Categories

A sample text widget

Etiam pulvinar consectetur dolor sed malesuada. Ut convallis euismod dolor nec pretium. Nunc ut tristique massa.

Nam sodales mi vitae dolor ullamcorper et vulputate enim accumsan. Morbi orci magna, tincidunt vitae molestie nec, molestie at mi. Nulla nulla lorem, suscipit in posuere in, interdum non magna.

The 4 Worst Reasons For A Cash Advance

A cash advance is a loan from your credit card. It usually comes at a higher APR than regular purchases and is often limited to a percentage of your overall credit limit (terms vary by card and customer). Interest accrues from the date of the transaction (there is no grace period). Cash advances can be obtained in a bank branch, at ATMs or by using the paper convenience checks mailed and promoted by the card issuer.

Cash Advance in Theory

A cash advance could be a reasonable option for someone who has an emergency need for money and limited resources for getting it – especially when that person has a clear and reasonable plan for paying back the money in a short amount of time. It is, for example, a better option than a payday loan or title loan, due to the exorbitant triple-digit interest rates those loans typically carry and the greater payoff flexibility that comes with credit card debt.

Cash Advance in Reality

A cash advance is a very expensive way to get money, and the risk of falling into revolving debt cannot be ignored. The potential to pay many times the amount of the original advance (in interest charges) is very real. Furthermore, in addition to the higher interest rate, cash advances typically come with additional fees that everyday credit card purchases are not subject to.

Worst Reasons for a Cash Advance

The reasons a person might need a cash advance are as numerous and varied as the population of any city in America. Bona fide emergencies happen every day. But the reasons listed below should be a huge red flag that a cash advance would be a very bad idea:

1. You’re about to file for bankruptcy. New credit card debt does not magically disappear in a bankruptcy. Your creditors and a judge will examine your debts, including the dates and types. Once you know or have a strong inclination that you’ll soon file for bankruptcy, credit card use of any kind may be considered fraudulent. A cash advance immediately prior to filing is very likely to be challenged by the card issuer and that account may be excluded from the debts that are forgiven in a bankruptcy. For more, see When To Declare Bankruptcy.

2. To buy something you want but can’t afford. Credit cards should never be used to acquire things you want but can’t afford. It’s true that they can bridge the gap between a short term financial need and the ability to pay for it, but a person who confuses wants with needs is at risk of falling into revolving debt. At the very least, spending this way postpones your ability to establish a healthy emergency fund.

Going into debt for wants is also emotionally detrimental. A person who thrives on immediate gratification and the temporary emotional lift of a big purchase will eventually feel regret (and possibly depression, anxiety, stress and other debilitating emotions) when faced with the debt. The more compulsive the purchase, the more pronounced the regret. See 5 Ways To Control Emotional Spending.

3. To pay a credit card bill. Obtaining a cash advance to pay bills is a dangerous financial strategy that puts you very close to financial disaster. It is by nature only a very short term solution and it immediately exacerbates the financial troubles at hand.

4. To buy a gift for someone else. Never go into debt to buy a gift for another person. This is in the category of wants (versus needs). Generosity of spirit is an admirable trait, but not when it is at the expense of your own long-term financial health. We cannot give what we don’t have. No truly worthy recipient will be comfortable receiving the gift knowing it caused the giver to fall into costly debt.

The Bottom Line

Any consumer with a cash emergency should conduct a realistic and honest self-assessment to answer a few tough questions: Why do I need the money? Can I say no to this expense? Do I pay off my credit cards each month? How and when will I pay off this cash advance? What are the fees and interest rate, and what will my total cost be? What is my plan for building an emergency fund? See Budgeting Basics to help you get started on better financial planning.

Avoiding the need for a cash advance requires careful planning and conservative financial behavior over the long term. Financial solvency does not come easily to everyone, nor does it happen quickly. But smart money moves add up over time. For more information, read The Best And Worst Ways To Raise Cash Quickly.

[…]

Finding a new car loan while in bankruptcy

Thumbnail

Dear Dr. Don,
Where can I get a car loan for a new vehicle while in bankruptcy? My trustee has advised me to look for a vehicle and I have done that. But the dealers won’t work with lenders in my case and they all want a cashier’s check or cash. So do you have a name of a lender that would be willing to finance me?

