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A new way to prey on poor: car title loans

The rusting 1994 Oldsmobile sitting in a driveway just outside St. Louis was an unlikely cash machine. That was until the car’s owner, a 30-year-old hospital lab technician, saw a television commercial describing how to get cash from just such a car, in the form of a short-term loan.

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The lab technician, Caroline O’Connor, who needed about $1,000 to cover her rent and electricity bills, believed she had found a financial lifeline. “It was a relief,” she said. “I did not have to beg everyone for the money.”

Her loan carried an annual interest rate of 171 percent. More than two years and $992.78 in debt later, her car was repossessed.

“These companies put people in a hole that they can’t get out of,” O’Connor said.

The automobile is at the center of the biggest boom in subprime lending since the mortgage crisis. The market for loans to buy used cars is growing rapidly. And similar to how a red-hot mortgage market once coaxed millions of borrowers into recklessly tapping the equity in their homes, the new boom is also leading people to take out risky lines of credit known as title loans.

In these loans, which can last as long as two years or as little as a month, borrowers turn over the title of their cars in exchange for cash — typically a percentage of the cars’ estimated resale values.

“Turn your car title into holiday cash,” TitleMax, a large title lender, declared in a recent television commercial, showing a Christmas stocking overflowing with money.

More than 1.1 million households in the United States used auto title loans in 2013, according to a survey by the Federal Deposit Insurance Corporation.

For many borrowers, title loans are having ruinous financial consequences, causing owners to lose their vehicles and plunging them further into debt. A review by the New York Times of more than three dozen loan agreements found that after factoring in various fees, the effective interest rates ranged from nearly 80 percent to over 500 percent. While some loans come with terms of 30 days, many borrowers, unable to pay the full loan and interest payments, say that they are forced to renew the loans at the end of each month, incurring a new round of fees.

Many people find that they are struggling to keep up almost as soon as they drive off with the cash. As a result, roughly one in every six title-loan borrowers will have the car repossessed, according to an analysis of title loans by the Center for Responsible Lending, a nonprofit in Durham, N.C.

“This is nothing but government-authorized loan sharking,” said Scott A. Surovell, a Virginia lawmaker who has proposed bills that would further rein in title lenders.

The lenders argue that they are providing a source of credit for people who cannot obtain less-expensive loans from banks. The high interest rates, the lenders say, are necessary to offset the risk that borrowers will stop paying their bills.

• • •

The title lending industry thrives because of the car’s importance.

While people seeking title loans are often at their most desperate — dealing with a job loss, a divorce or a family illness — the lenders are willing to extend them loans because they know that most borrowers will pay their bill to keep their cars. Some lenders do not even bother to assess a borrower’s credit history.

“The threat of repossession turns the borrower into an annuity for the lenders,” said Diane Standaert, the director of state policy at the Center for Responsible Lending.

Unable to raise the thousands of dollars he needed to repair his car, Ken Chicosky, a 39-year-old Army veteran, felt desperate. He received a $4,000 loan from Cash America, a lender with a storefront in his Austin, Tex., neighborhood.

The loan, which came with an annual interest rate of 98 percent, helped him fix up the 2008 Audi that he relied on for work, but it has sunk his credit score. Chicosky, who is also attending college, uses some of his financial aid money to pay his title-loan bill.

Chicosky said he knew the loan was a bad decision when he received the first bill. It detailed how he would have to pay a total of $9,346 — a sum made up of principal, interest and other fees. “When you are in a situation like that, you don’t ask very many questions,” he said.

The title lenders are benefiting as state authorities restrict payday loans, effectively pushing payday lenders out of many states. While title loans share many of the same features — in some cases carrying rates that eclipse those on payday loans — they have so far escaped a similar crackdown.

In 21 states, car title lending is expressly permitted, with title lenders charging interest of up to 300 percent a year. In most other states, lenders can make loans with cars as collateral, but at lower interest rates.

Johanna Pimentel said she and both of her brothers had taken out multiple title loans.

“They are everywhere, like liquor stores,” she said.

Pimentel, 32, had moved her family out of Ferguson, Mo., to a higher-priced suburb of St. Louis that promised better schools. But after a divorce, she had trouble paying her rent.

