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Payday loans are small dollar loans where money is provided to the applicant for a short period of time till the day the next paycheck arrives. The money involved here is usually between $300 and $1500 and it is for a couple of weeks. This is why payday loans are also referred to as short-term loans or cash advance loans – there are many names for it. These loans won’t solve your long-term financial situation, but are great to solve temporary financial emergencies.

There are many other advantages of payday loans, apart from obviously helping people solve their immediate financial emergencies by providing money when they need it. For instance, these loans are very convenient, faster than other loans, and the eligibility checks are not as rigorous as regular conventional loans. This is why payday lending has become so popular in the United States and in many other parts of the world.

Most people refer to them as a payday loan, which is the general term for these lending schemes, but did you know that there are quite a few types of payday loans? There are many similarities between them, but there are a few differences as well. Let us investigate in more detail.

The Many Payday Loan Types

The different types evolved over time with a common objective – the help customers get approval and get the money they need as quickly as possible in an emergency. Here are the most popular types of payday loans.

Payday Lending Stores – These are the physical stores that you will find almost throughout the US. Just walk up to the store and say that you need a loan. Tell the amount, submit the information, and you are through. Processing will begin almost immediately. The money will be credited to your bank in 2-4 business days. The advantage of this payday loan is that, you get to meet the lender personally and understand the kind of person he is. You also know where to reach in case you have to communicate later for whatever reason.

Online Payday Loans – This is all for convenience and privacy. You can apply for the comfort of your home and nobody will ever find out that you are a little short of cash. Just visit the website of the payday lender and make your application online. Fill out the small form and submit all the necessary information. You can apply any time of the day and from anywhere as websites are open 24×7. But be careful while choosing the lending company because you are not meeting the business face to face.

One Hour Payday Loan – In a real emergency you cannot wait because the money can be really handy. This payday loan gives you the money in just 1 hour after your application. Just make sure that the details you submit are accurate and true. This is very important because the payday lender won’t approve the loan if he suspects that you are trying to get the money with wrong information or are posing as someone else. The information you submit should be valid, and you have to meet the requirements of the borrower. If everything is in order, you can have the money in your bank in an hour, provided your bank can accommodate this fast transaction. However it works only during when the banks are open and everything is perfect in your application.

24 Hour Payday Loans – The lending business will start processing your application and the money will be deposited to your bank account usually within 2-4 business days. This is what normally happens. But with 24-hour payday loans, it is deposited within 1 business day, so it is a lot quicker. As opposed to this, traditional banks and lending institutions may take a week, and sometimes even up to a month to give you the money you need as a loan. This is why these are not practical options in an emergency. You should think of trying 24-hour payday loans if you need the money really quickly. If you apply with us and if approved our lenders will also give you a loan in 24 hours – not applicable on weekends and holidays.

No Fax Payday Loans – This is also very convenient because you don’t have to fax any papers like, for instance, your pay slip that proves the amount you are making every month. All you have to do is just enter the amount online, and be truthful about it. This particularly helps those who don’t have access to a fax machine. Apart from the fax part, everything else about the loan is the same. It is assumed that the information you have submitted is true and accurate. But remember, the lending agency has a way of finding out. So be truthful always.

30-Day Payday Loans – Most payday loans anywhere in the country are for around a couple of weeks. But there are some instances where a few lending companies agree to offer the loan for a longer period of time. It can be up to 30 days, and in some instances, even more. For instance, let us assume you had a major expense just after payday, and because of this almost all the money you made had to go towards payment. So you are left with virtually nothing for the rest of the month. Take a payday loan for the remaining 25 or so days of the month.

Military Payday Loans – Many payday loan companies have special plans for those in the military service. Often, the terms are friendlier, because of the kind of service they offer, including the fee and the rate of interest. You can borrow up to 40% of your monthly income, based on your rank. However, remember, there are stricter rules for military personnel in financial matters. The Uniform Code of Military Justice article 123a says that people in the military who don’t meet their financial commitments can be confined, transferred, court marshaled and even discharged. Those based in the US, will have the money in their bank within 2-4 business days. Those based overseas can get it through Western Union almost immediately. Wire transfer takes 1 business day.

What to Check Before Taking a Payday Loan

A payday loan is a great help in many situations, like for instance, when you need the money to pay the utility bills, make urgent car repairs, you are joining a new job and is a little short of cash, you are self-employed, you need the bond money to pay for the perfect property, and for urgent and unexpected medical expenses.

But don’t be hasty when applying for the loan and receiving the cash. You need to do a few checks before finally agreeing to take the loan. Always check the following –

1. Check the terms and conditions always before applying – Yes, you want the money quickly, but make sure that you read the terms and conditions before finally agreeing to take the loan. Check for the fees, rate of interest, repayment period, and such others.

2. Automatic renewal – Some lenders will renew your loan automatically. Ideally you want to repay on the due date and get out of debt. So make sure that there is no automatic renewal with your loan.

3. Check the law in your state – Always find out what is the payday lending law in the state of your residence. It is different in many states of the US. There are caps on how much fees and interest can be charged. Make sure that the lending company isn’t charging more from you.

4. Contact information – Make sure that you can reach the payday lender if you need to. This is particularly important if you are applying online. The website should have contact information published. Call up and verify. It is always good to talk to the lending business before taking the loan.

A payday loan is the most practical option to get the money when you need it in an emergency or when you are a little short of cash. This is why payday lending has become so popular in the United States and elsewhere in the world. Just make sure to check everything before taking the loan and pay it back on time. Everything should be alright. Remember, there are many names and types of payday loans. There are many common elements, but there are a few differences as well. Choose the best one for you.

You can apply payday loan with us – we adhere to all legal rules and laws.

The economy is not perfect. We all earn money, some of us more than others, but the cash is often not adequate. Rich or poor, we often can do with some more cash. Sometimes the extra money is for buying things we want, but may not be essential to our existence, such as the latest television set or the latest gadget, or for going on a long cherished vacation, but at other times, the extra cash is for more immediate and urgent needs, like for instance, buying medicines, paying off utility bills, or making urgent car repairs. Of course, for purchases like a car or a home, we need a lot of extra cash.

A loan can give us the cash we need. There is no stigma attached to a loan anymore, as thousands of people the world over take a loan for various reasons. In fact, taking a loan is now a fairly common and accepted practice.

Both individuals and businesses need loans. While individuals need the extra cash for personal reasons, businesses need the money for buying tools, setting up plants, making expansions, paying wages, buying raw materials or supplies, for operating expenses and for a variety of other reasons.

Top Reasons Why People Take Loans

Credits and loans are sometimes the cornerstones of our personal finances. Here are some of the main reasons why people take a loan.

1. To buy a car and keep driving – Automobiles cost a lot of money. Most people thus need to take a loan. But cars break down too and the cost of repairs can be a lot of money as well. Many of us don’t have the money for this sudden and unplanned expense. A loan can help us pay for this repair.

2. For purchasing a house – That’s an even bigger investment than a car. A life changing event, it usually goes into thousands of dollars. A mortgage loan gives you the money to buy a house. With a smaller, short-term loan, you can make upgrades or carry out repairs, like painting jobs, garage repairs, replacing faucets, the tiling, buying a new table or cupboard or such others.