Thanks,
— Helen Hindrance

Compare Best Auto Loan Rates!

Dear Helen,
As you may know, an individual in Chapter 13 bankruptcy is required to successfully complete a repayment plan over a three- to five-year period before the court discharges any remaining eligible debts.

The bankruptcy trustee should recognize that you need a car and that you need a loan to finance the car purchase. Incurring debt with permission is possible in a Chapter 13 bankruptcy. You will need to find a willing lender and get the trustee’s approval of the purchase and loan.

I hesitate to recommend a particular lender to anyone in bankruptcy. You want to buy new? That’s both good and bad. It’s good in that you’re unlikely to face extensive maintenance expenses that you can’t afford. The bad involves the instant depreciation or reduction in value of the car when you drive it off the lot. Even so, a lender is likely to be more comfortable with a new car loan than a used car loan.

Avoid so-called “buy here, pay here” places. If you are eligible to be a member of a credit union, look into whether one will provide you with a car loan. Another possibility: See if you can take a loan against your 401(k) plan at work.

One thing that caused a problem here could have been avoided. You went car shopping first and got frustrated when you couldn’t get a loan. I’d always suggest that a consumer get the loan first. Call the new car dealerships in your area and ask if their finance department works with subprime credit. Explain your situation.

Focus any loan applications within a short period of time so that your credit score doesn’t take multiple hits. When it’s clear that you’re comparison shopping, typically over a period of a week or two, multiple credit inquiries only count as one on your credit score.

[…]

How Do Payday Loans Work? | Symmes Law Group


How Do Payday Loans Work?

Posted on August 19, 2014 by Richard Symmes

One of the worst kinds of debts out there that debtors can obtain, is that of the payday loans. So why are payday loans so bad? Well for starters they may be able to charge you interest at an annual percentage rate of 1900%! Although most people take out loans with the intention of paying off their loan for on their next pay date, the payday loan companies are banking on that you will not need to make that payment. In fact they are betting on you having to take out an additional loan in order to cover the first loan. As Sara Silverman says in the video above, if you are thinking about obtaining a payday loan you should stop yourself and do anything else.

Payday loan companies are some of the most unregulated businesses out there and they are not trying to help you out and you will end up digging a hole for your self that you may not be able to recover from which may force you into filing for bankruptcy. The good news is that payday loans are dischargeable in bankruptcy, but don’t make the payday loan the reason for having to file for bankruptcy.

Also debtors should know that payday loan companies can be found locally in the Seattle metro area as well as online. The online companies you really have to watch out for as they are not bound by the laws of the United States and have been known to harass my clients even after they have filed for bankruptcy because they are overseas or on some foreign island where they won’t be subjected to U.S. law. Further I have even had former bankruptcy clients complain that they are being harassed by debt collectors who claim they owe a debt, but in fact this debt would have been discharged in the bankruptcy. These companies turned out to be scams and I can only imagine these people data was compromised from an overseas payday loan company. If you have to do it, take out the loan with a local company, but any payday loan is not advisable.

If you have additional questions regarding payday loan debt, give Symmes Law Group a call at 206-682-7975 to learn about your options.

Tagged with:

,

,

Posted in

Bankruptcy

,

Chapter 13 Bankruptcy

,

Chapter 7 Bankruptcy […]

Beware of Payday Loans | Rosenberg & Press

Q: Are payday loans dischargeable in bankruptcy?

A: Yes, you can list a payday loan on your bankruptcy schedules, however you should realize that it will have little to no effect. Payday loans by their very nature are illegal. Filing bankruptcy to remove payday loans is like asking your mugger to put his gun away and leave you alone because you have diplomatic immunity. The mugger doesn’t care.

Worse than that, you have given over all of your personal information to some nameless people in some distant country. They have sold your information countless times and are very likely engaging in identity theft all over the world with your formerly good name. You would be well advised to consider checking your credit report regularly now and perhaps even putting a freeze on it. Some of the people that I have come in contact with recently that are con-artist/pay day loan people are O’Bannion and Water Arbitration and Private Courier. They use innocuous names like Patrick and claim to be working out of the Sears Tower in Chicago, but in reality these payday loan people are working out of their homes on burner cell phones in India and Asia.