Pimentel took out a $3,461 title loan using her 2002 Suburban as collateral. After falling behind, she woke up one morning last March to find that the car had been repossessed. Without it, she could not continue to run her day care business.

A new way to prey on poor: car title loans 01/05/15 [Last modified: Monday, January 5, 2015 4:07pm]
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Personal Loan: How You Can Make the Most of It

There are times in life when you need extra cash to meet an immediate goal. In such a case when you have considered all other options such as taking help from friends or relatives and have not found a way out, dipping into your savings pool may not be a good idea at all.

Under such circumstances, many of us consider taking a personal loan. However, despite telemarketers chasing you almost daily offering personal loan schemes, getting a personal loan isn’t child’s play.

Just like any other type of loan, here also your loan eligibility will depend upon your Cibil score. A personal loan – as the term suggests – can be taken to meet a number of personal financial goals. Personal financial goals can be anything from a medical procedure, home improvement, own wedding or a sibling’s to urgent purchases relating to a small business. Sometimes people also opt for personal loans to refinance or consolidate a debt demanding a higher rate of interest.

But have you ever really thought as to which situations can be best handled with a personal loan? Let’s consider some instances and analyse how one can use this powerful instrument effectively:

Refinancing or consolidating debt

It may theoretically seem easier to pay off credit card bills with a personal loan, but one should always remember that by doing so, you are only moving your debt pile from one place to another.

You should, therefore, consider taking a personal loan only if by doing so you would be lowering the annual rate of interest you are paying.

For instance, the rate of interest on a personal loan can vary from 13.99 per cent to 23 per cent depending upon the lender you pick and your Cibil score. This is considerably lower than an annualised rate of interest of 35 per cent in case of credit card if you have managed to get yourself in the minimum amount payment cycle and are not making repayments towards your principal amount.

You may also consider taking a personal loan if you have an outstanding amount on more than one credit card and wish to consolidate all payments. It is much easier to concentrate on one loan payment rather than managing several repayments causing sleepless nights.

Home improvement projects

You may think of taking a personal loan to make substantial changes to your home, but instead of taking a personal loan, you may consider taking a loan from a bank. Most lenders have a home improvement loan product or a renovation loan under which they finance 80-85 per cent of the total cost of renovation being undertaken. The lending rates for such loans up to an amount of Rs 30 lakh range between 10.5 to 11 per cent while loans above Rs 30 lakh are available at an interest rate ranging between 10.75 per cent and 11.50 per cent.

Medical expenses/business purchases

If you need money urgently for a medical procedure for yourself or someone in the family you are better off depending on your medical insurance. These days most hospitals offer cashless facility, so coughing up a lot of money on an immediate basis is no longer necessary.

You should, however, not neglect this aspect and take adequate medical insurance cover well in advance. As for a business purchase, it is a judgment call that you need to make, but do consider taking a business loan from a bank prior to opting for a personal loan. There are several loans available for SMEs today that may offer you better financing and repayment options.

Weddings and vacations

There is no doubt about the fact that a wedding or a vacation can be cause a huge financial burden. While it is true that you will pay a lesser amount of interest as compared to a credit card, it is better to save up for such expenses well in advance rather than pay for them with a personal loan which is an unsecured debt at the end of the day.

CONCLUSION

Personal loans are definitely a lucrative option and relatively easy to procure these days, but it only makes sense to take one in case of an unavoidable and immediate need for money. The other instance when you can consider taking such a loan is when there is an opportunity to save money on interest rates.

Otherwise, if it is that designer outfit, a diamond ring for your wife or a fancy trip with your family that you want desperately, it’s better to save up for it rather than pay interest on the purchase.

Disclaimer: All information in this article has been provided by Creditvidya.com and NDTV Profit is not responsible for the accuracy and completeness of the same.

[…]

Sound Advice In Terms Of Pay Day Loans | Healthy Life

Get instant $ 300 www.mycashnow.com Tulsa, OK low apr instant paid 10 electronically deposit. You can also apply urgent $ 1000 cashland payday loans Colorado Springs Colorado low interest .

