Payday Loans in the US – Differences from one State to Another

Payday loans in the US are fairly simple and require no more than an ID card, your bank account information, and proof that you have some sort of income. In less than 24 hours you can get the amount of money that you’ve asked for.

Certain lenders have different processes and different prices. However, what happens if you are not satisfied with the amount of money you can borrow in your state? What if you wish to get money from a different state?

Payday Loan Place Window Graphics

All US states have different processes in which you can borrow money and not only. The sum of money that you can borrow is different as well – and it does not matter if they are payday loans, installment loans or mortgages.

With the things above being said, let’s take a look at some terms that you should understand before you get a payday loan in another state.

APR

APR stands for “annual percentage rate,” and it consists of a percentage that, hypothetically, you will need to pay in one year. For example, if you borrow $700 and the APR is 300%, in one year you will need to pay $2100 back. It’s just a simple calculation. The APR is the way that the lender makes money off borrowers.

The APR is different from one state to another, but generally speaking, the APR works on the basis “the smaller the amount of money borrowed, the smaller the APR is.”

Most states work on an APR of 450%, but the percentage can vary. If you are thinking of borrowing money from a lender form another state, be sure to check the APR first.

Term

One thing that you should worry about is the term. This refers to the amount of time in which you should return the money back to the lender. The term can be from 10 to 30 days, depending on the lender and the state in which the lender resides.

The trick here is to choose a lender with a very big term in which you can return the money. Some borrowers have difficulties when trying to return money back in such a short amount of time.

Rollover

If you really experience troubles with returning the money, you are allowed to do a rollover. The rollover consists in extending the time period in which you can return the money, although this involves some additional fees as well. There is a limited time of rollovers in each state.

Also, be aware that some states don’t have a rollover. In this case, you will need to return the money in the exact amount of time you have established with your lender.

Legal actions

If you fail to pay the money even after a rollover and the term has expired, you can find yourself in a difficult spot. Calls upon calls from the lender asking you for the money can occur – and in a worst-case scenario, a debt collector could show up at your front door with police included.

To conclude the above information, getting a payday loan is tricky. However, if you have the nerves and courage, you can borrow money from a lender which resides in another state.

Image credits to: Taber Andrew Bain  on Flickr

How To Take Out A Payday Loan Successfully

Payday loans are usually associated with very negative connotations, and quite understandably so. At best they charge you 1,000% APR interest and at worst the money can be demanded back unexpectedly, even if it cannot be afforded. However, in theory, they offer necessary money for a short period of time and, if paid off immediately, the interest need not be a problem. Yet it is those who need money the most that turn to the payday loans, and for that reason they are more often than not in a position to pay it back. This then leaves them overwhelmed with the huge interest. This ongoing cycle is precisely why quick cash loans are thought of so badly and yet they are still available.

 

Title Loans Desoto, TX
image credits to: Jake Smith – https://flic.kr/p/g6us6L

 

It is important when borrowing money of any sort to be clear of the payback deadline and the interest rates, especially if they are subject to change. If you are to take out a payday loan in particular, here are some pieces of advice to consider:

  • Only do it when you have to and if you know that you are getting money coming through

This sounds like a very obvious thing to say considering that the loans are called ‘payday loans’, however, if you do opt for a quick cash loan it is advisable that you are able to pay it back, in full, immediately. If you are unable to do so, avoid them. You would be better off to apply for a credit card or longer-term loan even if this means the process to access the money is longer.

  • Make paying it back a priority, as soon as the interest hits this is going to be more and more difficult

It is very easy once granted money to get you out of a tricky situation for the relief to alleviate the urgency with which you needed to borrow it. With a payday loan in particular this is a very dangerous situation to be in. If forgotten about or ignored for any amount of time the interest could accumulate so much so that you find yourself unable to pay it. This is precisely how the loan sharks make their money and why they have got such a bad reputation.