They will lie and tell you they are government agencies or even the police. They use fear and intimidation to steal your money. And many scared people willingly part with their money in hopes that they will go away. Unfortunately, they are like cats. If you put out a bowl of milk, the street cats will remember to come back time and time again looking for more. It just shows them you are an easy mark.

The moral of this story is never under any circumstances take a payday loan. Half the time they do not send the money. When they do, they charge usurious illegal interest rates and they steal your identity and threaten you forever like a loan shark. They say you can’t con an honest person, but its debatable when you look at the payday loan schemes.

This entry was posted in Uncategorized by RPAdmin. Bookmark the permalink. […]

Are workplace loans the new payday loans? – ktar.com

Image beacon.gif

Payday loans have never been the dandy of consumer advocates who say the short-term, high-interest loans can trap people in cycles of debt.

Defenders of the loans, however, say payday loans fulfill an essential need for a temporary financial need — such as a car repair.

But now there is a new type of loan surfacing across America. They are called workplace loans and some experts fear that they are just as bad as payday loans.

The Wall Street Journal, using industry-provided information, estimated that more than 100,000 employees in the United States have access to workplace loans — a number that could expand to more than 10 million employees in a few years. But while the types of payday loans do not have a lot of differences, workplace loans can be all over the spectrum.

“Workplace loans come in a lot of different varieties,” said Lauren Saunders, associate director of the National Consumer Law Center, a consumer advocacy group in Boston. “They run the gamut. Some are similar to payday loans with high interest rates and a short term. Others have lower rates with longer terms.”

Available to employees through their workplaces, the loans are offered by third parties — alternative lending companies that may be contracting with other lenders such as credit unions or banks. The employers tout the loans in the same way they might talk about a health and wellness program.

“It is pitched as part of a benefits package,” Saunders said. “And certainly employers know that their employees may struggle with expenses from time to time. And it may sound like a good thing, and some of them are. I don’t want to condemn them all.”

Like payday loans?

Employers offering financial products to employees is nothing new. In the early part of the 20th century, mining and other companies offered employees scrip or company “money” that could be used in the company store to purchase items. The high prices led some workers to feel like they sold their “soul to the company store,” as the song goes.

Technically, this “money” was similar to an advance on wages, a practice that many employers may give to workers who fall on hard times.

The twist is that workplace loans can be set up to take the money directly out of the borrower’s paycheck. There are other methods of paying back the loan, but this feature is the most troubling to Nasir N. Pasha, the managing attorney for Pasha Law, a law firm that specializes in workplace law in San Diego. “It doesn’t seem right to me,” he said. “It is like borrowing money against their future wages. That seems troublesome. It is getting close to being an indentured servant — it isn’t quite there, but on the spectrum of things it is moving closer to that.”

Pasha worries that employees in lower-paying jobs may be tempted to use the loans to meet everyday expenses. He also sees similarities between the loans and how some employees will occasionally ask for an advance on their wages.

“For an employee it is attractive to get a loan from an employer,” he said. “But that really changes the dynamic. It is like borrowing money from friends. You shouldn’t do that — especially if it is a long-term relationship.”

Handling debt

Richard W. Evans, an assistant professor of economics at Brigham Young University who did some consulting work for payday lenders back in 2009 and 2010, says the “smell test” for workplace loans is “if you see it tied to budgeting and helping consumers change their behavior … then it sounds altruistic.”

Less than one year ago, the Hyatt Regency hotel in New Orleans began offering workplace lending as part of a larger employee financial wellness program offered by Emerge Workplace Solutions Inc., based in Nashville, and funded by Liberty Bank in New Orleans.

La Tonya Hunter, the hotel’s human resources director, has seen employees take advantage of the unique lending program in the few months it has been available. “Emerge offers short-term lending with low interest rates for emergency situations, and about 20 to 30 employees have utilized Emerge services since its inception,” Hunter says. “However, the program is about more than lending. It also provides associates with education on planning and saving, at no cost.” Emerge Workplace Solutions’ financial planners also help hotel employees manage budgets, assess their current finances and discuss saving for retirement.

But Evans isn’t optimistic that workplace loans will solve the problems of debt for some people. For example, some people wouldn’t even have the option to borrow against a 401(k).

“There is something fundamental about some borrowers,” he said. “Some of us can’t handle debt.”