3. DIY jobs – Hobbyists working on do-it-yourself projects need the extra money to buy supplies and work on their projects. A loan for a few more dollars can come in as very handy here.

4. For their kids – As parents, we feel bad when we cannot buy things for children that they love and want. The smile on their faces and happiness when they get what they want is priceless. Those who don’t have money saved for the Christmas gift can take a small loan to buy the gifts. In fact, many people take loans to fund their Christmas or other special occasion purchases.

5. In an emergency – Money helps us immensely in an emergency. Perhaps it is to run some medical tests, buy drugs, or non-medical like paying off the home rent, utility bills, or urgent car repairs. It could be anything. Money can be a great crisis-saver in an emergency, often the most important thing. The worst part is, you never know when an emergency can hit, so it is almost impossible to prepare in advance for it, unless you have a lot of extra cash with you, which very few people have. Even if you are making decent money, it could mostly go away into investments, so you may not have adequate liquid cash.

6. When the monthly earning is low – Unfortunately, many people are not earning enough each month from their jobs. The economy is tough, so it may not be easy to get another job or earn extra from gigs on the side. It is a paycheck to paycheck existence for them. Even a few hundred dollars more could make a huge difference. A short-term cash loan till the next payday is the answer.

Long-Term Vs. Short-Term Lending

There are two types of loans – long-term and short-term. A long-term loan is for big-dollar spends such as for buying a home or a new car. A short-term loan, on the other hand, gives you a smaller amount of money for more immediate and other purposes.

Many experts are of the opinion that short-term debt is better because of the uncertainties attached with being in debt over a long period of time. Technology changes, advanced robotics and artificial intelligence taking away jobs, the economy going into depression, customer behavior changes, businesses going bust or closing down divisions, political or military troubles! There are far too many risks when you don’t know what the future is going to bring.

We all expect to earn more in the future. But in an uncertain world when you don’t know the future, it might be very risky to take a loan for 15, 20, or 25 years. What happens if you default? They could take away your assets, home or car. Thus, a short-term loan for your immediate requirements or little dreams is the better bet.

A Payday Loan is the Best Form of Short-Term Lending

Of course, there are many other short-term lending choices for consumers, but the fact is that, payday lending is the best option for most people. Why? Let us investigate.

In recent years, many policy makers and critics have come down heavily on payday lending. But it still continues to grow. Millions across the United States have been taking payday loans for many years now. In fact, these loans have now become popular around the world as well, from the UK to mainland Europe, Asia, Australia, and even Africa.

The millions of people cannot be wrong. They are asking for these loans because they see value in the offers, and because payday loans offer them the maximum benefit in an emergency or when they require extra cash.

Understanding Payday Loans

Payday loans are small dollar cash advances where the amount offered is usually between $300 and $1500. It’s only for a few weeks till the next pay check arrives. The best part about these loans is that, you are out of debt quickly, so there is little associated risk. You can apply on the Internet from anywhere. Your application is processed and approved quickly and money is deposited directly into your bank account usually within 24-48 hours.

Unique Features and Advantages of Payday Loans

1. These are loans for very small amounts. You will thus never be in a lot of debt.
2. Loans between $300 and $1500. You can repay easily because of the low amount.
3. Private application. There is complicated paperwork with traditional loans. It can take weeks and even months. With payday loans, you can apply online from the privacy of your home. Nobody has to know that you are a little short of cash.
4. Save time – A payday loan is the best option when you cannot wait in an emergency. All you have to do is just submit basic information (your name, physical and email address, phone number, monthly income, and social security number) and complete the application online or offline. Application processing and approval is usually over within the next 2-3 business days. You don’t want delays in an emergency.
5. There are no mortgages or guarantors in payday loans.
6. The lending agency won’t ever ask you why you need the money.
7. You pay back much less towards the interest and fees, as the loan amount is small and the time duration is just for a few weeks.
8. You can take multiple loans in a year, but not at the same time.
9. There are restrictions on the interest rate and fees, so you never pay back a lot of money. Your burden is always limited.
10. There are industry watchdogs and regulators always looking at the lending agencies, working in your best interests. So you are always protected.

You Can Apply For A Payday Loan Here

We need loans sometimes. There is nothing wrong in borrowing money, but make a conscious effort to avoid long-term debt. If you need a short-term loan, consider payday lending. Millions of people in the United States are taking payday loans, paying back their debt, and solving their immediate cash flow situations or emergencies. It’s a great way to finance your requirements.

Short-term debt, such as a payday loan is better in many ways. What is a payday or a cash advance loan? If you are a little short of cash or in an emergency and need funds to see you till the month end, you can approach a payday lender for this money. The money is directly credited to your bank account, usually within 24-48 hours.

You have to repay once you receive your next pay check. It’s a great help when you need to make urgent car repairs, pay utilities, or make some other urgent payments. These cash advances are typically for short terms, for 2 to 3 weeks, and the amount is usually between $300 and $1500. The payday lender won’t ask you why you need the money.

The Future Is Uncertain

Most of us can do with some extra money. That is why so many people take loans for a variety of reasons. Taking a loan is always a big decision because when you do, you are making a commitment of paying off the debt, plus the fee and interest, within time. The term of the loan is as important as how much money you have taken as the loan.

We all assume the future is going to be better than today, but that is not always the case. Things happen. Businesses lose money. The entire industry is sometimes replaced by a new trend or a technology breakthrough. People lose their jobs. There are bad times. In fact, the experts are already predicting there could be mass-scale job loss in most sectors because of the growing threat of robotics and artificial intelligence, and that’s why the idea of the “universal basic income” has been mooted.

We have to take responsibility of our future until that happens. Do you know what is going to happen after 10 years? Will your skills and knowledge still be relevant? Are you sure you will earn enough money in 10 years to pay off the growing expenses and still save for the future? These are all serious issues that need thought.

It may be very risky to take a long-term loan for say 10 or 20 years when you don’t know what the future is going to give you. Take a short-term loan instead, such as a payday loan. Let us now delve deeper into the advantages of short-term lending.

The Advantages of Taking a Short-Term Loan

1. Speed – You can get short-term finance, like a payday loan much faster as compared to long-term loan. No long queues. No complicated paper work to submit and sign. You may even apply online from the privacy of your home. Nobody needs to know that you are a little short of cash. Your application is reviewed, approved, and the money is transferred to your bank account directly within 2 to 3 days.

2. No Collateral – There is no collateral for short-term finance such as a payday loan. This means, people without any collateral can also get a loan.

3. Risk – There is considerable less risk with short-term debt. A payday loan, for instance, is just for 2 to 3 weeks and the amount involved is usually between $300 and $1500. In contrast, long-term loans are for thousands of dollars and are for many years. Thus, you have lower risks with payday loans.

4. Stay In Debt For A Shorter Time – It’s not a good feeling when you are in debt for several years. Often, the priority is always to pay off the monthly debt first before doing anything else. This requires making compromises, and when done over time, it brings about lifestyle changes. There is no such thing with short-term debt. Your entire loan can be repaid in a matter of weeks so you can go back to your old lifestyle.