Online payday loans provide those short of money the ways to cover essential expenses and emergency outlays in times of fiscal misery. They must basically be put into nonetheless, in case a client boasts a good deal of knowledge relating to their particular conditions. Make use of the recommendations in this article, and you will know whether you have a good deal before you, or in case you are about to belong to a dangerous trap.

If you are planning on taking out a payday loan, be sure that the company you employ is reliable. There are many organizations around which can be rip-off performers. You ought to prevent them at all costs. Unless you get good testimonials regarding the organization online, do not rely on them.

See the small print just before getting any lending options.

Ask just what the interest of the payday advance is going to be. This is significant, since this is the exact amount you will need to pay out along with the amount of money you are borrowing. You could possibly even desire to look around and get the best interest rate it is possible to. The less rate you discover, the less your full payment will likely be.

There are many different businesses that supply pay day loans. If you believe you should utilize this sort of services, investigate the firm prior to taking out your personal loan. Ensure that other customers have been pleased. Performing a basic on the internet search, and reading testimonials of the loan company.

Should you be in the process of securing a payday advance, be certain to browse the contract cautiously, seeking any secret costs or essential shell out-back again information. Do not sign the deal till you fully understand everything. Look for red flags, such as huge costs should you go every day or maybe more on the loan’s thanks time. You could find yourself having to pay way over the first amount borrowed.

Just before a cash advance, it is essential that you discover of your various kinds of available so that you know, that are the best for you. Particular pay day loans have diverse plans or needs than others, so appear on the Internet to figure out what one is right for you.

If you find on your own in the situation with a number of payday cash loans, do not try and consolidate them into a greater loan. If you cannot pay back smaller loans, you will not be able to pay the larger one particular. Search for ways to repay the loans at lower rates of interest, to get out from the cycle of payday advance debt.

Only obtain the money that you simply absolutely need. For example, in case you are having difficulties to pay off your bills, than the cash is clearly required. Nonetheless, you ought to never ever obtain dollars for splurging functions, like eating dinner out. The high interest rates you will need to pay in the foreseeable future, is definitely not well worth having dollars now.

Maintain your vision on the charge to obtain money using a payday advance. Though there is lots of push made available to the high cost of these loans, occasionally you actually just need the money. Online payday loans happen to be in small amounts, generally which range form $100 to $1,500. The interest and costs that you simply shell out, should you pay the bank loan inside of fourteen days, is generally from $15 to $30 for every single $100 you need to use. Job this volume into the finances for your next paycheck, if you fail to afford to pay for it, you can not pay for to take out a pay day loan.

Make certain you get a cash advance directly. A lot of people have the oversight of trying to get a payday loan using a dealer. These individuals usually do not recognize that payday loan brokers typically charge extortionate fees, and forget to reveal the complete terms of a payday loan to debtors.

Tend not to obtain a financial loan for virtually any over you can afford to repay in your next shell out period. This is a good strategy to help you pay your loan in full. You do not want to pay in installments since the attention is indeed substantial it forces you to need to pay much more than you borrowed.

Be sure to keep a near eye on your credit score. Try to verify it at the very least annual. There could be problems that, can seriously damage your credit rating. Experiencing less-than-perfect credit will badly impact your interest rates in your payday loan. The more effective your credit history, the lower your interest.

As was explained previous in the following paragraphs, pay day loans supply you with a method to get money easily. Prior to taking out a pay day loan, carefully overview anything you learned from reading this write-up. The tips, and advice that you have go through may help make certain you don’t make any payday advance mistakes.

[…]

Ghana Home Loans launches Quick Cash

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Business News of Saturday, 27 September 2014

Source: Daily Guide

Ghana Home Loans launches Quick Cash

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Ghana Home Loans (GHL), the nation’s leading provider of home finance, has unveiled a new product dubbed, ‘Quick Cash’ onto the market.

Quick Cash is aimed at assisting homeowners whether self-employed or salaried, resident or non-resident, to access funds within the shortest possible time.

Its introduction was motivated by GHL’s vision to unlock the full potential of residential property as the ultimate asset to the benefit of all home owners.

The minimum loan amount, which is GH?5,000 or its USD equivalent, is repayable within 24 months.

