Payday Loan Video Warning
I put this video together on Youtube in hopes of reaching a younger audience. The young families are the folks who need financial education the most. If you know any young people who may not have the benefit of poor past experience with debt, please forward to them.
Saturday, June 9, 2007
Saturday, May 19, 2007
CFA Warning - Payday Loans Online
The Consumer Federation of America put out a warning to users of payday loans to be extremely careful with payday loans online. We'll have more information in a later online payday loan blog report.
The gist of the warning about online payday loan service stems from a survery of 100 online payday loan companies.
CFA found that rates can be as high as $30 per $100 borrowed and must be repaid or refinanced by the the borrowers next payday. If a payday is in two weeks, a $500 loan costs $150 and $650 will be taken out of the borrowers checking account on payday.
Take a seat and really think about whether the $500 now, is worth $150 bucks in order to get it. You really need to have a financial emergency to justify the expense of the online payday loan.
The gist of the warning about online payday loan service stems from a survery of 100 online payday loan companies.
CFA found that rates can be as high as $30 per $100 borrowed and must be repaid or refinanced by the the borrowers next payday. If a payday is in two weeks, a $500 loan costs $150 and $650 will be taken out of the borrowers checking account on payday.
Take a seat and really think about whether the $500 now, is worth $150 bucks in order to get it. You really need to have a financial emergency to justify the expense of the online payday loan.
Wednesday, May 16, 2007
Payday Cash Advance Loans Interest Can Exceed Two Thousand Percent!
Payday Cash Advance Loans Interest Can Exceed Two Thousand Percent!
The San Francisco Chronicle ran a payday cash advance loans warning article March 23, 2007. The article discusses the results of a survey by the California Reinvestment Coalition which indicates that many California consumers are receiving misleading information from payday lenders regarding interest rate charges on payday cash advance loans.
Interest rates for payday lenders came in at a 460% average for payday cash advance loans. Charisse Ma Lebron, a coalition spokeswoman, was quoted as saying, California's laws are too lenient, considering that 1.5 million households use this service every year."
According to The San Francisco Chronicle: Mark Thomson, a spokesman for California Financial Service Providers, the trade group for payday lenders, acknowledged that many lenders aren't complying with state disclosure requirements. But he said things are improving. "State regulators have been doing exams (of payday lenders) for about a year and have done about one-third of lenders' locations," Thomson said. "In most cases, the licensees respond that they can fix the problem. In cases where they don't comply, we support strong enforcement by the regulators."
Avoid payday cash advance loans, without knowing the fees and annual percentage rates that you are going to be paying.Always remember rolling existing payday loans can be a disaster financially. Please always borrow responsibly.
If you take a payday cash advance loan, please only borrow what you will be able to pay back when you get paid from your job and still have money to get through the month.
The San Francisco Chronicle ran a payday cash advance loans warning article March 23, 2007. The article discusses the results of a survey by the California Reinvestment Coalition which indicates that many California consumers are receiving misleading information from payday lenders regarding interest rate charges on payday cash advance loans.
Interest rates for payday lenders came in at a 460% average for payday cash advance loans. Charisse Ma Lebron, a coalition spokeswoman, was quoted as saying, California's laws are too lenient, considering that 1.5 million households use this service every year."
According to The San Francisco Chronicle: Mark Thomson, a spokesman for California Financial Service Providers, the trade group for payday lenders, acknowledged that many lenders aren't complying with state disclosure requirements. But he said things are improving. "State regulators have been doing exams (of payday lenders) for about a year and have done about one-third of lenders' locations," Thomson said. "In most cases, the licensees respond that they can fix the problem. In cases where they don't comply, we support strong enforcement by the regulators."
Avoid payday cash advance loans, without knowing the fees and annual percentage rates that you are going to be paying.Always remember rolling existing payday loans can be a disaster financially. Please always borrow responsibly.
If you take a payday cash advance loan, please only borrow what you will be able to pay back when you get paid from your job and still have money to get through the month.
Tuesday, May 15, 2007
Want to get Rich? Stay Away From Debt!
There are many ways to make money and prosper financially. But when you are just getting your financial foundation solidified, there are a few core items like avoiding quick cash loans that need to be addressed so you prosper financially down the road.