5. Less Interest – If you are in debt for a longer time, this invariably means that you will end up paying more money as interest, even though the rate with short-term debt may actually be slightly higher. Often, just the interest amount can go into hundreds and even thousands of dollars, depending on the amount you originally took as debt. So a short-term debt saves you money. Imagine how much you could have accomplished with all that money. Simple truth – Pay back quicker, accrue less interest, save more money.

6. Emergency Funding – A payday loan is a great way to fund an emergency. With long-term debt, the application process is lengthy. It can sometimes even take weeks and months before you finally have the money, and by that time, the reason why you needed the money may not be there anymore. With payday lending, on the other hand, you will have the funds in 2 to 3 days maximum. So you will have the money just when you need it.

7. More Predictable – It is almost impossible to make a correct estimate of your financial condition in the distant future. There are recessions, job losses, technology upgrades, and so many other risks. No one can be sure of the economy in say, 20 or 30 years. It could be a different world. However, with long-term debt, you will still have to pay back the debt, no matter what. That is too much risk. It is way easier to plan and budget for the short-term.

8. Less Stress – Stress can be killing. We are all too stressed these days, because of so much pressure at work and home. Long-term debt will add to that. Will I be able to repay in time every month for the next 15 years? Will I receive those embarrassing calls at home and work if I fall behind the payment? Will they take away my car or home? Too much stress can cause many health issues as well. Try to lead a stress free life by avoiding long-term debt if you can. With short-term debt, you will be out of the burden much quicker.

9. Simplicity – Short-term debt, such as a payday loan is way simpler. Apply online, get approved quickly, and you have the money fast, just when you need it. Make your emergency payments or use it for whatever other purpose. Pay it back on time, and move on. Problem solved. Long-term debt, on the other hand, is so complicated that it will often change your lifestyle and preferences.

A payday loan is a great practical solution to your current cash flow situation. All you have to do is apply to get the money. The approval process is not as complicated or strict as long-term financing. If you have a sudden situation and need some emergency cash, this is the way you can get the money. This is precisely why payday lending has become so popular in the United States over the years. In fact, not just the US, there are now payday lenders all over the world that are helping people in need.

Critics say the interest and fees are higher than many other types of loans. But do keep in mind that this is the case with all types of short-term finance. With payday lending, you will only be taking a few hundred dollars and that too for a couple of weeks, so the total amount you have to repay is never much. What you get in return is much more – urgent cash when you need it, and the ability to make emergency cash payments, perhaps to buy medicines, make car repairs, or pay off the utility bills.

A payday loan gives you money quickly. It’s a great help in an emergency, when you are short of cash but have to cover for an unexpected situation. The cash advance is usually for a small amount (between $300 and $2000) and it’s for a maximum of a few weeks (till your next payday). However, in spite of this, some people have problems in repaying their payday loan, just as is the case with any other type of loan.

There can be additional fees when you default and legal consequences as well. Knowing how best to pay off the payday loan is thus going to help you immensely.

Understanding the Payday Loan

  • What you can expect – Payday loans are among the most convenient ways of borrowing money. Yes, there is a charge, but it is less than what you have to pay as the overdraft fee to the bank for overdrawing money from your checking account. But, a late fee will be applied if you cannot repay on time, and there will also be rollover rates if the loan term has to be extended. The total amount due as interest can shoot up if you keep the loan repaid for a long time, making it even more difficult for you to pay back.
  • Read the fine print – There are some lenders who renew or extend the unpaid loan with a borrower’s consent. It is included in the terms when you take the loan. So read the terms and conditions carefully before you sign any document.

Paying Back the Loan

Do not hesitate to ask the lender if you have any question about the policy. Get all the clarifications you need right at the start so that there is no confusion about when and how to pay back the loan.

  • You need to know whether the loan will renew automatically. There are loans that renew automatically and set a new payment date, unless you tell the lender specifically to end your loan.
  • Understand the privacy policies of your lender. Ensure that your personal information is always protected.
  • Learn about the additional fees before taking the loan. There are lenders who will charge fees for depositing the amount to your bank electronically.
  • Find out how best to contact the lender. There are payday lenders who are entirely online. Also, ask about the response time.
  • If you authorized the lender to deduct the amount due directly from your bank account, you should know the precise amount that will be withdrawn, and the date when this withdrawal will happen.

Create a Budget

Create a responsible budget within your income. This will give you more fiscal control and help you pay back the loan on time. You can avoid the late fees and interest rates.

  • Buy groceries so you can cook at home, instead of eating out.
  • Watch movies or sports on television, instead of going out to see a movie and spending money on the ticket and snacks.
  • Spend quality time at home with the kids. Play a game with them, instead of taking them to the “kid’s zone” at the shopping mall.
  • Go on a hiking or camping trip on the weekend, instead of burning money at the expensive amusement park. You will get exercise and fresh air.

Pay It Back After the Next Payday

Don’t make any big purchase, particularly if it is not essential, while you are in debt. Use the borrowed money only for the purpose you took it for. Also, make it your top priority to pay back the loan after the paycheck.

  • Ensure that there is adequate money in the bank on the day the repayment is due.
  • Start an emergency funds account for the future so that you can use the money in case a situation comes up.

Other Repayment Strategies

  • The EPP or “Extended Payment Plan” – Ask your lender about the EPP in case you cannot repay the payday loan on time. After approval, your repayment period will be extended by many weeks, and that too without any penalty. This will give you critical time to get your finances in order. However, not all payday lenders will allow the EPP. Also, there are some restrictions on the plan.
  1. Only payday lenders who are members of the CFSA or the Community Financial Services Association of America can offer the EPP to their borrowers. Check to find whether your lender is a CFSA member.
  2. In states where the EPP governing provisions have been adopted, it is mandatory to offer this option. Go to the National Conference of State Legislatures website to find out the status of your state.
  3. If you have taken the payday loan from a CFSA-member payday business, you will have to furnish your request for the EPP at least a day before the repayment amount is due.
  4. You have to make the request at the office where it was issued, and will also have to sign an amendment of the original loan agreement. This new agreement will list out all the new terms of the EPP plan, including the new payment schedule.
  5. The Extended Payment Plan allows borrowers to pay off their loan in four equal payments.
  6. There are no fees for entering into the EPP. But lenders can charge an EPP fee and also accelerate payment for the balance remaining if you default.

Rolling Over the Loan

Payday loan rollovers aren’t allowed always. However, in some places, regional and local laws allow this. By rolling over your payday loan, you will have additional time to find the money to pay off your debt. But remember, there can be additional fees. Borrowers are limited to four loan rollovers, or the limits imposed by your state.

Get the Help of a Credit Counseling Agency

These agencies can help you find ways of repaying loans. There can be many strategies. They will help you explore multiple options, and even negotiate a settlement with your lender. Sometimes, these agencies can broker agreements with other creditors, if you have other loans too, so that their payments can be lowered till the time you have paid back your payday debt completely.

You can find a credit counseling agency close to you at the National Foundation for Credit Counseling website.