Speaking at the launch of Quick Cash, Principal Consultant at the Osei Tutu II Centre for Executive Education and Research, Nana Otuo Acheampong said GHL aims at expanding the reach of housing loans in the country.

“Once more GHL is pushing the boundaries of housing finance. This product is timely as it bridges the liquidity gap between financing needs and expected funds available in these periods of austerity,” he said.

Head of Mortgage Origination at Ghana Home Loans, Regina Baah, in a remark, disclosed that Quick Cash was a critical addition to the company’s product portfolio.

She indicated that the product was particularly suitable for self-employed mortgage applicants “since their loan applications would be assessed on future lump sum cash receivables.”

Since 2006, Ghana Home Loans has offered a diversified range of home loan products to assist thousands of Ghanaians to realize their dream of owing their houses.

The products include home purchase, land purchase, as well as home equity release mortgage.

Through its Home Completion and Home Construction mortgage products, Ghana Home Loans has enabled many qualified applicants to complete or build dream homes across the country.

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Why Pension Advances Are a Really Bad Idea

People do crazy things when they’re desperate. But here’s a move that takes even desperation too far: selling the rights to your pension.

Why not cash in your pension?

A pension advance, as salespeople call it, doesn’t sound too bad, sort of like borrowing on your 401(k), right?

Wrong.

And, just to be clear, it’s not a good idea to borrow from your 401(k) either. But at least 401(k) loans are subject to lending rules that protect borrowers.

Not so, apparently, with pension advances, in which a company offers you a lump sum of cash now in exchange for the right to your pension checks for a period of time. These deals are unusually expensive for people using them to get their hands on quick cash.

The rules aren’t clear

It’s not clear what authorities, if any, oversee companies that offer pension advances.

The Government Accountability Office, in reviewing the industry’s business practices, recently contacted eight federal agencies with possible authority over pension advances. Each had reasons why it wasn’t conducting oversight or educating consumers.

“Federal laws clearly prohibit military retirees from assigning their pensions and the Internal Revenue Service code that covers private pensions also prohibits the practice,” says a Forbes article. Nevertheless, pension advance companies continue marketing to pensioners.

Interest rate: 46 percent

The GAO found 38 pension advance companies nationally. All were Internet-based, and at least 21 were affiliated with each other.

Their pitches may appeal especially to people in financial distress or those who, because of poor credit, can’t get a bank loan. The Federal Trade Commission explains how the deals work:

Pension advances, also known as pension sales, loans, or buyouts, require you to sign over all or some of your monthly pension checks for a period of time — typically five to 10 years. In return, you get a lump sum payment, less than the pension payments you sign over. So, unlike other types of cash advances or loans, taking out a pension advance means signing over money you need to live on.

The GAO describes the costs for consumers:

For example, the effective interest rates on pension advances offered to the GAO during its undercover investigation typically ranged from approximately 27 percent to 46 percent, which were at times close to two to three times higher than the legal limits set by the related states on the interest rates assessed for various types of personal credit.

Ask these questions

The advances are funded by investors who are looking for profit and an income stream. They, too, stand to lose money, the Financial Industry Regulatory Authority warns.

The FTC lists six questions to ask if you are considering selling your pension rights. Among them:

What are the tax consequences for taking an advance?Will you be required to purchase life insurance naming the pension advance company as the beneficiary?Has the company been the subject of complaints?

Consider these seven alternatives

If your back is against the wall, here are seven safer sources of emergency cash:

Try credit unions and banks. Don’t assume you can’t get a loan from a credit union or bank without first investigating. Lenders’ standards and policies have relaxed some since the post-recession credit crunch. “Some banks may offer short-term loans for small amounts at competitive rates,” the FTC says. Tap your 401(k). If you’re like most Americans, you’re going to need all the money you can get in retirement. Borrowing against it could lose you valuable growth. It’s risky, too: If you lose your job, you’ll have to repay the whole thing within 60 days. Nevertheless, it’s safer and undoubtedly cheaper than selling the rights to your pension. Talk with a finance company. Also called small loan companies, these typically charge higher rates, but they do make small, short-term loans, often serving borrowers with weaker credit. Shop around. Beat the bushes for the lowest possible cost of borrowing. Compare the APR (annual percentage rate) of each loan you’re considering and choose the lowest rate. Hit up family. It’s miserable to ask family members for a loan. But the embarrassment is better than an old age spent eating out of garbage cans. Get inventive. There are many ways you may not have considered to scare up hundreds and possibly even thousands of dollars. These tactics probably won’t solve the immediate problem if you need money fast, but they’ll help you pay back a loan faster. You’ll find dozens of ideas by searching Money Talks News. Tighten your belt. Even careful money managers can be hit by a true emergency for which they’re unprepared. But if your problem is more the result of careless spending, take heart: You probably can save quite a bit by trimming fat from your budget.