Finding solutions

To help somebody stuck in debt, he said, requires somebody to take a risk on that person — and, from a business perspective, often that person will not merit the risk, Evans said. “It is really a tricky problem,” he said. “It is hard to find market solutions to that problem.”

Bankruptcy is a government solution, he said. But other solutions may require charity.

Like Pasha, Saunders with the National Consumer Law Center doesn’t like the idea of workplace loans being used for everyday expenses. She said that it may be that employers could have a role to play in providing “low cost, safe loans for occasional use.” But she warns that the interest rates need to be lower, 36 percent or below. And the loans should not require budget-destroying lump sum payments, but smaller payments. She also advocates that the loans be restricted to once or twice a year.

Having the money taken directly out of the paycheck also bothers her. She said employees should be in control of how they pay.

“I have seen too many (workplace loans) that are very expensive, lead to a cycle of debt and skim the employees’ pay in a way that could make it difficult for them to meet necessities,” she said.

Evans, however, said that having the money come directly from the paycheck may be precisely the “collateral” that keeps the interest rates down.

Staying out of trouble

He also points out that one of the appeals of payday loans is that, for the most part, they are outside normal credit reporting. There is an anonymous aspect of taking out payday loans. Getting a workplace loan removes that secret aspect of the borrowing. “But if you are doing it at your workplace, it is almost like a signal that you are in trouble,” he said. “And that is a bad thing to signal to your employer, that you are in trouble.”

Staying out of trouble in the first place is the best solution, according to Saunders.

Like Evans, she gives some deference to workplace loans that are closely tied into financial well-being and budgeting programs at work. But the better route is for employers to take preventative measures to help employees.

“An employer is better off promoting savings programs than promoting loans,” Saunders said. “The workplace is a great place to promote savings programs.”

Instead of taking small payments over time to pay off a loan, workplaces could encourage employees to set up automatic payments into savings accounts — before a loan might be needed. Saunders points out that many so-called unexpected expenses are expected — such as an older car breaking down.

“Credit is not the answer,” Saunders said. “Taking on more debt is not the answer.”

Email: mdegroote@deseretnews.com Twitter: @degroote

[…]

3 Dumb Ways to Borrow Money

Money — everyone needs it, but not everyone has it.

Many people who find themselves in a financial bind aren’t left with many options, and sometimes applying for a loan isn’t realistic. The most accessible methods of getting quick cash come with a high cost, but those who need money badly won’t mind. Still, there are positive alternatives to shady loan methods, even for those with bad credit or who are in tight circumstance. Here are three:

Instead of a pawn shop…

Pawn shops are one of the immediate images that come to mind when thinking of fast cash. People get money from pawn shops by giving their personal items as collateral, and if they aren’t able to pay on their loan due date, the items are sold. The pawn shops profit because the amount borrowed is generally much less than what they would receive for the items sold. Loans are typically for 30 to 90 days, and interest rates and storage fees range from 10 to 20 percent each month.

Try online sites

If you need money quickly and know that there is no chance that you will be able to repay the loan, try selling your items on Craigslist, eBay, Amazon, or Etsy. These online sites help you cut out the middleman and allow you the freedom to list the prices you deem fit based on the value of your wares. Typically, the site will take a small percentage of your sales, but the sum is insignificant compared to the profit pawn shops make at your expense.

Keep in mind, however, you items may not sell right away, so be sure to do your research to see what others are selling it for, and perhaps you can price it lower in order to sell it faster.

Instead of a payday loan…

Of all the potentially shoddy ways of borrowing money, getting a payday loanseems the least extreme. However, getting caught in a never-ending cycle of debt repayment is a very real outcome of using this method.

Here’s how it works: individuals who take out payday loans, which are small short-term loans that usually range between $100 to $1000, list two or three of their upcoming payday dates on their loan application. Once payday rolls around, the lender collects the balance due, but individuals can always opt to “rollover” the loan until the next payday. This is where people can get into trouble.

Payday loans come with high interest and fees, but the laws regarding these loans vary from state to state. In 2013, at least one Utah payday-loan company charged 1,564 percent annual interest, roughly translating to $30 in interest each week for every $100 loaned. In New York State, payday loans are illegal, for these reasons listed on their site:

– “Payday loans are designed to trap borrowers in debt.”