Managing the Payday Loan

  • Restrict the terms and amount of loan – A lower amount borrowed and for a shorter time can reduce your burden greatly. Here’s what you can do:
  • Limit the borrowed amount – Yes, you are perhaps in an emergency and need the funds. But try to borrow only what you need, and can pay back with the next paycheck.
  • Pay back the borrowed amount and the fees as quickly as you can. By rolling over the loan or delaying your due date, you will only add more debt. This is why many states have banned rolling over or have imposed limits on this.

Make Sure That the Deductions Are Authorized

It is rare, but sometimes, a few lenders make unauthorized deductions from the checking accounts of borrowers. Inform your credit union or bank if you think your lender is withdrawing money without your authorization. Show your signed loan agreement with the lender, and ask for the steps that can be taken to stop this.

Does Your State Allow Rate Caps?

17 states, plus the District of Columbia has rate caps in the United States presently. Many municipalities have their own laws too. So you cannot be charged more than the allowing limit in these states.

Contact the Bank Regulator in Your State

If you believe that your loan terms are unreasonable and you are having issues with the lender, you may also contact the banking and securities regulator of your state. You will find this information easily in the phone book or the internet. Also, find out whether the lender is authorized to do business in your area. Your loan is illegal if the business is not authorized.

Most payday lenders are valid businesses that offer a valuable service to the society. But there are a few you need to be careful about. Most importantly, however, you have to be careful about managing your money and paying back the debt in time. By doing this you will save money. It is good for the lender too, because the business then has the funds to make loans to others in emergencies or facing a financial crisis.

Apply for a quick payday loan with us.

Payday loans are small-dollar loans, usually between a few hundred dollars and $1000. The cash advance is made for a couple of weeks till the next payday. Since the amount and the term is less, a high majority of people have no problems in repaying the loan amount and also the fees involved and interest. But there will always be a few people who face problems in their repayments, just like any other type of loan.

There will obviously be consequences of not paying back any loan, not just a payday loan. After all, when you are taking credit, you are making a commitment of paying it back. It is important for the lender’s business that you pay it back. It is also important for the other debtors because if the lending business doesn’t have the funds, how will it offer cash to people who need a loan?

But what can be the consequences of not paying back a payday loan? Let us investigate.

1. First, admit the credit consequences:

Your credit score is likely to take a hit when you default on the loan, and don’t work out an alternative payment plan with your lender. If you default, the lending agency may sell this debt to a collection agency legally, though this may not happen always. The default may also be reported to the three most important credit bureaus.

Plus, if the default is sold to a debt collection agency, the agency may use aggressive collection methods to realize the payment. You may receive calls both at home and at work. Your family and even friends may receive calls for payment.

When your credit score goes down for the default, it may become very difficult for you to get another loan and credit card approvals, even when you finally manage to pay it back. That is because the credit bureaus will often keep the collection agencies report on your report for up to seven years.

2. You may be sued in a civil court:

When you default on the payday loan, the lending business may even sue you so that the overdue amount can be collected. Your property may be seized if the lending business gets a court judgment for the overdue loan amount. A law enforcement officer will help the lender to seize your property. It will then be sold off to realize the balance amount. Unlike a secured loan with a specific property, the judgment for a payday loan may involve any property you may have at the time when the judgment is passed. It may even involve any property you acquire later.

In many states, the judgment is for 10 years. Thus, when the payday lender gets a judgment against you, any property you acquire within these 10 years can be seized by this judgment, if you have still not paid back the loan.

Even though the payday lending agency may sue you in a civil court, but your failure to pay back the money is still not deemed as a crime. There are some collectors who threaten defaulters with criminal action, but you should know that you cannot be sent to jail, unless of course the court determines that you took the loan and never planned to pay it back intentionally. Contact a lawyer immediately if anyone threatens to arrest you for failing to pay back a payday loan.

3. There will be extra fees and interest:

You are likely to owe the lender even more money when you default. It goes up the longer you don’t pay back the loan. For continued repayment for a long time, even a loan amount as less as $250 can go up to $1,000 after a while.

In some states, there are rules on how much interest payday lending companies may charge from you. However, there are no such rules in other states. So the lending company is free to charge any fees and interests for nonpayment.

How to Handle the Unpaid Payday Loan

1. Know how payday lending works:

Payday lenders typically issue loans and a fee for it. If a borrower is not able to pay back the loan amount and the fees associated with it when it is due, many lenders will then add up a second fee to “renew” the cash advance made to the borrower and offer more time to make the repayment. The cash advance is for the short-term, so a borrower can go further into debt when he or she cannot pay back the increasing loan amount.

For instance, if you borrow $100, the fee is likely to be $25. So you have to pay back $125 within the next couple of weeks after borrowing. If you cannot pay this back within the stipulated time, the lender will have the option of renewing the loan for a couple of more weeks. A $25 fee will be added. The total amount thus goes up to $150. If you don’t repay for a full year, a $100 loan amount may become $600 in fees.

Your credit score is likely to get damaged if you don’t pay back the loan. It may become difficult for you to get a loan in the future when this happens. You may even have to deal with a collection agency.

2. Go for an “Extended Payment Plan” or EPP:

Act even before your repayment is due, if it seems that you may face problems in making the repayment. Don’t leave it for the last moment. There is a provision for you to apply for more time to make the repayment without the extra fees. This is the “Extended Payment Plan” or the EPP. You have to meet the following conditions to qualify,

The lending company has to be a member of the CFSA or the Consumer Financial Services Association of America.

You have to make the application for the EPP at the place where you received the loan, and this should be a day before the repayment is due. No less.

You will be required to sign an “amendment” for the loan to show the EPP.

You must also enroll for the EPP once in a year.

The CFSA website can tell you whether your payday lending company is a member of the Consumer Financial Services Association of America.

3. Pay back the loan as soon as you can:

Make the financial adjustments necessary to pay back the loan as soon as possible. Make it the top priority. In fact, if the lender allows, then you should pay it back even before the due date.

You may also consider borrowing the money from a family member or friend to pay back the payday loan.

If you have 600+ credit score, you have the option of taking out another loan, like a personal loan, for instance, to pay off the payday loan. Payday loans are great in an emergency because you can get the money more quickly, almost immediately. Bank loans take much longer. But once you have the payday loan, you are no more in an emergency. You have the time to make an alternative arrangement.

4. Get the help of a credit counselor:

Seek the help of a non-profit credit counseling agency if there is no other way for you to pay off the debt. The agency will help find your various options. The counselor may even negotiate with the lender and make suggestions based on your financial condition.

In case, you approach a credit counselor:

The counselor can secure a longer payment term for you. The person may even suggest that you file for bankruptcy.

But you may negotiate yourself too. It is often the better method because the lender knows you. Most payday lenders will be willing to help you in every possible way because they want the money returned. It doesn’t help anyone if you cannot repay and end up filing for bankruptcy.

5. Negotiating with your payday lender directly:

Often, payday lenders are keen to directly negotiate with you. When you are doing this, always make sure of the following –

Negotiate to arrive at new terms for the loan – ensure that it is in writing.

Record all the conversations you have with the lender, including those over the telephone or in person. Maintain records of all letters or emails you receive from the lending business.

6. File your complaint with the CFPB or the Consumer Financial Protection Bureau:

If you have reason to believe that the payday lending agency is acting illegally or if you are having problems with the lender, then you may file a complaint at the CFPB website or can also call (855) 411-2372. Your complaint can be submitted for these reasons –

If the lending business has charged interest or fees you did not know about.

