Tag Archives: previous
Payday loans – what you need to know about payday loans.
When you couple this with the rising cost of everyday expenses like food, it isn’t hard to see how the budgets across America are stretched to breaking point. One of the key problems that people have today is they don’t know where to turn whenever disaster or emergency strikes.
The answer to this question more frequently than ever is that they are turning to payday loans. Almost 40% of Americans are less than two months away from bankruptcy. The savings rates in America are at an all-time low and many households don’t have any savings at all.
Quite the opposite, they are drowning in debt and their stock portfolios and property portfolios have lost an incredible amount of value. This is reflected in the type of customers which now approach payday loan companies to help in times of financial difficulty.
Many people think that they are generally people on the bottom rung of society’s ladder. This couldn’t be further from the truth. The vast majority of payday loan customers are middle-class Americans. 44% of them their own homes and 42% of them have a college education. They are predominantly under 45 and have a family to feed.
That means if a household loses an income provider, they must replace that income within eight weeks or face the real prospect of losing their home, their car and all their possessions. In order to try and prevent this fate befalling millions of Americans, payday loan companies have stepped into the breach.
They will lend money with no regard to your previous credit record and in fact your previous credit record and will not even be checked. In addition, the transaction is never reported to credit reference agencies.
The money they will forward to you is simple, fast and easy. After a two-minute application, typically made on a website, the money is forwarded to your checking account in say 24 hours upon acceptance within a couple of hours. The main conditions for acceptance are that you have a job, a checking account and are over 18 years of age.
Once the payday loans company has verified these simple facts, your money is deposited. Once you get the money, you agree a date with the payday loan company and the money is withdrawn dramatically from your checking account on the date on which you specify.
This normally coincides with your next pay cheque date. In most cases, the time limit for a repayment is around 14 days. This means that this type of loan isn’t available to remodelling your kitchen or buy new toys.
It is genuinely and specifically designed to help you in an emergency. If you have a problem and you need urgent cash with very few questions asked and no reference to your previous credit history, the ideal solution for you could be payday loans.
Exploring the various types of Interest Charges
The interest charge for your personal credit cards is figured by the current amount of your balance on your credit card account and the APR or Annual Percentage Rate you are being charged for. Credit card issuers tend to use one of several methods to determine your interest and/or finance charges. The end game of theses various types is not the same; so it is best to know the differences literally. The finance charge is the dollar amount you pay to use credit. The amount depends in part on your outstanding balance and the APR.
Credit card companies use one of several methods to calculate the outstanding balance. The method can make a big difference in the finance charge you’ll pay. Your outstanding balance may be calculated using the adjusted balance, previous balance (sometimes referred to as two-cycle), or the average daily balance as the reference point. Check your card agreements terms if new purchases and/or cash advances are also included or excluded as this varies from provider to provider.
The average daily balance is the most common calculation method for interest and or finance charge rates. Every morning usually in the billing period, the balance is updated with credits or refunds. With some credit card issuers, any new purchases are also added. When the end of the billing cycle comes around, daily balances are added and divided by the number of days in the billing cycle to arrive at the “average daily balance.”
The adjusted balance method is the most beneficial method for cardholders. Credits received during the current billing cycle are deducted from the balance at the end of the previous billing cycle. Cash Advances you may of received made during the period for the billing usually are not reflected on the total. Basically, if you pay your bill before the end of the billing cycle you don’t get stuck with finance charges.
With the previous or two-cycle balance method, the average daily balance is figured from two billing cycles rather than a single one. This tends to increase the finance charges one must usually pay. There is no grace period involved with this method and if you don’t pay the amount due in full, the charges may be made retroactive back to the time of the original purchase.
It is also important to note that many credit cards also carry a minimum finance charge. Regardless if your calculated finance charge is lower, you will still be required to pay this charge. However, if no purchases or cash advances have been made during the duration of the billing cycle, generally you will not be assessed and charges. Nevertheless it is generally wiser to check the particular card in question’s terms of service and fee schedule.