REASON FOR PAY DAY POPULARITY
Here are the reasons:
- As a business model, it is proven to be resilient and profitable. Diverse portfolio, small exposure, short term nature of the loan and catering to a sector few traditional lenders touch.
- With Americans’ incomes not keeping pace with inflation, and increasing illegal immigration, there is growing need for Payday type loans as more and more people live from paycheck to paycheck.
- While there is State level regulation on Payday practices, this form of lending is highly unregulated and as yet unchecked in any real form by Federal government. And State supervision is spotty. So no wonder new Payday type lenders are cropping up all over.
- Because of small loans and not much oversight, entry barriers are low.
PROS AND CONS
- Easy terms, no collateral
- Negative credit history is not an obstacle
- Very local
- Caters to a segment of population which has no other alternatives to cover their expenditures or budgets
- Very high rates of interest (although many States have Usury laws, so Payday lenders skirt it by calling these “fees” or “service charges”
- Addictive. Since money is easily available, there is less incentive to save and forgo certain expenditures
- Does not improve borrower’s credit history–whereas getting credit from a traditional source, even a store, and paying it down regularly will actually improve your credit rating and open up other doors to borrowing
WAYS TO AVOID PAYDAY
- Get in the habit of budgeting your income and expenses and do it conservatively. This will help you manage your cash flow and enable you to predict it—that way you can find ways to either boost your income or reduce expenses. It also will help you to prioritize your expenses
- Diligently note down your expenses
- Try to put internal limits on when to use a credit card. I advised someone to not use a credit card for single-shop charges below $25. It is amazing how quickly she realized money was flowing through her hands. She never appreciated this when flashing credit cards, and making minimum payments.
- Pay off all or most of credit card balance each month. Credit card companies are only a slightly softer version of Payday lenders.
- I prefer loan from a friend or from family although I realize it is not always possible
- Treat Payday as the absolute last resort, before bankruptcy. That will help you strengthen your resolve to avoid them as long as possible
- Get Credit Counseling. Like someone who wants to lose weight must seek professional help, if you are unable to balance your checkbook, you need to see a professional financial advisor.
- See if you have an asset that can be monetized. It may be jewelry you do not use or a house bigger than you can afford. This is the absolute first step to repairing your financial health.
1. Applying and submitting pay day loan forms manually by visiting a financial institute or a bank
2. Applying and submitting pay day loan forms through the World Wide Web
3. Applying and submitting the pay day loan forms through telephonic services
These approaches make the application process time efficient. Also the application form for pay day loan has been designed and developed keeping in mind the urgency of the applicants and includes only the mandatory fields that may include:
a) Full name
b) The applicant’s current employment status
c) Recent telephone bill
d) Recent residential address
e) Recent pay-stub
f) A voided check
g) The applicant’s valid bank account
h) Complete bank statement
i) A copy of applicant’s social security card
j) A copy of applicant’s state issued ID etc.
k) Sold references of other people
The information obtained through these application forms is verified by the companies offering the cash loans. Any further information required by the companies is found out through their own network. However, the individuals have to be honest when filling out these forms or their loans will get rejected. Even those individuals who do not have a strong credit report can apply for pay day loans and easily manage their financial troubles.
Unlike traditional loans, pay day loans or cash loans do not require collateral but consider the employment proof of their applicants as collateral provided. Applicants who wish to apply for cash loans must make sure to borrow an amount that they can easily repay on time, otherwise they might head straight into a debt trap. The penalty fee for pay day loans is very high and can end up being many times the principal borrowed.
Therefore pay day loan borrowers are advised to carefully read the terms and conditions of their pay day loans company and get clarification about unknown terms and jargon. This will prevent any misunderstanding later on. Also, it is important to avoid the cash loans company that penalizes their borrowers for paying earlier than the agreed time. It is also important for borrowers to get information about the limit imposed by the state on the interest rate that these companies can apply to the quick cash loans. This will help borrowers in bargaining for the loans at better interest rates.
While pet expenditures in the U.S. are expected to reach $55 billion this year (according to the American Pet Products Association), and roughly 15 percent of pet owners are spending at least $100 per month on Fido or Fluffy, there are still plenty of pet friendly households out there that are struggling to afford pet food, vaccinations, and trips to the vet when necessary. No matter your taste in furry companions, managing your pet’s expenses can help you from falling short when it comes time to stock up on food or take a trip to the dogie doctor. Believe it or not, there are ways to save money and still provide your companion with the best care without compromise.
The first thing you should do is make sure you are not overfeeding your pet. Pet obesity is a huge problem in the U.S. Not only are pet owners contributing to their four-legged friends being overweight, they are wasting food and money by overfeeding. The cost of feeding a small dog or cat can run an owner anywhere from $120-$150 per year while feeding a large dog can set someone back $350 per year says Stephen Zawistowski of the ASPCA. It’s best to feed dry food and follow the guidelines recommend by the dog food manufacturer. This means measuring the correct amount and refraining from leaving food out all of the time.
