pay day loan
A
payday loan
(also called a
paycheck advance
or
payday advance
) is a small, short-term loan that is intended to cover a borrower's expenses until his or her next payday. The loans are also sometimes referred to as
cash advances
, though that term can also refer to cash provided against a prearranged line of credit such as a credit card (see cash advance). Legislation regarding payday loans varies widely between different countries and, within the USA, between different states.
Some jurisdictions impose strict usury limits, limiting the nominal annual percentage rate (APR) that any lender, including payday lenders, can charge; some outlaw payday lending entirely; and some have very few restrictions on payday lenders. Due to the extremely short-term nature of payday loans, the difference between APR and effective annual rate (EAR) can be substantial, because EAR takes compounding into account. For a $15 charge on a $100 2-week payday loan, the APR is 26 × 15% = 390% but the EAR is 1.15
26
- 1 × 100% = 3686%. Careful reporting of whether EAR or APR is quoted is necessary to make meaningful comparisons.
revcwhitlock
asked:
"I keep getting e-mails from numerous companies about pay day loan offers, and since the holidays have cost me more than I expected I am interested in such offers. But I only want to pay over a course of at least six months.Has anyone heard of such a place, and if so could I please have the e-mail address?Than you."
Question posted courtesy of:
pinkshady25 replied:
"Well In lewiston ID there is a place called Continental loans and they do that our pmt is only $58. a month for 4 months. Maybe they have one close to you."
TaxGurl replied:
"I haven't. The concept of a payday loan is that it functions as an advance against your next paycheck......which should be received in a week or two. Most of them will let you keep rolling the old payday loan into a new one but they charge new fees each time which really add up.Be really careful with the interest rates and fees if you decide to go this route. This is one of the rare times when using a credit card and paying over time would be cheaper.If you are looking for a loan over time, your best bet would be your bank or credit union. Or even picking up some additional part time work for a few months to get the bills taken care of."
Steve replied:
"Any payday loan place will allow you to extend your loan. The interest rates on payday loans start around 200% and actually get lower as you continue to extend the loan. I'm sure there are loan sharks out there that charge less interest.Pay day loans are NEVER a good idea."
Sue F replied:
"I don't know if you listen to any of the financial advisers, such as Susie Orman; and many others who are on satellite radio.Payday loans are one of the worst financial situations you can get involved in. An adviser on The Motley Fool financial site suggested getting involved with a loan shark makes about as much sense.The rules and regulations of a payday loan means that you are promising to pay the loan back when you get your next paycheck, if you extend the loan the rates of payback will exceed two hundred percent.If you are that financially strapped, you need to be getting a small loan through a family member, which is only going to work if you fill out a written agreement for payback and follow through with it, or a small personal bank loan.The bank loan is the most sensible, as you will be building positive credit on your credit record by paying it back in a timely fashion.My family and friends and I have changed our holiday celebrations over the last few years and eliminated gifts for the adults, and the children get one gift from each person involved in our holiday celebrations. And it is one small gift, with a ten dollar limit. We have the joy of spending time with our friends and family without the burden of all the shopping and wrapping and overspending.... My family and I do not use charge cards either, so we don't spend what we don't have.It is so wonderful to head into the New Year without the burden of extra bills over out heads.Good luck and have a good day."
dk9113
asked:
"I am buried in pay day loans and don;t know how to get out from under them and my credit is pretty poor, anyone have suggestions as what to do? or where to turn?"
Question posted courtesy of:
thale138 replied:
"just dont pay off the payday loans, no one but an idiot would set foot in those places, except to work there, and even then its not a good thing."
parsonsel replied:
"try a loan consolodation and credit counseling service in your area. Look in the phone book. You might be able to find one that's non-profit that won't charge you as much."
Disillusioned replied:
"Suck it up and pay them off. You'll have to do without some luxuries for a little while but the only way to get around them is to pay them and not go back for another."
ahammondtx@sbcglobal.net replied:
"If you dont qualify for a conventional loan then you are stuck paying off the pay day loans until you're done. Why did you get more than one? I admit to using them from time to time when things get tough or I need money right away, but never more than one because the fee's are high. You have to pay them because they deduct it from your account, so I suggest a second job, anything to make quick money to pay them off."
TMH replied:
"Your best bet would be to stop borrowing money. If you can't afford to purchase things, then don't borrow. Especially from Payday Loan type places - they are basically legalized loan sharking. Since you are already in deep, I would suggest going to a credit counseling company. They can set you up on repayment plans with lower interest rates."
OMAYRA M replied:
"Go to a bank you like, and ask for a loan to pay them off Pay day loans have high interests . There is always a bank who has loan officer or mortgage broker who are willing to help you. They work for comission. A mortage Broker can look in the internet and get the best program loan for you. Get a loan and pay all your debts off. And you could be making just one payment intead of multiples payments. Good luck to you."
