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Very few people, including the media houses, were betting on the Republican candidate winning the vote. But the election results surprised them all. Donald Trump is now the new president-elect of the United States. Every new president comes in with his own beliefs and policies. So what is he likely to do for the payday loan industry and lending business in general? Let us find out.

Consumer Lending Could See Big Changes

While on the road, Trump had said many times that he is going to cut lending regulation and make it easier for both businesses and the people. This will surely be a big relief for the many payday businesses that offer these short-term loans, and about time too, as many of them have been winding up off late, unable to cope with all the regulations that have been passed in recent times, and the pressures that are often quite unjust.

In the meantime, consumers across the country have been flocking to payday lenders for the quick cash relief they need in an emergency. For instance, last year, people in the state of Alabama took more than 2 million payday loans. It’s an urgent requirement in the Mississippi Delta, and in many other parts of the country as well. So it is clear that there is a need for payday lending and a huge demand for it. read more

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Many professionals, including communists and a notary public in California, and an attorney in the US state of Missouri, are defending payday lending, even as the industry is under threat from the lawmakers in Washington and other critics. The common complaint is that, payday lending leads to a debt trap. However, there are others who are convinced that these small-dollar loans are the only option for a vast majority of people in the United States, particularly those who have little savings.

The Case in California

A prominent notary public in South Carolina has questioned why every time something actually works for the little guy, there are government bureaucrats who will try to take it away? Cranford T. Rigell wonders if the government understands that there are people out there with real needs, and sometimes these people require help.

He was referring to the payday loan industry, which is increasingly under threat because of the ever increasing government legislation and stricter regulations. At least one columnist in a major California magazine has supported Cranford. read more

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Let us be frank. It’s always best to have an emergency fund for all those times when you may need some extra cash suddenly. Life gives us unexpected moments. Even small amounts such as $500 or $1000 could help us immensely. But the reality is, very few people can maintain an emergency fund, because they are busy meeting their everyday expenses, and saving for the future.

So what do you do if you suddenly have to make a payment, but don’t have the resources? You can always take a payday loan or a cash advance loan. These short-term loans will give you immediate respite. You pay back only after the next payday. These loans are easy, quick and convenient.

But before applying for your payday loan, do consider all your options.

Consider the following points before taking your cash advance loan.

1. Are you ready to take financial responsibility?

When you are taking a loan, whether it is for the short or long-term, you are making a financial commitment to pay it back. Are you ready for this? Up to this point, you may have led your life in a certain way where there was no commitment to make big payments apart from your utility bills. But now, once you take the loan, you will have a creditor in your life that needs to be paid back. So you might have to make a few curtailments to save money. Cut the coat according to the size. read more

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The payday loan industry has often been blamed for not looking at the best interests of their customers. Reality check – nothing could be further from the truth. There really is no alternative to these short-term loans, though in recent times, a few alternative plans have come up all over the United States. Most of them have however failed miserably. In contrast, the payday loan business remains a billion dollar industry, serving millions of customers throughout the country.

Here’s proof that there can be no alternative to payday loans

LendUp, a firm from the United States that was offering an alternative to payday lending has been slapped a fine of $6.3 billion after it was discovered that the business was violating several laws between the years 2012 and 2014. It includes a fine of $1.8 million by the CFPB or the Consumer Financial Protection Bureau as well. The California Department of Business Oversight has also imposed a fine of $100,000.

The Accusations Against LendUp and Why Payday Lenders Are Better: read more

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As many as 14 states in the country and also the District of Columbia have prohibited payday lending. These states have passed legislation imposing tough terms and limits on payday lending. The US federal government has stepped in too. The Consumer Financial Protection Bureau (CFPB) has proposed regulations in June 2016. These regulations are going to come into practice from 2018.

However, the ground reality is that, there are few options for people who actually need the money.

Reality in the Mississippi Delta

If you travel through Highway 61, you will come across small towns and the fertile farmlands of the Mississippi Delta. There are many fast-food joints, gas stations, discount malls, and several stores that offer quick cash. There’s almost a constant flow of people coming and going to these stores, trying to get cash, and keeping up with the repayments. Most of them won’t get the money they need from a regular bank.

In Clarksdale, for instance, a majority black-town, one in three live in poverty, and this is the only kind of banking available. But payday lending isn’t just restricted to black Americans. You will see plenty of whites, Asians, and Hispanics too across the country. Most of them come from middle to lower-middle class neighborhoods. read more

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Read why a short term loan is better sometimes when you only need a small amount of money to take care of a small problem in life.

