit personal loans out there, and while some of our favorites charge up to 35.99% interest, that exceeds the interest charges on payday loans. With a personal loan, the interest rate is fixed, and it’s an installment loan, so you know precisely how much your payment will be each month.

Family and friends. It can be difficult to borrow from people you care about, but as long as you’re sure you can pay the money back quickly, it doesn’t hurt to ask.

Checkout. If you are a member of a credit union, you are considered a member-owner. Credit unions tend to be more flexible with their member-owners, especially if you’ve been with them for a while.

If you decide to take out a personal loan, chances are you will have no trouble finding one. There are nearly twice as many payday lenders in the United States as McDonald’s. Before you do, however, take a close look at some of the ideas we’ve mentioned. When it comes to small loans, almost every alternative is better than payday loans.

The Ascent’s Best Personal Loans for 2021

The Ascent team has scoured the market to bring you a shortlist of the best personal loan providers. Whether you’re looking to pay off debt faster by lowering your interest rate or need extra money to make a big purchase, these top picks can help you reach your financial goals. Click here for the full rundown of The Ascent’s top picks.



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Can’t repay a personal loan? What should you do? Here are your options https://4xcircle.com/cant-repay-a-personal-loan-what-should-you-do-here-are-your-options/ Fri, 27 Aug 2021 12:01:03 +0000 https://4xcircle.com/cant-repay-a-personal-loan-what-should-you-do-here-are-your-options/ Your options when you can’t make your payments What options do you have when you’re struggling to make your payments on a bad credit loan? First, you must admit that there is a problem for yourself. No doubt you’ll try to think of as many different ways to repay as possible, but sometimes it’s not […]]]>


Your options when you can’t make your payments

What options do you have when you’re struggling to make your payments on a bad credit loan? First, you must admit that there is a problem for yourself.

No doubt you’ll try to think of as many different ways to repay as possible, but sometimes it’s not possible no matter how hard you try.

Remember you are not alone. The daily mail reported recently that 28,000 people had contacted a charity to help them settle their payday loan debt.

Recognize your financial problem

When you recognize your financial problem, that’s the beginning of problem solving. Just like if you are at work and you don’t know how to do something. You don’t just sit there worrying – you ask for help.

It’s the same principle for borrowers when you’re stuck with payments and can’t repay your debt.

Lenders appreciate that a borrower who cannot repay a loan contacts them to tell them. If you recognize your financial problem and call the lender about it, they want to help you.

You don’t have to fight alone. When you recognize your financial situation, it’s good for you too. Talking with your friends and family about your problems means you don’t have to carry the burden alone.

Let your creditor know that you are in financial difficulty

The first thing to do is let your creditor know that you are in financial difficulty. The minute you realize you’ve gotten too involved and taken on too much is the minute you need to reach out to them.

If you have taken out financing and you do not let your creditor know that you are in financial difficulty, they cannot help you. But you may be surprised to learn that there are certain rules and guidelines they must follow.

These rules and guidelines are in place to help you when you are having difficulty with your payments and cannot repay your debt.

There are several ways to let your creditor know that you are having financial difficulty. The lenders we spoke to suggested the best way to contact them was by phone.

It’s much more personal than doing it via email, online contact form or post. You are there on the phone with a customer service employee who can contact you individually.

The customer service employee you speak to is part of a specially trained team. They work every day with customers who are struggling to pay.

What customer service workers are there to help you plan. You will tell them that you do not see how you will be able to make the next repayment of your loan. Their job is to listen to you and work out a plan with you to pay off your loan without causing you additional hardship.

How your lender can help you settle your debt

As mentioned earlier, there are several ways your lender can help you settle your debt.

There are three main ways you should expect to hear, which we’ll cover next.

Put a 30 day hold on your account

Many short-term credit providers will initially offer to suspend your account for 30 days.

If they suspend your account for 30 days, you get extra leeway as a borrower. If you took out a personal loan, that’s an extra 30 days to find the money you need.

What if you have contracted short-term financing to repay over 2 to 12 months? Then they can extend your repayment dates for another 30 days. This is how you have a chance to recover financially before resuming your repayments.

When a lender chooses to put a 30 days hold on your account, they won’t call you to demand a refund.

Extend your repayments longer

For borrowers facing difficult situations, your lender may extend your repayments longer. If you have a loan until payday, this may mean paying off in two or three smaller installments. Customers with short-term loans may have their repayments extended longer.

Here is an example.

You may have borrowed £500 for over 6 months.

If your lender offers to extend your repayments, they may instead extend the loan to 9 months. Please note that if this is the case, they may charge more interest and default fees.

Freeze your interest

Every lender is different and if they give you more time to pay off your loan, many may freeze your interest.