•♥•Grogan•♥• •♥•Girl•♥•
asked:
"I messed up. Can't repay a pay day loan.What's the worst that will happen?"
Question posted courtesy of:
Anjell replied:
"Sorry you're having trouble. What you need to do is get in touch with the company ASAP. Hopefully you haven't defaulted already because this gets reported to the credit bureau and your score starts diving. Contact the payment or collections department and make arrangements to pay in increments...don't avoid them..it will only make matters worse"
bob shark replied:
"They encourage you to come in and roll over your loan...that is , take out another to cover the first and it's interest, by getting a new loan with it's attached fees and interest."
gonzo replied:
"Contact them and work out the loan. or get money from a friend to pay the loan ASAP."
dap replied:
"i had the same problem once, pay day loan places CANNOT report to the credit bureus because it is bad what they are doing to people anyways. So they just write it off as bad debt. I would stop payment on the check and tell them, you just can pay it...they may make payment arrangements with you.."
heather_michelle41607
asked:
"About a year ago i made a stupid mistake of getting online pay day loans. They ended up taking hundreds out of my bank account with me knowing. Anyways they say I owe them and I refuse to talk to them at work. I even told them not to call me at work (i was told they had to stop if you did that) Anyways this morning i was answering the phones at my work and they asked for me (i knew it was them because they are foreign and used my maiden name) i told them i was not available and then they asked to speak to my boss! I must have stupidly put her name down on something. Anyways i put them in my voice mail. Does any one have any idea why they want to talk to my boss? What could that possibly do for them? How can i get them to stop bothering me at work?"
Question posted courtesy of:
Ask M replied:
"hopefully nothing, it is illegal to call you at workPut it in writing"
I_Love_McRedneck replied:
"Take their call the next time and tell them if they ever call you at work again, you're taking them to court."
Johnny Dope replied:
"You should have filled out a confidentiality agreement, but they probobly want to ask your boss whether or not you really work for them. They're not trying to collect from the boss, they're trying to talk to you, and they figure your boss can reach you. Maybe you should call them saying that because they kept calling you at work you lost your job, and that they can no longer reach you at that number or they will press charges. Tell them that you have a new work number at a different office with a different company, and that they can reach you wherever. Have a talk with your boss to reject any calls they receive at the office. Basically make it clear to them that you are not working there anymore, and get them to change your contact information. Make sure you say if they bother that company again they will press charges for soliciting over the phone."
sammy replied:
"They will probably want to garnish your wages to get their money back."
Feeling Mutual replied:
"It is illegal for them to tkae money out of your bank account without you known. You should call the police.These are criminals."
SCH replied:
"You need to put it in writing that they cannot contact you at work, otherwise they will continue trying to call you there...just telling them over the phone is not a legal way to get them to quit calling there.Fair Debt Collection Act states they can contact anyone whom they wish to get information about you to attempt to collect the debt...so they are most likely trying to get new contact information on you. There isn't much you can do to get them not to contact her, other than making a payment arrangment with them so that they know you will pay them off. They can only tell them they are attempting to collect a debt from you and they need to contact you and so they are wanting her to give them your information. They must disclose what company they are with and why they want to speak to you...so that will let your boss know you have a bad debt. Your boss can also let them know they aren't allowed to call the office again, but again it would have to be in writing. Good Luck"
ed m replied:
"you was stupid to get involved to start with and now the only thing you can really do is pay them off == they can and will put a lean on your wages!!!"
GG87
asked:
"I am preparing to go back to school in the spring and will be applying for a school loan through a bank with a co-signer. I have a delinquent pay day loan that I haven't paid off yet and has been sent to a collections agency. I need to know if this in any way will hinder my chances of receiving my school loan."
Question posted courtesy of:
If you’re serving in the military, working to keep our country safe, and yet every month all your salary seems to be spoken for even before you get it, you may be struggling financially to make ends meet on a constant basis. Life just doesn’t seem fair, does it? But you should take heart; help is at hand in the form of pay day military loans.
Sometimes we have lots of expenses or payments to pay like our car loans, our credit cards or others because you need cash for some reasons. Now you really need to pay expenses like electricity bill or others with a specific date or deadline and you can only pay until your next pay day.
Pay day loans have become the need of the day. Fast growing needs have given birth to payday loan services that offer quick and easy loan. Payday loans have already become obvious cash solutions for most people.
It is a sad fact of life that military personnel do not get paid the best of wages. While we cheer them as they march in parades, and honor them on Memorial Day, we also do not give them the highest of pay. So, servicemen and women often need to get some sort of loan.
Learn how to get fast cash when it is most needed without taking out pay day loans.
