Voices in Finance » payday loans

Payday Loans – Good Or Bad? 5 Reasons For An Emergency Loan

Louise — Sat, 21 Aug 2010 13:40:14 +0000

The very phrase ‘payday loan’ strikes fear into the hearts of many, but are they really the scary, high-interest debt they are reputed to be?

In actual fact, payday loans can be useful in certain situations. I’ve compiled a list of the five most useful circumstances in which a payday loan can help.

Christmas. How many times have you made out your Christmas shopping list and realised you don’t have enough to cover it all? The solution: a small payday loan. With just one interest repayment you’re not going to be paying for Christmas long after the decorations have been taken down.
Auto Emergency. Do you always forget when your MOT is due, or your car tax needs renewing, only to remember at the last minute when it’s too late to save up the money? Again, a payday loan in this instance can be a lifesaver. A small loan should cover most likely car-related emergencies, and will not linger like the smell of a bad exhaust.
A holiday. I’m not saying you should pay for a holiday with a payday loan. But, if you want some spending money and you haven’t been able to save up – for example if you’ve gone for a last-minute late deal package holiday – then a payday loan will allow you to buy foreign currency, souvenirs and anything else you might require while you’re away.
Unexpected direct debit. If you have a direct debit set up with a company and it’s bounced back by your bank upon the first request, the company will usually request it again a few days later. This is where the payday loan comes in useful; applying for the loan a couple of days before the funds request will ensure the money is sitting in your bank waiting. The £25 or so you pay in loan fees will usually be much less than the charges applied by your bank for a second refused payment.
Emergency money. It’s impossible to foresee every little thing which could go wrong. Some people have an emergency savings account set up for contingencies, but many savings accounts penalize you by deducting interest if you withdraw too much or too frequently. If this is the case, the next time an emergency crops up, a payday loan could help you avoid a loss in interest on your account. If you have a high AER, the fees attached to a payday loan could be considerably lower than what you’d lose if you used your savings.

Although payday loans do indeed have their uses, they aren’t always the solution. Avoid getting one purely because you fancy a bit of a spending spree or feel like a fancy meal out. When all’s said and done, they are an emergency loan, and should be treated as such. With proper money management, most of the above scenarios can be covered without the need for a payday loan.

Author Bio

Louise has worked in the financial sector for many years. She currently works as a writer for Moneysupermarket, and writes financial articles for a number of other sites as well.

Various Types of 1000 Loans

J. Hamilton Fraser — Sun, 23 May 2010 23:53:54 +0000

When you are in a pinch and need a little financial help, be aware of loan vultures! Seeming desperate to a loan company is not a good thing. There are three types of quick $1000 personal loans that all all very different in terms of cost to you. Payday loans are very quick and the best option for someone with bad credit. Bank loans are good, however, they can be more difficult to qualify for and peer to peer loans are very unique and definitely worth looking into.

Payday loans do not require much verification from the borrower. They usually can be very pricey, but if you don’t have very good credit, they may be the only option. Typically they require some information like a paystub and a post-dated check. Keep in mind that they will cost much more in upfront fees and interest rates. Make sure that you are prepared for the higher costs of a payday loan.

The bank is a great way to get a personal loan. The best option is to use your bank. Most of the time the bank will need a lot of information, credit check and possibly a co-signer. Banks have a harder time loaning out a small amount because they consider them “higher risk.”

A peer to peer loan is quite new. This involves a lender that is just a business person, not a bank, that can actually bid for your loan. You can give your information to a company, then they will post what it is you are looking for, such as a $1000 loan, and then different people will choose whether they want to lend to you. They also have the option to lend $100 to your $1000 loan and then other people will be able to lend to you as well. The costs and interest rates are typically between the bank’s and the payday loan’s.

These different kinds of loans are all unique. Depending on your situation, really depends on what type of $1000 loan you require. Just make sure to check over all the details and “fine print.”

Taking Out a 1000 Loan with Bad Credit – What You Need To Be Aware Of

J. Hamilton Fraser — Mon, 10 May 2010 17:25:48 +0000

If you are looking at taking out a 1000 loan with bad credit, then there are a few things you need to look at to ensure that you don’t fall into a debt trap and worsen your financial situation. In this post we will go over a few of these ‘issues’, hopefully helping you to understand what you can do so you don’t fall into the trap.

First, let’s understand what the ‘financial trap’ is – this is were you end up having to take out more loans to pay off old loans, thus increasing your debt at each turn instead of helping you get out of debt. With 1000 loans, you are usually in a situation where you cannot get a regular bank loan, and you usually need the money fast. As such, you are usually left looking for a short term loan like a title loan or payday/cash advance loan. If this is the case, make sure you know how they work so you don’t get caught and in trouble.