Asking your pet’s doctor about discounts and generics can also save you a great deal of money and help you budget your pet’s expenses. Many vets and pet hospitals offers specials on vaccinations and teeth cleaning if you bring your pet in on a certain day of the month. If you do need to take a trip to the vet, try and book a morning appointment to avoid the possibility of leaving your pet overnight which can get costly from “boarding” fees. If you live near any one of the country’s 30 veterinary schools, you can save quite a bit by taking your pet there for treatment. When it comes to vaccinations, ask your vet what shots are absolutely necessary and which ones can be bypassed. The life cycle of an indoor cat may be different than that of an outdoor cat and may possibly require less vaccinations overall. It shouldn’t take bad credit payday loans to be able to afford to take your pet to get his or her shots in an effort to keep them healthy. If you find yourself in an emergency situation with your pet, a short-term loan can help with doctor bills and/or emergency medical treatment.
1. Borrow it from friends and relatives
Taking money from friends or relatives is the ideal scenario where you need not pay any interest on the borrowed amount. There is flexibility in repayment. You can take the liberty to delay it for a few days with their consent without paying any penalty for the same.
2. Take advance from your company
In case you have a provision to take your salary in advance in case of exigencies, avail that facility. An advance given by your company will still be a good idea as you might not be paying any interest on it. Check with your company for the terms of such a provision.
3. Take Loan from a bank
If your need of money is not so urgent and you can wait till the loan procedures of a bank gets over, taking a loan from banks could be a good idea. The advantage with banks is that their rate of interest is not so high and they give enough time to the borrower for repayment. Problem in taking a loan from the banks is its stringent policies. If in case someone has had a history of foreclosure, defaulter, CCJ, late payment, arrears, insolvency, skipped payment, missed payment or any such related issue, that person is not granted any loan from the banks.
4. Opt for Payday Loans Online Same Day
Those with a bad credit history need not fret. There are many lenders who are available online who provide with quick personal loans without checking their client’s credit history. Such lenders are many in number and they have many options available online for their borrowers. You just need to log in and start searching for lenders who offer payday loans online same day. These loans are also termed as quick personal loans that can be attained within few hours of applying. You will be required to shortlist a few lenders and based on their rates of interest, fees and repayment process, you will be able to select the one who is giving you the best rates. Although the rate of interest of such lenders is higher than that of the banks, but a big advantage with such lenders is their quick service and have no credit check policy. For those who need money instantly, this is the ideal money lending system. All you have to do is fill up an application form and fulfill a few basic criteria which make you eligible for the loan. These criteria are:
- You should be 18 years or more while applying for a payday loan online same day
- You should have a stable job
- You should have an active bank account (you will be required to generate three months of bank statement)
- You should be a citizen of United States
Luckily, if you feel your payday loan is not yielding the kind of results you expected because of one issue of another, it is possible to apply for a refund. The refunds are usually based on mis-selling by the lender or the payday loan providers and they can work on saving you from an agonizing financial situation. You can claim a refund if:
- You feel the payday loan costs are ever increasing and sending you into more debt, thus making living a struggle for you. If you can hardly maintain your household bills and daily expenses because of repayments then you can claim for refund.
- Repayments are automatically deducted from your credit card or bank account by your lender leaving you with insufficient funds to survive on.
- You qualified for the payday loan even though you were suffering ill health or while you were on low incomes and benefits. All lenders are required to go through an evaluation process wisely to ensure that you can actually repay the loan as indicated.
- The payday loan proved unaffordable and you really cannot repay without being subjected to undue difficulties. Whereas the loans come with high interests, some lenders charge hefty rates and attach other fees to the loans making them quite unaffordable in some circumstances.
- The lender encouraged you rolling over the loan, thus resulting in more fees on your side. The lending terms should be clear for you and no lender should offer solutions just so they can reap you off in the end when you thought they were actually helping you out.
- You have to borrow more funds to pay important bills like utility bills, rent and council tax just because you are servicing a payday loan.
Making the complaint
First, you would need to write a letter to the lender as a way of trying to sort out the issues at hand. Let the lender know where they have failed as per best practice charter and the set rules for such loans and express how you wish to resolve the problem. You can review repayments plans so you are able to pay what you can afford at convenient times.
If the lender fails to respond or sort out the problem as requested, you can take the complaint further to the financial ombudsman service. The office will look into the complaint and offer advice to sort it out and final decisions made binds the lender.
In case you still are not satisfied with the decision by the ombudsman service, you can take lender to court. It however should be your very last resort when making a claim because court cases can be long and tedious and they also come with charges. It helps to seek professional advice first before making it a court case.