1. Stay OUT of debt. You can't grow your financial net worth if you continue to owe.
2. Save something every month and buy solid stocks that pay dividends.
3. Diversify the stocks by industry and always reinvest the dividends and interest.
4. Do not waiver. The key is the consistency.
5. Consider a precious metal such as gold under the assumption that the dollar will continue to weaken.
These are very basic rules for getting your finances under control.
Never, ever, ever take payday loans, without knowing the APR and fees that you are going to be paying. Always remember that rolling existing payday loans can be a disaster financially.
Please always borrow payroll cash online responsibly. If you take a payday loan online, please only borrow what you will be able to pay back when you get paid from your job and still have money to get through the month.
1. Stay OUT of debt. You can't grow your financial net worth if you continue to owe.
2. Save something every month and buy solid stocks that pay dividends.
3. Diversify the stocks by industry and always reinvest the dividends and interest.
4. Do not waiver. The key is the consistency.
5. Consider a precious metal such as gold under the assumption that the dollar will continue to weaken.
These are very basic rules for getting your finances under control.
Never, ever, ever take payday loans, without knowing the APR and fees that you are going to be paying. Always remember that rolling existing payday loans can be a disaster financially.
Please always borrow payroll cash online responsibly. If you take a payday loan online, please only borrow what you will be able to pay back when you get paid from your job and still have money to get through the month.
Saturday, May 12, 2007
Default Payday Loans - Always THE Last resort
Fast Default Payday Loans - When You Should Wait and When You Should Borrow
A fast cash loan should be an option used as a last resort to avoid a financial emergency. With its interest rates, only borrow as much cash as you can pay back.
This might be one of the hardest parts. When you're applying for a cash loan, and you know you'll be out of diapers before your paycheck comes, it's so tempting to add a few bucks of spending cash to the credit line.
Stop yourself right there. Ask yourself a few questions.
Do I need this money right now?
Will I spend the money immediately on something that is necessary?
Can I do without the money by conserving my resources?
Will I actually use the money on this excuse, or will I end up blowing it on something frivolous?
Can you wait for the extra money? You probably can. It's nice to have everything you want without waiting for it, but it will save you a lot of money if you just hold off until payday.
Will you spend this money immediately? If you want to advance an extra thirty bucks so you'll have enough to for gas on Friday, you should reconsider. If you know for certain that you'll need it, fill your tank on the way home. Don't carry the extra cash in your pocket, because you're likely to spend it on something else.
Can you find another way to get by? Most of us are surprised by what we can accomplish when we're strapped for cash. Use only half the soap for laundry loads. Buy the cheap hotdogs for supper tomorrow, and reheat last night's meal for tonight. But don't use credit.
The rising cost of living can force you sometimes to overburden your pocket with loans. It may solve financial issues for the time but it delays the inevitable.
Are you really going to spend the money on what you think you're borrowing it for? Cash is hard to hold on to. You know your habits. If you've blown the grocery money at a restaurant before, then don't borrow it.
Don't let the late penalties kill you.
You've followed good sense and only borrowed what you needed. You skimped by on as little as possible, and now your pantry and gas tank are empty. You want to stop at the bank, cash your check, and buy a few things before going to the loan company to take care of your advance.
Here's where you'll make your biggest mistake. When you have your paycheck, go straight out and pay off that loan...all of it. The groceries can wait. The movie rentals can wait. Your only concern should be to get out of debt. And Fast.
A fast cash loan should be an option used as a last resort to avoid a financial emergency. With its interest rates, only borrow as much cash as you can pay back.
This might be one of the hardest parts. When you're applying for a cash loan, and you know you'll be out of diapers before your paycheck comes, it's so tempting to add a few bucks of spending cash to the credit line.
Stop yourself right there. Ask yourself a few questions.
Do I need this money right now?
Will I spend the money immediately on something that is necessary?
Can I do without the money by conserving my resources?
Will I actually use the money on this excuse, or will I end up blowing it on something frivolous?
Can you wait for the extra money? You probably can. It's nice to have everything you want without waiting for it, but it will save you a lot of money if you just hold off until payday.