If the lending agency has taken cash from your bank account without your permission, or has taken more money than you authorized.

If you have already paid off a part or the complete loan, but the lending company claims that you still owe money.

If you cannot make contact with your lender.

If you have asked the lender not to contact you at your place of work, but the lender still makes contact.

If the lending business contacts your coworkers, family or friends for the repayment.

7. File the complaint through a state agency:

In many US states, you may file a complaint against your payday lender. Visit this website, and then click on your state’s link to know whether you can do so in your state.


Q). Can the collection agency take you to court for not paying back the payday loan?

A). Yes, they can. It is also likely that the lender will win. However, you may avoid liability by recording any excessive contact and then presenting it to the court.

Q). Will the lender call my workplace if the loan is unpaid?

A). The lending business may contact your employer if your work phone number is listed. But if you didn’t list the number, and still the lender finds your place of employment and makes contact there, then this can be a case of harassment under some jurisdictions.

Q). Can the lending company refuse a new loan?

A). Yes, particularly if your old loan is still unpaid.

Q). Can the lender come after me even if the loan is more than 10 years old, and I have filed for Chapter 7 bankruptcy in the meantime?

A). No. Just inform the lender that you have already filed for bankruptcy. But you will need to show proof of this.

But once more, in a high majority of cases, a payday loan goes smoothly. Most people are able to pay back the loan on time without a problem. These are small-dollar loans for the short-term. It is thus not a problem. The cash is of great help in an emergency.

We hope this article helped you to know consequences of not paying off a Payday Loan and where to get help.

An emergency doesn’t come with a warning. It can happen anytime, and in fact, often tend to happen when you least expect them. Take for instance the weekend!

Almost everything is closed during the weekend – the banks, all conventional lending institutions. So what do you do if you suddenly need some money, and cannot afford to wait till Monday to apply? Even then, it is likely to take a few days before you will actually get that cash. If you are lucky, you will get it by the end of the next week. So do you approach your friends, family, or worse, your colleagues? This is surely embarrassing. Is there a way to avoid this?

A payday loan can be the right solution. There are many payday lending agencies across the United States that will offer you a quick-cash loan even during the weekend. The application and approval process is very easy and quick. You can apply online from the privacy of your home. No one has to know that you are a little short of cash. All you have to do is just submit some basic information. The processing and approval can happen within just a day. So you will have the money within just 24 hours. That is the fastest way you can get credit in the United States.

You Can Apply Anytime for the Quick Money During the Weekend

The websites, obviously, run 24 hours a day. Even the website you are reading currently. 24/7 our online application is ready to give you a loan. You can apply here for a quick payday loan.

So you can shoot off that application immediately – right now. This is so much more convenient than the banks, where you have to personally visit and stand in long queues, and of course, wait for them to open shop on Monday, by when it could be too late already.

A payday loan during the weekend can be a great help. We have all been there. Something can crop up suddenly, perhaps a forgotten bill or the car repair costing you more money than you originally thought. You never know what can happen. You cannot plan and budget for things that happen suddenly. Helplessness and an unending wait for the weekend to be over is certainly not a good feeling.

But you don’t have to worry. Now you can take a payday loan even during the weekend.

Weekend Payday Loans and Conventional Quick-Cash Loan

You need to know that there is one little difference between a weekend payday loan and the conventional payday loan you can get.

In a conventional payday loan, the money is credited directly into your bank account that you had provided while applying. Most payday lending companies will deposit the cash through ACH or an Automated Clearing House System. However, most ACH transactions cannot be cleared during the weekends or during holidays.

This means that, you can apply online anytime you want, but it is extremely unlikely that you will get the cash till the next business day. Automated Clearing House Systems require at least 1 business day for settling the transaction. It can be frustrating.

How a Direct Cash Payday Lending Company Works

A direct cash payday lending company works differently. As the name suggests, the money is paid to you as cash, directly. It does not go into your bank account. The processes and documentations are all the same, and it is equally secure. This process is even quicker than a conventional payday loan.

  • Just apply online or call up the business.
  • Fill out a short form – your name, address, email address, phone number, social security number, employment details, and your monthly income.
  • You need to be a citizen of the United States.
  • Mention the amount you want. It is usually between $300 and $1000.
  • The term, like your regular payday loan, is for a couple of weeks till the payday next month.

    Someone from the lending company will call you quickly and take it forward. Your application will be processed fast. You will then be asked to go to their office to collect the cash, or someone might drop in at your place with the money. Along with the money, you will have all proper documentation of the loan that needs to be signed.

    But make sure that you read everything carefully before signing, particularly the terms and conditions of the loan. The documentation should clearly mention the loan amount, the number of days for which you are taking the money, the fees, rate of interest, and anything else you have discussed with the lending business. The document should also include the address of the business, its website URL, email details, and phone number.

    Key Features of Your Weekend Payday Loan

  • You can get the money and use it in whatever way you want. The lender will never ask you why you require the cash. It could be for anything.
  • Just complete the application process by filling out the short form from your desktop or laptop computer or smartphone. Make sure that you provide all the information correctly. Don’t miss anything.
  • You will get the cash even if you have poor credit. Weekend payday lending businesses won’t check your credit history or credit score.
  • The lender won’t charge you any extra money for offering premium service, like keeping his office open during the weekend or giving you the money when nobody else would.
  • Further, the fee or interest charged won’t be more than what you have to pay if you took a regular payday loan. All other terms and conditions of the cash advance are also likely to be much the same. However, it is still good to go through the document carefully before you decide to take the loan.
  • Sometimes these cash advances are also referred to as “crisis loans”.
  • You don’t have to pledge an asset as collateral. These unsecured loans.
  • The loan is usually issued for a couple of weeks till the next payday.
  • The amount you can get is usually between a few hundred dollars and $2000. No more. So the advance is to solve your immediate cash crunch or make emergency payments. The loan is not to solve your long-term financial worries.
  • The amount you will actually get may, however, vary. It will depend on how much money you are making every month and your repayment capability.
  • These are some of the quickest and most hassle free loans you will get.
  • Though called weekend payday loans, but the fact is that, these loans are also available during the weekdays.

    You have worked hard throughout the week. The weekend is the time to relax and unwind so that you can put in good hours at work the next week. It is unfortunate if you have a sudden emergency during the weekend or just before that. You don’t deserve this.

    This emergency or a cash crunch will definitely ruin your weekend, and the worst part is that, you cannot do anything about it. You have to wait till the Monday, till the time the business opens to apply for that loan from a conventional lender. Then too, it is likely to take a few days, even if you have good credit. And if you have poor credit, then your application is almost sure to be denied.

    Don’t let any of this affect you. Get a payday loan when you want it, even during the weekend. Even with poor credit history. Even without collateral. The loan is just for a few days and the amount is just for a few hundred dollars. So it is never a big debt. You don’t have to remain in debt for several years. Make that emergency utility payment with your loan. Pay off the monthly rent to your landlord with the money. Make that urgent car repair so that you have the car ready for Monday. Take the money and use it in whatever way you want.