After you’re back on your feet, build an emergency fund to help keep the wolf from the door in case you’re in financial trouble again.

This article was originally published on MoneyTalksNews.com as ‘Why Pension Advances Are a Really Bad Idea’.

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Millennials Prefer Plastic to Cash for Small Purchases

If your cup of coffee is less than $5, chances are you’re going to pull out cash to pay for it – unless you’re a millennial. Then you’re more likely to whip out plastic, regardless of how big or small your purchase is.

According to a recent survey by CreditCards.com, cash has long been king when it comes to small purchases (under $5). Overall, about two-thirds of credit card-carrying Americans pay for small purchases with cash, 22 percent use debit cards and 11 percent use credit cards.

But the younger generation is helping to change those figures.

CreditCards.com said:

The generational divide is striking. A slight majority (51 percent) of consumers 18-29 prefer plastic to cash, the only age group to do so. A preference for cash becomes stronger in each advancing age bracket, until at age 65-plus, 82 percent prefer cash.

Financial experts say paying with plastic isn’t bad. But millennials are using debit over credit by a near 3-to-1 ratio. Debit cards offer fewer protections for consumers. Plus, they don’t help build credit.

Both offer solid protection from fraud in case your card is lost or stolen, particularly if you report the disappearance in a timely fashion. However, Matt Schulz, senior industry analyst for CreditCards.com, told MarketWatch:

“If your debit card information gets stolen, somebody can take real money out of your account that you won’t be able to use to make a car payment or a doctor’s bill,” Schulz says. “That money may be gone for a week or two.”

Some people opt to pay with a debit card because they’re trying to be money-conscious, limiting their purchases to money they have. Bloomberg Businessweek said:

Debit cards work a lot like cash because the money comes straight out of a checking account. A credit card is more complicated. It can be a better choice than a debit card if you pay off your card in full each month because you get what amounts to an interest-free loan and rewards points to boot.

Other survey findings include:

Got kids? Parents are more likely (41 percent) to use cards to pay for purchases under $5 than people without kids (30 percent). As a parent, I usually don’t have enough free hands to fiddle with change, so using a card is easier. College-educated are comfortable with plastic. Americans who have graduated or attended college use plastic twice as often (39 percent) to pay for small purchases than their counterparts who haven’t attended college (22 percent). Politically, we’re on the same page (about one thing, at least) . When it comes to paying for a small purchase, 30 percent of Democrats and 28 percent of Republicans prefer plastic to cash.

I rarely carry cash. But if I have it on hand, I use cash to pay for small purchases.

Do you use cash, credit or debit to pay for small purchases? Share your comments below or on our Facebook page.

This article was originally published on MoneyTalksNews.com as ‘Millennials Prefer Plastic to Cash for Small Purchases’.

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Cairn tanks on $1.25-b loan to Sesa arm

July 24, 2014:

The Cairn India stock was marked down nearly 7 per cent in today’s trade. This is more a reflection of the market’s disappointment over the surprise revelation of a big-ticket loan given by the company to a related party, and less about Cairn’s weak show in the June quarter.

Cairn, in the June quarter, entered into an arrangement to lend $1.25 billion to a subsidiary of Sesa Sterlite – also a part of the Vedanta Group. Of this, $800 million has already been lent by Cairn for two years and the balance $450 million will be given in the coming quarters. The company’s stand that the interest rate on the loan – LIBOR plus 3 percentage points – will give the funds a better return than the 2 – 2.5 per cent they earn currently did not quite wash with the market.