Payday loans can be ok when used properly, but you have to use them how they were intended initially – as short-term, emergency cash financing that is to be paid off in 1 – 4 weeks. Anything other than this will increase the interest cost drastically and make it so you pay hundreds (and very possibly thousands) in fees, leaving you in the debt spiral. Remember, these loans must be paid in full by your next paycheck, so if you are going to need all the money from your next paycheck then don’t take out the loan – period. Yes, this requires some planning, and it can be hard to stare at your income/debt levels when you find yourself in these positions, but it is a must-do if you are in this situation. Failure to do so can cost you a ton of money.

1000 Payday Loan Options

J. Hamilton Fraser — Thu, 18 Feb 2010 17:19:47 +0000

When taking out a 1000 payday loan its important to remember that you have several different options that you need to consider before you make your decision as to which loan to take out. Basically, when looking at these options, you should evaluate each one of them in terms of 1) the total cost of the loan, and 2) accessibility of the loan. Below we will discuss three of the main options that you have when it comes to getting a 1000 loan:

First option – Traditional Payday Loan

A traditional payday loan is generally the first option that comes to people’s mind. The advantages of a payday loan for 1000 dollars are primarily related to the amount of time and effort required to secure the loan. These loans are very quick and easy to take out–all you need to do is write them a post-dated check and you will walk out with cash in hand. However, the costs of a payday loan are tremendous–much higher than any other option, and thus should only be used when you can’t get money from the other two options below.

The second option is taking out a 1000 personal loan from a family member or friend. This option is generally the cheapest option that you would have, and is thus generally recommend as the first option with a small loan. However, many times people do not look at the negatives–you have to work with family or friends in a potentially uncomfortable situation which could potentially change your relationship.

The third option is a fairly new, and creative, option–taking out the small personal loan via a peer-to-peer lending network, such as prosper.com. These networks are great in that they take out the bank from the equation, and allow regular Joe’s to lend money directly to the end consumer…you. The advantage of a peer to peer loan would be that the costs are less than a regular payday loan for 1000, and it can be very quick. However, you are left to the whims of the market and the people willing to lend you the money, making it so you aren’t guaranteed to get the money.

1000 cash advance loan

Overview Of A Cash Loan

J. Hamilton Fraser — Mon, 01 Feb 2010 03:34:52 +0000

Life is full of turns and twists that lead to various circumstances for us all. Each day we are forced beyond our control to spend more cash that does not fit into our budget. A cash loan seems nice when such circumstances arise. Unexpected emergencies, such as medical, car repairs, insurance, shut-off notices, and so on can force us to spend money. Yet, when there is no money available and times look tough, a payday advance comes in handy.

Cash loan overview

The financial markets today are lucrative. In the financial markets, money is available for everyone. The cash advance loans are designed to offer people with bad credit, no credit, and so on the ability to get fast cash when a crisis has come up. These advance lenders focus on offering fast money to people in need and the loans are based on the borrower’s job and pay scale. You can find payday centers on or off line.

Lenders who offer such financial credits set terms and conditions. Instant finances are often available in one hour, one day, two days, but rarely longer. In other words, you can get the money deposited into your bank account quickly.

Are you eligible?

The payday advances are designed to cover emergencies. You do not have to have collateral to apply for the advances. To qualify for the money you must have worked at your current job for six months or have steady income coming in every month. Most lenders prefer that you earn at least $1000 per month from your job or disability checks. The companies accept applicants who have lived at their resident for up to three months or longer.

If you applying in the United States, then you must reside in the United States and have an active bank account with deposit capabilities. Finally, if you are 18 years old and can provide a personal ID and Social Security Card to verify your identity, you may qualify for a cash loan.

Are Logbook Loans Any Better Than Cash Advances?

J. Hamilton Fraser — Fri, 15 Jan 2010 21:43:41 +0000

Find yourself without the money you need to get through the month and you can get into a situation where you need to make use of some rather dodgy lending agencies to tide you over. We have probably all heard of the payday cash advance and all the problems it causes to those who use it. With high interest rates and very short loan periods you end up paying back far more than you lend, and if you can’t repay on time you face large fees that make them even more expensive.

The major disadvantage of the payday loan is that the people who use them often end up taking out more loans to repay the ones they already have, which encourages them to get into more and more debt until a point at which there is no one else to borrow from. The end result is that you are incapable of paying any of them back and you end up bankrupt.

In the same vain as the payday type product there is the logbook loans UK, which fewer people have heard of because they are newer and a little harder to get hold of due to the fact that you need a car to use as security for the loan. With your car as collateral the lender has a type of insurance that they will get their money back so you can get access to more cash and you can take it out over a longer period of time. Again the interest rates are extremely high and the only people who would ever want to use them are those who can’t get cash anywhere else.

The other negative of this fast cash loan is that you are putting your vehicle on the line in order to get it, which means that the lender can turn up at your door and take possession of your car when you can’t repay your debts on time. It will then be sold at auction to raise the cash you owe and you’ll be left without your form of transport. This product is best left well alone if you value your financial freedom.