    Apply for a payday loan whenever you want even if its weekend

  • Many people are self-employed now, and the number is increasing every day. A lot of them are in traditional work, such as doctors, and lawyers. But there is also a new generation of self-employed people like accountants, software professionals and writers, for instance. So what happens to a self-employed person if he needs a loan, particularly if the person has poor credit?

    Traditionally, payday loans have been denied to such people because they do not have a stable source of income. The up and down cash flow was deemed as too uncertain. But that is changing. Many lenders are realizing that, just like others, self-employed people too need a cash advance, and they too cannot afford the time traditional lenders will take to process and approve the loan. In an emergency, a payday loan remains the only practical option for the self-employed people.

    Plus, banks have been traditionally unwilling to offer a loan to self-employed people, particularly if the person is in the first year of going independent. Many banks may regard working for yourself as a risk, even if you are making decent money, and are thus unwilling to offer a loan to self-employed people. To them, being self-employed is like being just a step away from becoming unemployed.

    The good news is, now you can get a payday loan, even if you are your own boss. You can be a contract worker or have your own business. It doesn’t matter. You have a far better chance of getting a payday loan now.

    Payday Loans for the Self-Employed

    It works in much the same way as a loan for people doing a traditional job. The advance is for a few weeks, just like it is for the employed, and the loan amount varies between $500 and $1000 usually. This emergency cash will cover you till the time you receive money from your client and repay your debt. It is a perfect solution.

    In fact, the lending agency may not even look at whether you are traditionally or self-employed. The lender will just see whether you have the ability to pay it back in time.

    Here is a good way of getting money quickly, even if you are self-employed.

    Are You Eligible for a Short-Term Payday Loan If You Are Self-Employed?

    Short term lending agencies are more flexible than banks and other traditional lenders. It is not mandatory that you have a regular full-time job. However, to get the approval, you do have to show regular income. You will be asked to provide a bank statement for the last 90 days. This works to your advantage because you can surely show income in 90 days, even if your clients did not pay you last month. Sometimes, the lending company may even ask for additional documents so that they can verify your income because as a self-employed, you obviously cannot furnish a pay slip.

    As mentioned earlier, the loan is usually between $500 and $1000. But you can take less than $500 too if you so want, and in some instances, payday lenders will even approve an advance of more than $1000. The term is usually for a few weeks. In some rare instances, however, you can ask for a longer term as well. There are many lenders that will agree with you to work out the repayment terms.

    Of course, how much loan money will be approved and the lending term is always going to be subjective. It may depend on how much you have earned in the last 90 days, and the policies of the payday lending business.

    Payday Loans for Business

    Often, a business too will be a little short of cash. Perhaps an urgent payment has come up, and you have to meet the commitment. Or maybe, you have to accept a consignment in exchange of money. Or perhaps, you have to carry out some minor repairs. A payday loan in perfect in these situations because you get the money quickly. The repayment period is short as well, so your business is not in debt for the long-term. But remember, these are small dollar loans, so you cannot make large investments or pay off another debt with the money you receive.

    You can get a payday loan for your business too, as long as the business is registered in the United States. You might have to furnish additional details of your business, such as your line of trade, and an income statement for the last three months, just like the loans issued to those who are self-employed.

    There was a time when business owners had to approach traditional lenders only for their credit requirements. Not anymore! Many payday lending companies too are now offering loans to businesses.

    According to a report published by the Federal Reserve in March, 7 percent of small businesses owners in 26 states of the country applied for a cash advance last year. This trend seems to be growing now. It was the maximum in Florida, as almost 18 percent of businesses there approached for a cash advance.

    Self-Certified Loans for the Self-Employed

    There are some self-employed people who are tempted to apply for a self-certified loan. In this, you don’t have to show proof of your income. There is no verification as well. As the name suggests, you just have to make a declaration that you earned X amount of money in Y time, which is usually a month or three months.

    These are the easiest loans to get, obviously, but you will make a huge mistake if you apply for these loans. That’s because, the risk is very high here. The interest and fees are very steep. Typically, self-certified loans are issued by loan sharks.

    Stay away from these loans. Go for a payday loan instead, as the terms are almost always friendlier for those who are self-employed or have their own business.

    Salient Features of Payday Loans for the Self-Employed

    1. You can borrow anything between $300 and $1000. In some rare instances, you can borrow even more.

    2. The term for these short-duration loans is usually for a maximum of three weeks. There can be penalties if you fail to repay on the due date. However, you can re-negotiate for an extension. Many lenders will agree because they want to help you repay the debt.

    3. There is a restriction on how much can be charged from you towards the interest and fees. Agencies are looking at this all the time. You can make a complaint if you believe you are being over-charged.

    4. You can approach a lender for a payday loan even if you have bad credit. This is not a factor. They are not going to carry out a credit check to approve the request.

    5. You can get the money usually within 1-2 business days, sometimes even on the same day. The money is deposited directly into your bank account.

    6. The application and approval process is easy, quick, and hassle-free.

    So you see, a payday loan for the self-employed works in much the same way as it works for those who are salaried. The lenders won’t overcharge just because you are not drawing a regular salary. It is often the only way for the self-employed to get a loan quickly when they are in urgent need of credit.

    Like it or not, our world runs on credit. We need a loan to buy a home, credit cards so that we can stretch our spending power, and also personal loans for a variety of requirements. But these traditional loans or credits are not always available. There are people who are simply not eligible. They may not be the practical option too when you need the money quickly, because traditional loans take time. A payday loan is an alternative, and is in fact, the most viable alternative, in many situations.

    Who are the people who need a payday loan? What are the situations when a payday loan is the right option for you? Let us find out.

    1. When The Current Credit Is Maxed Out

    Let us assume you have credit cards and have taken loans before. However, there can be credit card debt, which you are presently paying off, but because of circumstances, you have to max out your card. In such a situation, you won’t be eligible for more credit because off too much credit, income not being regular or sufficient, or poor credit history. You can consider taking a payday loan.

    The small-dollar cash advance will help you solve the immediate cash problem for a small fee. You can repay quickly. Since the amount is small, repayment is not a problem. You can manage the repayment along with your other credit repayments.

    2. You Are Not Eligible For Traditional Loans Because Of Bad Credit

    This is a common problem with a lot of people. Almost anyone can have bad credit, whether for the short-term or the long-term. Just a single default or missed payment can push you into the zone, and impact how the creditors will view your application. Perhaps you just forgot the due date. But that won’t be considered.

    With bad credit, most people will try out all their options, any form of credit available, including overdrafts. They may even approach their current bank to see whether the bank would extend a small cash advance. But sadly, if you have bad credit, and if you are suddenly facing an emergency and need some cash, then none of these creditors are going to help you. You need to approach a payday lender.

    You have just a few dollars more to repay with payday loans because the loan amount is less, and the duration is just for a few days. Repayment is easy for the vast majority of people. It’s the much needed cash when you need it, which matters the most.

    3. You Need The Money Because Your Car Broke Down Suddenly

    A payday loan is virtually the only kind of credit you can get really quickly, unless you have a credit card, can take an overdraft, or a personal loan where the money is credited fast, preferably on the same day. An emergency like the car breaking down can happen any time. They tend to happen when you least expect. You need to carry out immediate repairs because otherwise you cannot get to work.