One, lending the funds is a departure from the company’s earlier position that it will retain its formidable cash reserves for significant capital expenditures (about $3 billion) planned over the next few years to increase output from its mainstay Rajasthan asset. As of March 2014, Cairn had Rs 13,707 crore in rupee funds and $1.53 billion in dollar funds. The $1.25-billion loan facility is more than 80 per cent of the company’s dollar funds of March. Two, since Vedanta’s takeover of Cairn India in 2010-11, a section of the market has been worried that Cairn’s cash may be used to bail out weaker companies in the Vedanta Group. The loan facility to a subsidiary of Sesa Sterlite, which has not been in the best of health, seems to vindicate these concerns.

Sure, there’s a corporate guarantee given by Vedanta Resources Plc for this loan, but this is in the nature of a parent level guarantee and is not asset-backed. Also, it did not help that this major related-party loan transaction came as a surprise during Cairn’s June results conference call and was not disclosed by the company as and when it happened. The name of Sesa Sterlite’s subsidiary which gets the loan and the end use of these funds has also not been disclosed yet. Finally, if the $1.25 billion was surplus cash with Cairn, it would have earned higher returns if converted and deployed into rupee deposits. The 1-year LIBOR for dollar denominated loans is currently around 0.5 per cent per annum; so Cairn India will get a return of about 3.5 per cent on its loan to Sesa Sterlite’s subsidiary. Rupee deposits with Indian banks would have yielded the company a much better 9-10 per cent. Better still, the company could have returned the cash to shareholders through healthy dividends and buybacks. Last year, Cairn gave a dividend payout of about 22.5 per cent of its profits; this could have been raised. Also, in the share buyback programme which closed on Tuesday, Cairn acquired only 21.4 per cent of its planned purchase; after the sharp fall today, the stock, at Rs 323, trades lower than the maximum buyback price of Rs 335.

The management’s optimism about a big increase in Cairn’s oil and gas resource base in Rajasthan, and its roadmap to increase production sharply in the coming years did little to assuage market sentiment. Of course, it also did not help that the company’s June quarter performance was nothing to write home about, with profit down 65 per cent from the year-ago period. Even excluding the impact of the change in depreciation calculation which accounted for much of the profit decline, Cairn’s June quarter profit is down 13 per cent from the same period last year. Higher costs, including tax and Government outgo, along with lower foreign exchange gains more than offset the increase in overall output and better price realisation. Also, output at the Rajasthan block was 4 per cent lower compared with the preceding March quarter due to an unplanned outage.

(This article was published on July 24, 2014)

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Cairn India profit dives 65% in Q1 on new accounting rules

Cairn India to spend $3 bn on capex

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Not all Native Americans are Doing, Let Alone Getting Rich Off …

posted by Nathalie Martin

The Wall Street Journal has run several stories over the past few years about how Indian Tribes are getting rich off payday lending. These stories always tell a fraction of this story, leaving readers with the misperception that all tribes do this lending and that those who do, get rich. The reality is that only a small percentage of Native people do payday lending, and the only people getting rich off these operations are non-tribal lenders that use tribes to get around state laws. A week or two ago, it happened again. The Wall Street Journal published Payday Loans Have Brought Jobs and Revenue, but Tribal Leaders Say Government Crackdown Jeopardizes Business, once again claiming that tribes are getting rich off this business.

The article, also about operation choke point, claims that payday loan revenues make up one-fifth of the revenue on some tribal lands, but give no details on the dollars made. The story quotes one tribal member making $10 an hour, as well as the head of the Native American Financial Services Association, which represents just 19 of the 566 federal registered Indian Tribes. These people like tribal payday lending. But they are but one tiny voice in the debate as most tribes neither engage in nor condone this business. A July 17, 2014, an Al Jazeera story also covered operation choke point but told a very different story. This article entitled When tribes Team Up With Payday Lenders, Who Profitsdescribes exactly how tribal payday lending (part of the four billion dollar online payday loans industry) works. Little of the revenue flows to the tribe, sometimes 1% of the loan, or even just a finder’s fee of $2.50 to $5.00 per loan.

The tribal members in these communities often look more like the cash-strapped customers of these loans than like villainous tycoons preying on low-income Americans. Indeed, native people have frequently been victims of high-cost lending and some are not willing to participate in doing the same to others. See this other Al Jazeera article.