Will you spend this money immediately? If you want to advance an extra thirty bucks so you'll have enough to for gas on Friday, you should reconsider. If you know for certain that you'll need it, fill your tank on the way home. Don't carry the extra cash in your pocket, because you're likely to spend it on something else.
Can you find another way to get by? Most of us are surprised by what we can accomplish when we're strapped for cash. Use only half the soap for laundry loads. Buy the cheap hotdogs for supper tomorrow, and reheat last night's meal for tonight. But don't use credit.
The rising cost of living can force you sometimes to overburden your pocket with loans. It may solve financial issues for the time but it delays the inevitable.
Are you really going to spend the money on what you think you're borrowing it for? Cash is hard to hold on to. You know your habits. If you've blown the grocery money at a restaurant before, then don't borrow it.
Don't let the late penalties kill you.
You've followed good sense and only borrowed what you needed. You skimped by on as little as possible, and now your pantry and gas tank are empty. You want to stop at the bank, cash your check, and buy a few things before going to the loan company to take care of your advance.
Here's where you'll make your biggest mistake. When you have your paycheck, go straight out and pay off that loan...all of it. The groceries can wait. The movie rentals can wait. Your only concern should be to get out of debt. And Fast.
Friday, May 11, 2007
Online Payday Loan: More Than What You Bargained For?
I found a very insightful article on the web by Central Illinois Proud which is exactly what we've been discussing here. If you live in Peoria, Illinois you may have seen it.
The article titled Payday Loans: More Than What You Bargained For? quotes Bonnie Bakin of the Better Business Bureau as saying, "The problem with many of the payday loan concepts is people take the money and find out that they can't pay it back in a timely manner".
Key points come from the article are the following:
They suggest shopping around for the best and lowest interest rates.
Be sure to find out what your responsibilities are in the transaction.
Of course, always read your contract carefully. If there's something in it you don't comprehend, don't sign it until the lender explains it to you.
Don't take out the loan if you can't pay it back because the payday lender can take money out of your paycheck, take you to court... and ultimately, you could end up in jail.
Always be sure you can pay back your loan if you are going to get a payday advance
The article titled Payday Loans: More Than What You Bargained For? quotes Bonnie Bakin of the Better Business Bureau as saying, "The problem with many of the payday loan concepts is people take the money and find out that they can't pay it back in a timely manner".
Key points come from the article are the following:
They suggest shopping around for the best and lowest interest rates.
Be sure to find out what your responsibilities are in the transaction.
Of course, always read your contract carefully. If there's something in it you don't comprehend, don't sign it until the lender explains it to you.
Don't take out the loan if you can't pay it back because the payday lender can take money out of your paycheck, take you to court... and ultimately, you could end up in jail.
Always be sure you can pay back your loan if you are going to get a payday advance
Saturday, May 5, 2007
Study: Poor drawn to payday loans
On April 20, 2007 The Washington Times ran a UPI story discussing a recent Canadian payday loan usage study. The study helps confirm my original thought which is that most young families don't have the options or education about finances to avoid payday loans. Young families truly have no where to turn for credit when traditional options have run out. They also don't have the education to be able to analyze the negative consequences of high rate compound interest.
The article is pasted below.
Study: Poor drawn to payday loans
Low-income Canadian families are twice as likely to use "payday loans" as those with more financing options, a government report said Friday. Statistics Canada said families with $500 or less in the bank were 2.6 times more likely to have used payday loans than those with between $2,000 and $8,000 -- even though payday loans have high, often undisclosed fees and interest-rate charges of 335 percent to, in some cases, 650 percent, the report said.The short-term loans require no credit check and typically involve amounts of $100 to $1,000.Almost half the families who used payday loans reported they had no one to turn to if they faced financial difficulty, said the report, published in the April issue of Perspectives on Labor and Income. Thirty-two percent of non-payday-loan users said they had no one to turn to when they are strapped. Some people use payday loans "because they live in a community that is underserved by mainstream financial institutions," the report said.Without payday loans, some consumers might be led "to less desirable credit options such as loansharking and organized crime," the report said.
Clearly there are many tough issues surrounding access to credit for lower income citizens. The major financial institutions have left a credit void for these folks. Payday lenders are helping fill that void. While the situation isn't ideal given the expensive financing, no fax payday loan no employment verifition are available.
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