– “If the loan cannot be paid back in full at the end of the term, it has to be renewed, extended, or another loan taken out to cover the first loan. Fees are charged for each transaction.”

– “The annual percentage rates on payday loans are extremely high, typically around 400% or higher.”

Try these methods

There are a variety of methods available to those seeking financial help, the most dire of which we have outlined in our bankruptcy alternatives article. We have also discussed strategies for paying off massive debt. However, here are some quick, specific alternatives to try before getting a payday loan:

– Negotiate with your creditors — ask them for more time, and ask if they can lower your late payments, finance charges, or interest rates. Telling them your sincere story can help.

– Find a community development credit union which can provide affordable small-dollar loans.

– Have a consultation with a credit counseling service.

– Consult social service agencies which can assist in getting individuals necessities such as food, housing, and home heat costs.

– Ask for a salary advance.

– Try peer-to-peer lending.

Instead of a buy-here-pay-here car dealership…

Buy-here-pay-here car dealerships use sensational advertising to attract individuals with bad credit who can’t lease or buy a vehicle at a typical car dealership. The sales process begins by looking at that person’s income and credit. Those who make the cut can buy a car, but at a high price — average annual interest rates at these specialized dealerships are 24 percent. That’s three to four times the rate of normal used car loans.

What’s worse is that according to The Center for Responsible Lending, 30 percent of these cars end up becoming repossessed and resold. CNN Money reported that some of these dealers repossess their cars when the borrower is just one day late.

Try: “Cancel Anytime” car dealerships

Dealerships like DriveTime’s “Cancel Anytime” lease allow individuals to pay as little as $895 as down payment for a vehicle, and drive the car home that same day. Customers make low bi-weekly payments without any commitment, and should they become unable to continue payment, can simply return the car. The best part? They are always welcome to re-lease again in the future.

It is wise to save up enough money so you can offer a high down payment in order to qualify to finance a vehicle. If you’re feeling extremely desperate, the most immediate options available to you include selling your stuff, creating a crowdfunding profile page, and asking friends and family for cash. Don’t settle for ill-advised loan methods when it comes to something as important as your life.

[…]

How To Handle Payday Loan Harassment | Bankrate.com

Image JustinHarelik-66x76.jpg

Dear Bankruptcy Adviser,
I have a company threatening me with a bench warrant. I believe it is from a payday loan I got a long time ago. They call me and my family. I don’t even know how they got my parents’ phone number. They call me at work and tell my co-workers I am a deadbeat. I am confused and upset. Can I do anything at all? This is horrible!
— Lucy

Dear Lucy,
I agree, it is horrible. I am truly shocked by this development in the payday loan world. The first time that a client called me about these types of calls, I was livid. I tried calling the company numerous times to yell, scream and threaten them with lawsuits.

I soon learned what you already know: There is nothing to be done about this. At least nothing you can do to go after these illegal actors.

I can’t say for sure how this illegal conduct has been able to continue for so long without either local or federal law enforcement agencies intervening. I have my theories, but nothing I can prove so I will just keep them to myself.

You took out a payday loan at some point in the past few years. You then defaulted on the scheduled payment. The lender tried to collect, but to no avail. It then sold or transferred the account to a third-party debt collector.

The third-party debt collector is usually an offshore company or a company that moves around and has no fixed location in the U.S. The collector will call you and do skip traces to find family and friends.

The debt collector says one of the following to you. He or she will also say a variation of the same thing to your friends or family:

I am on my way to the court to serve you with a lawsuit for bank fraud. You will go to prison for this.I am sending a local sheriff to your house today to arrest you for bank fraud. You bounced a check and now you are getting arrested.I have a judgment against you for bank fraud because you bounced a check. Even if you filed bankruptcy, you can’t wipe this out because you committed fraud.

All of this is untrue.

While the calls to friends and family might not end, you can stop the calls to yourself. You merely have to be strong and say to the debt collector that you know he is a fraud. You know he is not going to do anything, and you know he is going to keep calling.

Just say, “OK, I understand. Sounds serious, but I don’t believe you. I know this is a scam. I assume you will be calling me a lot, but I know you are not going to do anything. I guess we will be talking again tomorrow.”