When a lender makes the decision to freeze your interest, no additional fees will accrue. Your lender recognizes that you are in difficulty and does not want to add more. They recognize that you want to pay them back and they are happy to give you the opportunity to do so.

What if a borrower loses his job and there is no guarantee when he will be paid? Lenders allow you to make small payments until your finances are on track.

When talking to your customer support agent, explore all options and never be afraid to ask questions.

Understand your rights and responsibilities before contacting a lender

The Financial Conduct Authority regulates all loan companies in the UK. Every lender and broker needs a license before they can offer financing. If you know the rules they must follow, you can understand your rights before contacting them.

When you understand your rights, you are better prepared to deal with your customer support agent. This can help you try to achieve the best and most manageable result for you.

Responsibilities of the lender when approving a high cost loan

Due to FCA rules, lenders have specific responsibilities when approving personal finance. Every lender must follow these rules to maintain their license and operate legally.

The three main rules are that:

  • They can’t charge more than 0.8% interest per day (that’s £24 for every £100 you borrow)
  • Lenders should never charge more interest charges than the amount borrowed. So if you borrowed £500, you will never repay more than £500 in interest and fees on top of the £500 you borrowed.
  • A lender is not allowed to charge you a default charge of more than £15. You may have to pay a default fee if you miss a repayment date, for example.

The reason they are in place is to ensure that money is only loaned to people who can afford to repay it.

Responsibilities of lenders when you are having difficulty repaying

There is a different set of lender responsibilities when struggling with repayments.

If you can’t repay your loan, it’s a stressful time. When you’re fighting refunds, the rules are there to protect you.

The main rules you need to know are:

  • Your lender should refer you to independent and free debt advice and counseling services
  • They shouldn’t try to collect the debt while you figure out how to pay it off. You can figure out how to do it yourself or you can get help doing it
  • They must treat you fairly and give you a reasonable time to repay the loan
  • They should not make multiple attempts to contact you
  • They should view an offer to make small payments as a gesture of your goodwill. And these small payments should not complicate the payment of your normal bills

When you applied, you would have agreed that your reimbursements would come from your bank account through what is called a Continuing Payment Authority (CPA). If your lender unsuccessfully tries to accept payment using CPA twice, legally they are not allowed to try again.

You can cancel your CPA if you’re trying to protect the money left in your account. You will need to contact your bank to do this. It’s always best to contact your lender to let them know you’ve done this.

Please note that your debt to the lender will remain unpaid if you cancel the CPA.

Touchpoints when you find yourself in unmanageable debt

There are many advisers and professionals you can turn to. But choosing the best touchpoints depends on:

  • The type of debt you have
  • The amount of money you owe
  • Your personal situation.

If you are falling behind in your repayments, your lender will refer you to one of the debt counseling services.

Debt counseling staff will explain the many ways you can deal with debt that has become too much for you. They will even contact lenders and negotiate debt repayment on your behalf.

Their goal is to reduce the amount you pay each month to relieve some of the pressure.

Here are some counseling service websites you can contact for help:

If your debt is large and spread across many accounts, you might consider the following:

How to always track your loan repayments

There are steps you can take to help you keep up with your loan repayments. Sometimes that will be enough to keep you from falling behind on refunds. Despite your best efforts, you may still struggle sometimes after taking these steps.

Creating a monthly budget should be part of any plan on how to always keep up with your loan repayments. Log in to your online bank and check how much money you get paid each month and how you spend it.

You may want to consider switching to cheaper insurance and utility providers. Or downgrade your TV subscription.

Instead of buying coffee from Starbucks first thing in the morning, you could save £15-20 a week by brewing your own coffee.

Ideally, you should do this before taking out a loan. You may find that over time you can build up a savings fund to deal with emergencies.

If you still need to take out a loan, you need to be clear about how to always track your loan repayments. If you’re not sure you can repay a loan, you shouldn’t take one out because it will only add to your problems later.

Summary

Finding yourself unable to repay a loan is a stressful situation. No one likes being sued for money they can’t afford to pay back.

It is always best to face this situation head on. Be proactive and contact your lender as soon as you realize you’re going to have a problem.



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How to get out of payday loan debt now https://4xcircle.com/how-to-get-out-of-payday-loan-debt-now/ Tue, 08 Jun 2021 17:22:05 +0000 https://4xcircle.com/how-to-get-out-of-payday-loan-debt-now/ The key is to shop around and find a loan at the most affordable rate and with the most favorable terms possible. If you are able to get a personal loan, you can significantly reduce the interest rate and borrowing costs you pay compared to payday loans. More of your money will go towards paying […]]]>


The key is to shop around and find a loan at the most affordable rate and with the most favorable terms possible.

