Tag Archives: payday loan
Payday Loans and a Nightmare Waiting to Happen
It all starts out nice enough until you pick up the mail and notice a letter from your bank. Apparently due to a simple math error in your checkbook register, you’ve bounced check. Now a bounced check in previous years, would simply have resulted in your bank, requesting that you make good as quickly as possible, along with correlative with modest service fee.
In today’s hyper inflated maximum income driven world however, almost nothing is as bad as a bounced check situation. An attempt to maximize profits, banks have become increasingly more willing to sacrifice good business relationships with long-term customers for short-term gain. Understand we’re not talking about the person who habitually writes bad checks but the average Joe or Jane that makes a simple math mistake or error in judgment.
How many of us have at one time or another made a deposit in the bank and immediately pay our bills without deposit? This can sometimes be a problem depending on how the bank balances its own box. Although many banks acknowledge or post deposits before handling withdraws, some do the opposite in an attempt to maximize overdraft fees.
Some banks will even bounce your check, and then take out their bounced check fees that result in yet another bounced check in your account and another fee etc. Don’t let this happen to you. Use the link below and get a list of payday loan service companies that will give you your first loan interest free.
Smart consumers will check with their bank to understand their overdraft and banking procedures. If you find your account was opened at a bank that posts checks written on your account before your deposits, find another bank fast!
If you are financially solid enough to qualify for overdraft protection, this is probably the best insurance you have available to keep from paying high overdraft fees. Speaking of those fees, instead of the modest service charges banks at one time charged for accidental overdrafts, fees now range from a low of $25 to as much as $40 or more depending on the bank. Should you bounce a check, it’s quite normal for bank fees to be more than $100 especially if you can’t immediately.
Payday loan companies have been accused of charging extremely high interest rates by the government and so-called consumer groups. The fact remains however that your local bank may be charging interest in the form of huge fees that is actually a lot higher than a payday loan service.
So remember that while consumer groups and the government claim to be the consumers friend, they’re not saying much about those huge fees charged by big banking institutions. While they feel safe bullying small payday loan service companies they are apparently unwilling to take up the much larger problem and deal with the large banking corporations. After all, the real reason for saying anything is for publicity and media attention. [smile]
What is a payday loan
A payday loan has many names. Some call it a cash advance loan. Some call it a check advance loan. Another name is a post-dated check loan. Still others call it a deferred-deposit check loan. The Federal Trade Commission in the U.S. calls it “costly cash”. No matter what you call it, its the same thing: a small (usually $50-$500) short-term loan with high interest. A payday loan (also called a paycheck advance or payday advance) is a small, short-term loan that is intended to cover a borrower’s expenses until his or her next payday.
Have you ever been burdened with an unexpected expense, like a big car repair bill? How have you handled it? Do you use your credit card and pay for it, including interest, over a period of time? But perhaps you dont have a credit card. Or maybe youre one of the millions of people who carry too much debt, and have already “maxed out” your credit card. Do you have friends to borrow from? Most of us dont like to do that and most friends dont like that, either. So what do you do? Well, you could get a payday loan.
What are the benefits of payday loans? Lets see:
You wont have to go through the hassle of a credit check.
You can apply in person, on the phone or on the Internet.
The process takes less than 20 minutes.
The loan proceeds are automatically deposited into your bank account within 24 hours.
Its affordable, at least immediately you dont have any up-front costs.
Its discreet nobody else is involved.
Its secure your financial information isnt shared with others.
Ok, that makes sense. Those are enough reasons to get rid of the stress of being short of cash. Its a “quick fix”. You can cover the shortage, and get on with your life. And youll be able to pay it back next payday, right? So youve solved your problem.
These companies are in business to “help” those in dire financial need. They offer these loans to people who cant find the money they need anywhere else. Lets profile one company who offers payday loans as part of their overall financial services business Money Mart.
Money Mart was created as an alternative to banks. Their hours would extend beyond banking hours, and theyd situate themselves in more accessible locations than banks. They could cash checks when banks were closed, and people wouldnt have to travel very far for their services. They must have been on the right track because now, they have 1,700 locations in Canada, the U.S. and the U.K.
A typical Money Mart customer is an average working person, 32 years old (82% of customers are under the age of 45) and employed, with an annual income around the national average. These customers go to Money Mart because of their fast service, their convenient locations, and their extended operating hours. The founders of Money Mart were right their original ideas still hold true today.
Since adding payday cash advances to their financial services, theyve carved themselves a very nice niche in the industry. But theyre definitely not the only choice. You can now find at least one, and usually several, payday loan centers in every community