Even those who are willing find themselves far from rich. At one of the California reservations featured in Al Jazeera, the lending brings no jobs to the reservation whatsoever. These tribes appear online as the owners of payday lending enterprises. But the call centers and other operations are elsewhere, and the tribes themselves get as little as 1 percent of the revenue. If you’d like to learn more about this, listen to this radio show, featuring Shawn Spruce, a financial advisor to tribal people stuck in high-cost loans, and the read this very recent article by Jonathan Thompson from High Country News found here.

Consider also that in many communities, including border towns to Native American communities, storefront payday and title lending is the most prevalent business there is. Many (most) Native people are not willing to participate themselves. You be the judge but just know that there is more to this story than what you read in the Wall Street Journal.

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??? Full Report – The Pros And Cons Of Payday Loans


The Pros And Cons Of Payday Loans

August 1, 2014

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Financing is advantageous for those that need to borrow money. These type of loan providers will give you advance funds that you will repay in the future. You may be interested in a short-term loan–the payday loan. This article tells you all about it.

Payday Loan

Consider looking into other possible loan sources before you decide to take out a payday loan. Borrow from family, work with a bank, or use a credit card–all of these options are more financially sound than a payday loan. If you can get a traditional line of credit, you will pay far less in interest in the long run.

If you cannot repay the loan when due, seek an extension. You might find your payday loan company is willing to offer you a one or two day extension. Just be aware that you may have to pay more if you get one of these extensions.

Know that payday loan scams exist. There are those who pose as payday lenders only to rip you off. When you have found a loan business, check with the Better Business Bureau online and check out their reputation.

It seems like a new company pops up daily offering payday cash advances. A payday loan provides a small amount of money lent until your next paycheck. It is usually a very short-term loan. These loans should be viewed as temporary and only used in a real crisis situation.

Payday Loan

Before taking out a payday loan, consider other lending avenues. For example, if you get cash advance on credit cards, the interest rate that you get would be a lot lower than if you took a payday loan. Talk to your family and friends and ask them if you could get help from them as well.

If you are thinking about applying for a payday loan, make sure that you will be able to repay it in full in three weeks. If you will not have sufficient funds to cover your needs when the loan comes do, think about other alternatives. Look for a lender who is willing to give you an extended loan period.

Payday cash advances give people access to the money they desperately need. Lenders give them money on a temporary basis and borrowers have to repay that money by a certain date. Payday loans are useful because they allow for fast access to cash. Remember all the things you’ve learned here when the need arises for you to take out a payday loan.

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Related posts:

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  2. Everything Anyone Needs To Know About Payday Loans
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  4. Thinking About Payday Loans? Use These Tips!
  5. The Highs And Lows Of Payday Loans

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Payday Loans And Making Them Work For You | Shipping Wesley …

Payday Loans And Making Them Work For You

If you have money problems, you’ll need every option available to help you. Many people find payday loans to be their option for a fast money solution. This article will help you learn more about them.

Research the companies you want the loan from. Never just pick any company out of the phonebook or someone that you see on TV. Do online research, concentrating on customer testimonials, before you give any company your personal information. The best firm will safeguard your credit.

Make sure you do some research. Find a lender that fits you well. Make sure to check out several places to see if someone has a lower rate. Although it might be time consuming, you will surely end up saving money. There are many sites on the Internet that allow you to compare rates quickly and with minimal effort.

If the funds are not available when your payment is due, you may be able to request a small extension from your lender. You might find your payday loan company is willing to offer you a one or two day extension. Check the terms to see if the extension will add to your balance.

If you need to make use of a payday loan, but you could not find it in your local area, try to go to the closest state line. It may be possible to go to another state that allows payday loans and apply for a bridge loan in that state. Usually this only requires a single trip as they will be paid back electronically.

Financial emergencies create a lot of stress that can really weigh you down. This article’s tips and advice should have given you some relief from some of this burden you may be feeling. If you are thinking about taking out a payday loan, it’s critical that go into it with your eyes wide open so that you can make the best choice possible.

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July 25th, 2014 | Tags:

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