Tuesday, September 13, 2011

Sunday payday loans

Payday loan is a short term loans for bad credit that is normally taken by a person in between his paydays so that he can meet certain urgent and unforeseen expenses. The borrower is supposed to return the loan amount along with the lender's charges when he/she gets his next paycheck. If due to some reason, the borrower is not able to return the loan as originally stipulated, it can be rolled over till the next paycheck by paying extra charges and an additional interest. This carries on till the loan amount is fully repaid.

Cash advance can be obtained from many companies that specialize in making payday loan advances. Besides these companies, banks and other financial institutions also provide same day payday loan facility. A payday loan can also be obtained if you apply online as there are many lenders operating on the Internet nowadays.

Most people make use of traditional installment loans as source of instant cash in times of emergencies. However, such emergency cash problems do not only occur during regular business days and many times people might need loans on the weekends. Only a few companies offer weekend loans to their customers. However, payday loans offered on weekends provide less amount of cash as compared to those which are offered regular weekdays.

Though the cash offered may be less, but this too can be of great help to you during an emergency. If you need money till eleven in the night on Saturday then you need not wait till Monday for getting financial relief. Even the traditional services offered by banks normally are not available in weekends so you cannot try there too. In order to get such weekend loans you need to search for companies which provide such special monetary support on weekends to people.

The lenders of weekend payday loans will lend money to their customers on Friday, Saturday and Sunday payday loans. The major difference between traditional weekday and weekend loans is days on which they are availed. No matter you apply for these loans during working weeks or weekends their procedures remain the same. However, lending terms of companies offering weekend payday loans vary from company to company.

The money gets sanctioned within twenty-four hours after you fill and submit your application form. The time taken for loan to get approved depends on essential checks performed by lenders. In addition, lenders may ask borrowers to provide their bank details, salary skip, residential proof and age proof. Once all these details are provided lenders approve loans instantly. It's very easy to get a fast easy payday loan as the requirements are not very stringent. Basically, you need to prove that you are employed and you have a steady source of income. You should also be an American citizen, at least 18 years old and have a checking account in a bank. Moreover, you should be earning at least £1000 per month to avail the payday loan facility.
Hence, you need to be having necessary qualifications for applying to such loans as unexpected emergencies may arise at any time.

Tuesday, September 06, 2011

Big banks offer payday loans by another name

They're marketed under a different name, but a handful of major banks already let customers borrow against their paychecks for a fee. And there are signs the option may soon become more widely available.

Banks say their loans are intended for emergencies and they are quick to distance themselves from the payday lending industry. But consumer advocates say these direct deposit loans — as banks prefer to call them — bear the same predatory trademarks as the payday loans commonly found in low-income neighborhoods.

Specifically: Fees that amount to triple-digit interest rates, short repayment periods and the potential to ensnare customers in a cycle of debt.

With a traditional payday loans for teenagers, for example, a customer might pay $16 to borrow $100. If the loan is due in two weeks, that translates into an annual interest rate of 417 percent.

Since the borrowers who use payday loans are often struggling to get by, it's common for them to seek another loan by the time of their next paycheck. Critics say this creates a cycle where borrowers continually fork over fees to stay afloat.

Banks say their direct deposit loans are different because they come with safeguards to prevent such over reliance.

Wells Fargo, for example, notes customers can only borrow up to half their direct deposit amount or $500, whichever is less.

Its fees are cheaper too, at $7.50 for every $100 borrowed — although that still amounts to a 261 percent annualized interest rate over the typical pay cycle. The amount of the advance and the fee are automatically deducted from the next direct deposit.

Wells Fargo admits that it's an expensive form of credit intended only for short term use. But customers can max out their loans continually for up to six months before they're cut off. Then after a one-month "cooling off" period, they can resume taking advances.

U.S. Bank, which has more than 3,000 branches mostly in the Midwest and West, and Fifth Third Bank, which operates 1,300 branches in the Midwest and South, offer loans with similar terms and restrictions.

"When you're allowed to be indebted for six billing cycles in a row, that's not a short-term loan," says Uriah King, vice president for state policy at the Center for Responsible Lending, an advocacy group based in North Carolina. "They call them short-term loans, but that's just not how they're used. And banks know that."

Even if customers can only borrow half the amount of their next direct deposit, that can be a significant setback if they're living paycheck to paycheck, King says. They'll likely need to take another loan to continue covering living expenses.

Payday lenders cashing in on credit crunch

When we’re struggling to make ends meet, it is easy to turn to other methods of funding. This week, Debt Management Today explores the growing use of payday loans, and the effect they are having on the debt management sector as a whole.

With the Payday loans with a bankruptcy industry worth an estimated £1.2 billion, according to the Mail Online, and growing fast, is it any wonder that increasing numbers of clients entering debt management plans have previously turned to payday loans in an attempt to get some quick cash?

Bev Budsworth, Managing Director at The Business Debt Advisor explained further: “We have seen a definite increase in debtors who have taken out payday loans – I think there has been formidable growth in recent times.

“We get a lot of people referred to us because they have been trying to get loans to pay off their payday loans but have been declined.

“People are not always cognizant of the fact that they need help and are just desperate to get hold of money as the payday loan creditor has their debit card and will take the money out at the end of the week or month, leaving them without enough money to live on.”

Vance Parsons, Director of Euro Debt, agreed: “With the rising cost of food, fuel and utility bills against stagnant wage inflation and reduced income due to a struggling jobs market, the wait for pay day can seem never-ending for families already under financial pressure. As a consequence, more and more people are being tempted by the offer of payday loans.”

This type of loan can seem very attractive because of the lack of credit checks, and for those heavily in debt the idea of paying back only a small amount at a time can appear to be the ideal situation. However, the cost can easily add up.

Vance Parsons continued: “We know that almost a quarter of people that come to us for help do so because they have got themselves into a spiral of debt, robbing Peter to pay Paul. As interest mounts, the debt spiral deepens. Payday loans just add to this misery as all too quickly the cost of the loan increases, making it difficult to withdraw from the agreement.”

A lot of debt management companies come across individuals with more than one payday loan. Bevy Buds worth clarified: “More frequently, customers we help with debt management plans have at least two to three payday loans – however one of our clients has 13.”

Saturday, September 03, 2011

Short Term Loans - Monetary Solution for Shortfall Of Funds

When the end of month is near, are the current month's salary is already exhausted on various day to day tasks? What would a salaried class person do at such a time, if urgency comes up? Without thinking much, he can opt for short term loans. In the case of this financial service, the borrower can gather monetary solutions for shortfall of funds.

You would not get entangled into any kind of unnecessary filling and faxing of papers, because of the automatic mode of transfer of money. There is no documentation hassle in this process of money lending.

Short term loans offer cash that falls in the range of £80 to £1500, and comes to you according to your financial ability and settlement stability. You are required to pay the sanctioned money back in the comfortable repayment time span of 1 to 30 days. The borrower can use this money in putting an end to small needs until he gets his next pay cheque. One can make the payment of credit card installments, can get small house modifications done, can send the car for repair job, can meet medical and educational expenses and so on.

One can apply by filling a simple, no obligation and free of cost online application form, which would be given on the website of the money lenders. From the comfort of your home or office, fill in your personal details into it. As and when the process of verification is over, you would get a smooth approval. The approved sum would get transferred into your bank account within the least possible span.

The borrower is not required to give any credit confirmation. This happens because the process of credit check is not conducted. Practically the applications from all the debts and defaults would get an approval without delay.