    With payday lending, you can apply online. You just have to answer a few basic questions, and provide the vital information. With many lenders, you don’t even have to fax or send bank statements. You can complete the application in a few minutes. The approval process is equally quick. The money is transferred to your bank account directly. There is no other lending process that is so simple or so fast. Sometimes, you can get the money even on the same business day.

    4. You Are Joining A New Job

    There are people who are in a tight financial situation when they are changing the job, irrespective of how much the new job pays, or what they used to earn in the current position. Sometimes, it will take a while for the last pay from the existing job to arrive because the employer will have to settle everything. So what will you do in the meantime? Will there be enough money? It will be a while before you receive the money from the new job.

    With conventional personal loans, the minimum repayment period is one year, which of course is too long because your situation is just temporary. You don’t want to stay in debt for a full 12 months. If you do not have a credit card, you have to apply for one, and it will be a while before you get it. Also, with conventional credit, they will first call your employer. This doesn’t work for you anymore. Your new employer hardly knows you. So, your loan application is likely to be rejected.

    A payday loan works very well here. It’s just for a couple of weeks. You can pay back once you get the next paycheck. In the meantime, you will have the money to pay all those bills and meet your daily expenses.

    5. You Are Self-Employed And Need Money For An Emergency

    The problem with conventional loans is that, to get it, you must have a regular income or some form of stable employment. When you are applying, the creditor will usually ask you how you are employed, and you must also furnish the details of your employer. You must also mention the amount you earn every year. But the problem is, a lot of people are now self-employed, and this number is increasing every year.

    The requirements are stricter for those who are self-employed. You might be asked to provide your tax income statement. Often, the minimum income requirement will be higher than those who are employed and are drawing a salary.

    It is difficult for self-employed people to get a quick loan in an emergency as the extra documentation takes more time to process. In fact, the application time will also be longer because you must first organize all the documents. Self-employment can also be uncertain at times, because the money tends to come in fits and starts. It is rarely a stable flow.

    There are some payday lenders too that require you must have a stable income or full-time employment. But there are those that require you to make some sort of income. You need not make any other benefits. Plus, the application and processing is always much quicker. So a payday loan is always the more practical option for those who are self-employed and are in an emergency.

    6. You Have A Place And Need The Bond Money

    Unfortunately, the housing market is often not a renter’s paradise. For instance, you may have to fight it out with many other prospective renters for the properties you are interested in. Once you have found the perfect place, you have to find the bond money to secure it. You are lucky if you get the bond back from your previous property just in time, so you can hand it over for the new bond. But not everyone is so lucky. There can be a delay because you usually get back the money only once you have left the property, so it is unlikely that you will have the money in time.

    A payday loan can give you this money when you need it so that you can move into the new home. Budget correctly, and you should be able to able to manage your finances. It’s a debt you can live with, because it’s just for a few days. You can repay once the previous bond is released or after you get the next pay check.

    7. You Suddenly Have A Vet Bill

    A pet is surely a great addition to the family. But they will require extra care from time to time. Most people wouldn’t think twice about getting the best care for the pets. However sometimes, the financial situation does not allow this. What if the vet says your dog needs emergency treatment and you cannot come up with the few extra dollars immediately? You get paid only after two weeks, and the treatment cannot wait till then.

    Your credit card is already maxed out. There is no time to wait for the personal loan. Also, these loans are usually for a larger amount, money that you don’t need because it makes you fall into a bigger debt. A payday lender can give you the money quickly. It’s just for a short duration, and thus perfect for you in this situation.

    Is a Payday Loan Right for You?

    These are just a few instances where a payday loan might be the only practical option for most people. Please remember, there can be many other situations as well.

    The fact is that, a payday loan is a good option in most situations, which is why so many people in the United States are asking for this kind of loan. Conventional loans give you a lot more money that you may not need. You will stay in debt for a longer duration of time, and have to repay more. The application and processing time may take several days, even weeks.

    A payday loan, on the other hand, gives you just what you need to see you through till the next pay check arrives. You are never in debt for months. Repayment is easy because the amount is small. Most importantly, you get the money deposited directly into your bank account almost immediately.

    You will have the money when you need it. That is critical in an emergency.

    The payday loan industry has only been around for the last couple of decades, but its impact on the economy has been tremendous. In the US now, there are more payday lending businesses than McDonald’s restaurants. Millions across the country are taking these small-dollar loans.

    But it’s not just the United States where the payday loan industry is booming. It is booming in the United Kingdom, Canada, Australia, and in many other countries. In fact, in the UK, according to estimates, there is one payday lending shop for every seven banks. In Australia, more than a million people take these loans to fund their short-term cash shortfalls. While the statistics clearly prove how popular they are, there is a popular misconception that only the poor and the marginalized take these loans.

    Nothing could be further from the truth. The truth is that, many take these loans to improve their credit.

    Payday Loans for Improving Bad Credit

    Many payday lenders claim they often provide “bad credit solutions” to people who need money quickly. A sizeable chunk of the applicants are actually individuals with negative marks on their credit file. Even those who high-income people may have a poor credit rating and so, high-income earners might also find payday lending most useful.

    The fact is that, Americans with a high income may also have a cash shortfall, just like people in the low-income bracket. A poor credit score will make their life difficult, even though they are presently making good money. Sometimes, the credit rating agencies will take several years before they update their records, and so the poor rating may stick around for quite a long time. With poor credit, those with high-income will have limited access to finance. So they may be in a position where payday loans are the only option.

    Understanding It Better

    For example, let us assume that a person is making around $72,000 a year. Let us also assume that the person has a car, is paying mortgage, and has poor credit. Remember, high salary does not necessarily mean a good financial situation. A good chunk of the monthly earning will go away towards the car loan and mortgage. And if the person has maxed out his credit cards after a holiday, then there is a high chance that he will be short of cash at the end of the month.

    Where does the money come from if there is an emergency home repair to be made, or a car repair? A payday loan may be the only option. Remember, the banks or the other financial institutions will be unwilling to offer credit because of the poor credit score.

    Business & Investments

    The nature of wages earned by many high-earners is also often unreliable and inconsistent because they are self-employed. Their incomes or assets could also be tied up in investments. There can be shortcomings in business and personal finance because of the earnings is volatile. Many of them as a result need quick access to credit. Payday loan is the right solution because the money received is almost fast. There is very little documentation needed.

    For most loans, you will have to show a regular income or at least a stable income source so that the lender is confident that you will be able to repay your debt. It may be difficult to get a traditional loan if your assets and income is tied up in volatile investments. Often, people who are making money in this way, also find that their existing credit lines are maxed out. In this situation, a payday loan could be the only viable option left.

    A Payday Loan Is Useful For Businesses Too

    There are problems with business loans as well. Many businesses have limited access to finance because of fluctuating cash flow. It may also happen that the money is tied up in business assets. Some businessmen end up risking their personal finances for making business purchases. Short-term business financing could be the solution. Business payday loans could help them solve the crisis.