A loan or debt isn’t necessarily a bad thing. Think of all those things you can achieve in life if you had just a few dollars more – all those small happiness’s, little delights. You might have to wait for many years if you don’t take the loan. Why wait? You know you are going to pay it back anyway. Then there can be emergencies for which you might suddenly have the need for some extra cash.

So don’t worry about debt. Ask for the extra money you want. Just make sure that you have a stable job and a regular source of income. There is nothing to worry if you do.

The world moves on debt. Countries take loans, businesses ask for debt to finance projects. So why you should you and me worry needlessly?

What Type of Loan Should You Take

There are two types of debt: short-term, and long-term. Which is the better option?

Long-term debts are mainly for big investments such as a home mortgage. For most other requirements, people usually go for short-term debt. read more

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In recent times US is seeing an increase in women applying for payday loans which is very surprising and shows that lots of women in US are now taking responsibility of running a family.

A few years back, it was believed that colored people, Hispanics, and Asians, and those from the economically weaker sections of the society were more likely to take a payday loan, irrespective of their location in the United States. But extensive studies carried out revealed something else. It was discovered that most of the borrowers are white and females. Most borrowers are between the age of 25 and 44 years. That was quite a discovery as it broke many myths about the kind of people taking these loans.

And now, there is increasing evidence to show that the number of women asking for a quick cash loan is actually on the rise. Studies have also revealed that this is probably not just a temporary thing. More and more women are likely to ask for quick cash. Not just that, women are also applying for more cash each time they are applying. read more

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In this article learn about what is the payday loan extended payment plan and how you can avail it.

Payday loans are short-term loans, where you are expected to pay back the amount due on receiving the next month’s pay check. That is, you must pay back in 2-3 weeks time. Most people do this and stay in the right side of the law, and qualify for another loan in time. But sometimes, even those who have the best repayment history can face a temporary situation where they aren’t able to pay back on the due day.

So what do you do then? If you cannot pay back the payday loan on time, then there is no immediate worry for you. There won’t be an upcoming onslaught of debt collection calls. That’s because, there’s something called the “Extended Payment Plan”. Thanks to this, there won’t be any high fees and bank account debits as well.

Protection for Consumers

If the lending agency is a member of the CFSA (Community Financial Services Association of America), they cannot force you to repay the amount. No coercion practices are allowed. The lending company must give you time till the next four paydays to repay the amount due. No extra fees can also be charged for this. All CFSA member agencies should carry the CFSA logo in their websites. It should also be displayed in their office, if they have a physical presence. So look for the blue oval logo to be sure that the agency is a member of the CFSA. Be sure, as not all agencies are members of the CFSA. read more

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If you are thinking of taking a payday loan, first, you have to know the states in the US where you can take it legally. That’s because, these quick-cash loans are allowed in 36 states, not all of them. Also, the law regarding the maximum number of loans you can take in a year also differs from one state to another. There are other regulations too that you must know. So it is essential to know the law, before you proceed to accept the loan.

A payday loan offers the much needed respite to all those who are in urgent need of cash. Yes, this is not a long-term solution, but it is best suited to those who are unable to pay their utility bills, must carry out urgent car repairs, or have to pay for some medical expenses suddenly. The processing and approval is very quick. It can happen within 24-72 hours of your application. Even those with poor credit or no credit history can get the loan, as the lending agencies don’t check credit records. There are hardly any paperwork and hassles as well. read more

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People who are born between the early 1980s and early 2000s are often referred to as the “Millennials”, Generation Y or the Millennial Generation – and they are turning to Payday Loans in huge numbers.

A new study now reveals that 42% of the millennials have turned to an alternative financial service, like payday loans. In fact, in the last 5 years, 28% of millennials who have at least college education have taken a payday loan. It also reports that 6% other millennials without college education is seeking these loans. And this number seems to be increasing too. They also discovered that 30% of them were overdrawing their checking accounts. The college educated millennials were found to be between the age of 23 and 35 years according to the results of the study.

The extensive study was carried out by the Global Financial Literacy Excellence Center at George Washington University and PwC jointly. It was titled “Millennials and Financial Literacy (pdf file)”.

Detailed analysis of the study revealed that millennials were struggling to deal with their personal finances, and turning to payday loans as this offered immediate relief. For instance, there was this person from Queens, New York, aged 31, who wanted to open a second jewellery store but had little cash in hand. He turned to a local quick cash provider as it was difficult to get a bank loan. read more

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