If you are able to get a personal loan, you can significantly reduce the interest rate and borrowing costs you pay compared to payday loans. More of your money will go towards paying off your main balance, so you can actually reduce your debts.

And personal loans come with fixed repayment schedules that usually give you several years to pay off your loan. This extended repayment period can make your monthly payments more affordable. This way, you won’t have to borrow more money when your paycheck doesn’t stretch far enough to pay for everything you need plus cover expenses.

You can also use other types of loans, such as home equity loans, to consolidate your debt, but these can take longer to qualify, come with higher closing costs, and put your house at risk as collateral.

Commit to no longer borrowing

Once you’ve borrowed with a payday loan, the high fees and short repayment time associated with your loan can sometimes make it difficult to stop borrowing. In fact, many people end up taking out one payday loan after another or even taking out multiple payday loans at the same time. This can quickly lead to financial disaster when a large portion of your salary is promised to lenders before you even receive it.

Unfortunately, the bottom line is that you can’t borrow to get out of debt, especially with high-interest loans like payday loans. We must break the cycle by no longer taking credit. However, this can be very difficult if your paycheck doesn’t stretch far enough due to payments you’re already obligated to make.

The best way to make sure you don’t borrow anymore is to make a detailed budget that you live on. Figure out what your income is each month and add up all your essential and discretionary expenses. You will need to ensure that your outgoings and outgoings do not exceed your income. If they do, you will have to keep borrowing forever and never be able to get out of payday loan debt.

If your income doesn’t cover your expenses, start looking for places to reduce your expenses. That might mean cutting coupons to reduce your food budget or finding a roommate to make rent more affordable. If you have a drastic shortage in the amount of cash available to cover expenses, you may really need to cut expenses to the bone – but it is necessary to do so at least in the short term so that you can get out of your debts.

If you really want to pay off your debt as soon as possible, making extra payments is essential. When you make additional payments, it will cost you less in total to pay off your debt, as well as reduce the time it takes to become debt free.

Paying extra on your loan will reduce the balance faster because all the extra money will go towards the principal. And the more you reduce your balance, the less interest you will pay since interest is charged on a lower amount.

You can make extra payments by living on a prudent budget that keeps expenses down. You can also seek additional cash to increase your payout. To find extra money to pay off your payday loans, consider:

  • Doing overtime
  • Work a side gig
  • Selling things you don’t need

Consider bankruptcy

Sometimes you might not be able to agree on a repayment plan that makes payday loans affordable for you, and you might not be able to get a new loan that makes paying off payday loans affordable.

If you find yourself unable to make payments while covering your essential monthly expenses, you may have no choice but to try to pay off your debt or file for bankruptcy.

Debt settlement involves making an agreement with creditors to repay less than the total owed and have the rest of your debt forgiven. Debt settlement lawyers or debt settlement companies can negotiate this type of agreement with payday lenders, but you will have to pay a fee.

You can also try to negotiate this type of agreement yourself by informing the payday lenders that you are unable to pay as promised. If you can offer a lump sum payment of a portion of your debt in exchange for canceling your debt balance, this approach often works best.

Just be aware that lenders generally won’t accept a settlement unless you’ve missed payments – and debt settlement hurts your credit score. You will also want to get your agreement in writing before you pay anything.

If debt settlement isn’t working and payments are unaffordable, bankruptcy may be your only answer. Bankruptcy will allow you to discharge eligible debts, including payday loan debts.

The process by which debts are discharged varies depending on whether you are filing Chapter 7 or Chapter 13. Chapter 7 requires you to assign certain assets to the bankruptcy estate so that creditors can be partially paid. Chapter 13 requires you to make payments on a three to five year payment plan before the remaining debt balance is forgiven.

Bankruptcy hurts your credit score, but it can get you out of a deep hole if you have a lot of payday loans and other debts that you can’t afford to pay. Once your debt has been discharged and is no longer collectible, you can begin to rebuild your credit. This can be done over time by living within your means and getting a secure credit card that you pay on time to develop a positive payment history.

How can you repay your payday loan?

Ultimately, there is no one right approach to getting payday loan debt paid off.

Entering into a repayment plan makes sense if your state requires lenders to authorize them or if your lenders are willing to work with you. Taking out a new loan at a lower rate to pay off payday loan debt can work if you are able to qualify or if you have a loved one who will allow you to borrow. It is possible to pay extra on your loans if you can work more or sell additional items to get more money.

But if none of these options work for you, debt settlement or bankruptcy may be the only way to finally free yourself from your payday loan debt.

Carefully consider each possible option, weigh the pros and cons, determine which solutions are viable, and then act. Start working on your approach today because you absolutely want to get your payday loans paid off ASAP before they cost you even more money.



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