    With these loans, the applicants don’t have to meet the conventional requirements as needed by the traditional lenders and banks. Business payday loans are issued if the business holds a rental lease, earns above a specific revenue amount each month, and if the business is operating for a minimum time duration.

    With traditional business loans, the creditor will carry out extensive business and personal financial checks. This includes financial forecasts, credit checks, and details of how the money is going to be spent. With business payday loans, on the other hand, it is much easier, just like a personal payday loan. Many businesses that cannot get credit from a conventional source in spite of earning a lot of revenue approach these lenders.

    The Economy

    The global economy is never stable. It always goes through ups and downs, and so anything can happen anytime. It can be worse when there is turbulence. Many high-earners have felt the pinch after the global financial meltdown of 2008. The number of payday loans spiked in the United States after 2008. Many people were so desperate they even traded jewelry or other assets to get the all-important finance.

    In Australia, people have become more disciplined. The ING DIRECT Household Financial Wellbeing Index shows that people in the country are now saving more and spending less. In the US too, many more individuals are now trying to save as much as they can. But spending less is not good for the economy. It leads to lower sales and production cuts, which eventually slows down the market conditions.

    In spite of the increase in savings, people are still struggling between paychecks. Many homes are still using credit cards to pay for their expenses and the bills. Surveys have indicated that a couple of hundred dollars more is needed each week for these homes to be financially comfortable. More than 15 percent homes report they always feel the pinch, particularly in the last 10 days of the month.

    Using the credit card is one way of paying for the expenses between paydays. But with many individuals, the credit cards are already maxed out. Also, those with negative marks on their credit file may not even have credit cards. In this situation, a payday loan may be the only practical option left, even if you are earning a decent salary.

    People Who Take Payday Loans Are Not Always the Poor

    Those who take payday loans are often stereotyped as poor or marginalized people who have low income or cannot manage their finances efficiently. But the reality is, not only the poor, but decent earners take these loans too. They come from all over the United States from many sections of the society.

    A lot of restrictions have been imposed on payday lending already. Millions of Americans are taking these loans because there is an urgent need for them, but still, many people have been critical of payday lending. The lawmakers are planning new ones, even though there really is no alternative to this short-term cash loan.

    We propose a thorough investigation on the deep impact of imposing more restrictions on individual finance, and the economy at large before any further steps are taken.

    CNN came out with a report last year, which mentions the steep rise in the costs of raising a child. According to this report, the estimated expense on each child between birth and 18 years of age now stands at $227,000. This is 40 percent more than what it was a decade back. Of course, not just the cost of raising a child, the costs of almost everything has gone up steeply in the last few years. You are in trouble if your salary of earning hasn’t increased by this much at least.

    Unfortunately, that has not happened with a lot of Americans. They are thus very close to the poverty line, trying desperately to make the ends meet. They desperately look for money at the end of the month to pay off the bills and meet other commitments. Many don’t have a credit card, or even a bank account. Rarely will they get a loan, except for a payday cash advance. Payday loans are small-dollar loans, which they can repay next month, so it’s not a problem. They would be in real trouble without this help.

    Don’t let this happen to you. Yes, payday loans are there for you, but it’s always good to have more control of your life. Make a few changes – even the smallest lifestyle changes can give big benefits. Here are some money-saving tips that will help you manage your finances better. Your pocket won’t run dry. You can pay it back more easily, even if you take a payday loan with these practical money-saving tips.

    Be Smart With Your Shopping

    Make sure that you visit the store just once for your shopping. Going there again and again for an extra bar of soap or the loaf of bread you forgot to buy is going to cost you more money. You will waste gas and end up overspending. Prepare an extensive list of everything you need, and tick the items off after adding them to your cart. Take your time preparing the list, and check it once before you pay the bill.

    Also, go to the store without the kids. You can resist spontaneous buying more easily.

    It will also be a good idea to set a maximum budget for your shopping, grocery or otherwise. You will see, you will end up saving a lot of money this way. Finally, remember to shop early in the week when there is little crowd. A crowded store can make you stressful, which isn’t good for budget-conscious buyers.

    Use Discount Coupons and Reward Points

    Many stores issue discount coupons, and there are reward points too that accumulate with each purchase. You can redeem these points and coupons later to get good discounts. Always carry the coupons to the store. Check how many points you have, and the amount that can be struck off from the bill as discount.

    Many buyers fail to use their reward points. They will also forget the expiry date of the discount coupons, thus wasting them. You can save a lot of money if you are organized and a smart buyer.

    Don’t Purchase “Off the Shelf”

    Always do your research first before buying, particularly if you are thinking of buying something costly. Take your time even if you are really anxious about buying it.

    Browse the internet to find its lowest price, find out if a sale is coming up. Look at the retailer’s or manufacturer’s website to see whether you can find any coupons. Look for alternatives at a lesser price. With this approach, you may possibly spend hundreds of dollars in a year.

    Don’t do this for small purchases, because you will only end up spending a lot of money. Set a threshold price – say $50, for instance.

    Buy Secondhand

    You will be surprised how much money can be saved by buying secondhand. This may take some getting used to, especially if you love brand new things. But it’s worth it. You can buy a lot of stuff secondhand, and often, they are in perfect condition too. Two things you can buy secondhand are books and toys.

    Visit thrift stores and garage sales. You may even meet some of your neighbors too in these places. Many people are now buying secondhand to save money.

    Entertain at Home

    Everything is so costly now – a visit to the movie or eating out, for example. A day trip can be a disaster for your monthly budget.

    Find out ways to entertain the kids at home and keep them happy. A home movie, a story session, board games… with popcorn… you will spend quality time together, have a lot of fun… and save loads of money. You don’t necessarily have to spend money to make them happy. They want your love and company, and not your money.

    If you have to take them out, visit the parks in your neighborhood instead. Do some park shopping to settle on a couple of parks where they enjoy the most!

    Don’t Fly If You Can Drive

    There was a time when air travel was the default choice for most. But it has become so costly these days. Plus, there is also the hassle of security checks and the long waits. Plan a drive to the destination if you have to travel with a family, of course, if your destination is within a manageable distance. This will save you the cost of buying several airline tickets. You may rent a car if your family vehicle cannot carry the entire family. Or better still, take the bus or the train. That will save you even more money. Even the no-frills airlines will cost you more than a bus, train, or car trip.

    Stay at home-stays or hostels instead of hotels or resorts.

    Sell Your Home

    Of course, this is a more drastic measure, but one that will help you get rid of that mortgage. You are likely to have a lot of cash in your hand even after the mortgage is taken care of. A home, as it ages, costs more because of the constant repairs. A rented property might prove to be more cost-effective.

    Plan the Meals

    A casual visit to Burger King or McDonald’s can set you back financially. You are splurging if you visit these diners several times a month. It is going to ruin your health too. Plan meals at home instead! This is healthier and financially better. Plan your recipes. There is a lot of variety to choose from. Perhaps once a month you can eat out.

    A payday loan is there to help you for times when you are a little short of cash. But this cash advance is just to help you ride over the immediate emergency. It won’t serve your long-term financial worries. Try to increase your income, perhaps by starting a business on the side so that you have a second income stream. Save money wherever you can. Manage your money better. Plan for the long-term! In the meantime, solve your short-term worries by taking a payday loan.