Period. All my clients that say this tell me that the collection calls stop. The collector is trying to scare you into paying. Once he or she realizes you are not scared, he or she moves on to the next victim.

[…]

Festive financial pressures turn Britons towards payday lenders …

Image gI_87648_BE_Normal_strap.jpg

Manchester UK (PRWEB UK) 30 November 2013

In November 2013, BBC News ran an article about a recent report from the government backed Money Advice Service which revealed that nearly 9 million people in the UK are struggling with serious debt problems.

The report showed that areas mainly affected were in the North of England, particularly Hull, Manchester and Liverpool, with over 40% of each cities residence struggling with day-to-day issues of debt.

A particular concern highlighted in the report was that very few people seek help with their debt problems.

Caroline Rookes, chief executive of the Money Advice Service, said: “Millions of people could escape their spiral of debt by [seeking] advice. We know it transforms lives and the sooner people access it, the better – to take steps to improve their life for good.”

Shaz Sulaman from financial solutions specialists Baines & Ernst says, “We agree completely with Caroline Rookes – the sooner people seek help, the sooner they’ll be on a path towards a future free from debt.

“While facing up to the reality of your financial problems can be daunting, it’s important to realise that there is help available and that you don’t have to deal with debt alone. Bankruptcy is no longer the only option available – there are solutions that can help you lower repayments, freeze interest and charges and even write off debt. All it takes is one phone call to find out what help is available to you.”

However, with the pressure of Christmas looming over many households at the moment, the UK’s problem with debt won’t be declining anytime soon.

In fact, a separate report from the Money Advice Service – as featured on Sky news – highlighted the worrying trend of people turning towards payday lenders in the run up to Christmas, with 1.2 million people across the UK considering taking out a payday loan.

“Christmas stretches even the most stable of household budgets – therefore it’s understandable why people in financial difficulty may see a payday loan as an attractive solution over the festive period. Parents are under increased pressure to buy the very best gifts for their children and advertisements place so much emphasis on having a ‘perfect time’ which normally equates to spending huge sums of money on gifts, food, decorations and outfits for the party season.

“Payday loans are not designed for long-term lending – the simple fact is if you cannot afford to repay the loan in full and on time, you could incur additional fees. These costs can lead people to take out more loans to cover previous borrowings and this is how spiralling debt can occur,” adds Shaz Sulaman of Baines & Ernst.

The report from MAS also showed that 32% of those questioned were considering adding the cost of Christmas to their credit cards.

This may have been a manageable solution in the past, the rising cost of living now makes it harder for people to clear debts accumulated over the festive period, with 9% of those questioned for the Money Advice Survey still trying to repay last year’s Christmas debts.

“While people feel under pressure to afford Christmas, we would ask people to look at their finances and make sure they can afford the financial commitment that comes with taking out credit.

“If you are worried about your finances and are already struggling with debt, the best thing to do is avoid adding to your financial worries and get help. It would be much better to start the New Year off on a good financial footing rather than laden down with additional debts,” concludes Shaz Sulaman.

[…]

Reason Foundation – Payday Lending: Protecting or Harming …

The payday lending industry has enjoyed meteoric growth in the past couple of decades. From virtually no payday lending stores in the early- to mid-1990s, it has grown to more than 20,000 outlets today. These payday lending facilities extend about $38.5 billion in short-term credit to 19 million American households a year.

The payday lending industry’s success has been accompanied by a backlash from politicians, consumer groups and many journalists who accuse the industry of taking advantage of vulnerable individuals and targeting certain populations in order to extract their wealth. The result is that regulation of payday lending has grown almost as fast as the industry itself.

The industry responds to its critics by saying that it provides a needed service to people underserved by banks and credit unions, allowing them access to credit they would not otherwise have so that they may make it through periods of financial difficulty. Who is right? On closer inspection, many of the criticisms of the payday lending industry turn out to be based on myths:

Payday Lending Myth #1: Excessive Fees. Critics note that typical payday loan fees range from $15 to $30 per $100 loaned over a two-week term. If one were to project the costs out over a one-year period, would translate to an APR of 390 percent to 780 percent. However, it simply does not make sense to project payday loans out over a whole year when they are intended to be repaid in two weeks. What’s more, the short-term alternatives to payday loans – like overdrafts, bounced checks, late credit card payments, and utility reconnect fees – will often prove even more costly. Payday Lending Myth #2: The Debt Trap. Critics charge that payday lending companies trap their customers in a cycle of debt. This is contradicted by empirical evidence, however, which suggests that payday lending bans result in worse outcomes for consumers – in the form of more bounced checks, increased rates of bankruptcy, and so on. Ultimately, the debt cycle theory seems to get the causality of payday lending behavior backwards: people use payday loan services because they face financial emergencies, not the other way around. Payday Lending Myth #3: Lenders Target the Poor and Minorities. The evidence suggests that while payday lenders are more likely to locate in markets with relatively low household incomes, they are not more likely (after controlling for income) to locate in markets with disproportionate minority populations. To the extent that payday lenders do aim their services at those with low incomes, this may be: (a) an effort to tap an underserved market; and (b) a reflection of the fact that payday customers tend to be those in financial distress. In other words, there is a greater need and natural customer base for payday lending in relatively low income areas. Payday Lending Myth #4: Most Consumers Want More Protection from Payday Lenders. Survey data suggests that a significant majority of payday lending customers are satisfied with the service they receive. Meanwhile, state regulators report very few complaints about payday lenders.

Moreover, the evidence shows that payday lending offers many benefits to consumers:

Greater Consumer Welfare. Payday loans allow consumers to better weather short-term financial difficulties, avoid bankruptcies and bounce fewer checks. Increased Access to Credit. Payday loans offer access to credit to those who might not be able to obtain it from other sources such as banks, credit unions or credit cards. Transparency. Payday loan terms are displayed prominently in stores for all to see, so customers do not have to parse hundreds of pages of legalese in bank/checking account terms to determine how much the fees will be and when and how they will be assessed. Cost. Payday loans frequently offer cheaper rates and better terms than alternate options, such as bank overdraft/bounced check fees, credit card late fees, utility late/reconnect fees, pawn shops, auto title lenders and rent-to-own businesses. Better Than Alternatives. Payday loans may be preferable for other reasons, such as allowing borrowers to avoid skipping medical visits, having utilities shut off, resorting to dangerous loan sharks, or enduring embarrassment and potential conflict from borrowing from friends or relatives.

Ultimately, consumers have already rendered their verdict: they believe they benefit from the option of payday loans. So instead of restricting or eliminating payday lending markets through regulation, policymakers should seek to open them up to competition by repealing payday lending bans and regulations. The goal should be to maximize consumer choice and minimize the cost of short-term loan transactions. This will benefit economic growth generally and short-term borrowers in particular.

[…]

Fetch Same Day Cash – Get Credited Within 24 Hours of Approval …

Image Payday-Loan-Online.jpg

Do you need cash urgently to cater to some sudden fiscal needs like car repair, medical emergency, home improvement or rent? Go for same day cash. This is a short term credit offered for small financial needs. This finance is designed to cater to some unexpected expenses of life.

In order to fetch this credit, you have to provide some personal details that include, your age proof, income proof and social security number, etc. These loans are fax free and there is no credit check or evaluation of your collateral involved. Hence the approval of this finance is quick and the money is credited to you within the same day of application. This fiscal aid requires you to fulfill some pre-requisites which are: 1. You should be a citizen of the UK, aged at least 18 years. 2. You shall be in a regular job for at least six months, with a monthly salary of minimum £1000. 3. You should have a valid checking account, at least three months old. 4. You shall be living under the same address for at least last 3 months. You can use the availed finance for paying off unexpected medical bills, car repair bills, travel expenses, grocery bills, rent, outstanding debts and pending debts. You can extract money ranging from of £100 to £1,500 with the help of these loans. The repayment term of the credit availed ranges from 2 to 4 weeks. Herein, interest rates are slightly high, as the credit is offered for a short term. In these loans, there is no credit check. People having bad credit troubles like, arrears, bankruptcy, late payments, CCJ’s, payment defaults, IVA, etc, are free to fetch this credit. Same day cash is designed for small fiscal needs. With the help of these grants you can take care of unexpected fiscal demands of life. Daniel Mcallen is offering loan advice for quite some time. To know more about same day cash, online cash loans, cash advance loans, same day cash loans, fast cash loans, instant cash loans visit : Cash Loans
[…]