  • Only use it for an emergency

This is somewhat expected as for someone to need money with such urgency to use a pay day loan it is understood that it is necessary. However, just how necessary is it? Is it something that is so urgent paying extravagant levels of interest is worth it, or could there be another solution with less drastic implications? It is useful to have other options nonetheless. Borrowing money from a friend or relative can be much safer; you could even offer them interest that will be cheaper than the interest charged on short-term loans. Borrowing from a credit union is an alternative to a credit card if you have difficulty applying for one of those.

  • Ask for help

Once in trouble with finances many people often close down communications, especially with the negativity surrounding quick cash loans, many applicants are often ashamed that they have had to go down that route. So if you do end up with no other choice but to take out a payday loan, be sure to let someone know beforehand. Then, if the payments are overwhelming and you are unable to keep up with how much you owe you have someone aware of your situation so its consequences won’t seem so severe. The Financial Ombudsman offers payday loan help which can be hugely beneficial in outlining your rights as a borrower. This may not excuse you from paying back the amount you owe but may lead to a solution that makes repaying the money feasible.

 

So if you do consider taking out a payday loan it is vital to prioritise paying it back regardless of other outgoings and this is something that should be worked out before you even apply for the loan in the first place. Financial problems are one of the easiest to escalate so keeping on top of payments is absolutely crucial, especially when interest rates are this high. If you do have problems with overflowing debts however, there are people that can help so long as advice is sought in time.

Four Common Payday Loan Repayment Problems and How to Avoid Them

Many of us have found ourselves running a little too short of cash and have turned to payday loans as a means of obtaining enough money to tide ourselves over until payday.

payday loan

 

Whilst this is a practical way to borrow for a short period of time, usually a week to a month, some borrowers have experienced problems repaying their payday loan debts.

For whatever reason you’ve encountered a problem, taking a backseat approach most certainly isn’t the answer and you’re advised to seat yourself behind the proverbial wheel, grasp it firmly with your right hand, take the stick shift in your left, apply the clutch and accelerator and head straight for a solution.

Here are four of the most common problems that borrowers have experienced with payday loan repayments and how to avoid and/or resolve them.

1. Borrowing too much

Borrowing too much, not necessarily more than you can afford to repay but rather more than you should have borrowed, is a common problem that many people have experienced.

To avoid this common problem, create a budget so that you know how much you need to borrow and how much you can afford to repay.

It’s tempting to borrow as much as the lender is willing to lend you, though you must bear in mind that you have to repay the debt and that the more money you borrow the more interest will be incurred as a result.

If you realise that you have borrowed more than you should, contact the lender and ask about making a lump sum repayment as this could reduce the total interest that will be incurred and next time create a budget!

 

2. Paying too interest

Like borrowing too much, paying more interest than you should have usually occurs because the borrower has failed to do his/her homework and there’s nothing that can be done about it – this time.

Next time, however, shop around for a payday loan provider that offers a competitive APR (Annual Percentage Rate) and bear in mind that loan calculators should be used as guides only.

 

3. You can’t make a loan repayment on time

Finding oneself unable to make a repayment on time is a problem that affects many borrowers, and not only payday loan borrowers, though there’s often a solution available.

Most lenders are reasonably flexible and you can discuss your situation with them in order to resolve the problem; moreover, payday loans can be deferred but you must realise that this will incur extra interest charges.

Whilst they won’t usually accept a lengthy delay, if there’s a valid reason for you being unable to make a repayment on the scheduled date you might be able to negotiate a later repayment date in some cases without incurring penalties.

 

4. You can’t repay your debt

Being unable to repay your payday loan debt can result in problems if you don’t address the situation immediately, i.e. as soon as you realise you’re going to have a problem repaying your payday loan debt.

Check to see if the payday loan provider you borrowed from is a member of the Consumer Credit Trade Association (CCTA), the Consumer Finance Association (CFA) or the Finance and Leasing Association (FLA), as the customer charter they’ve signed requires them to deal with cases of financial hardship reasonably and sympathetically.

If you can’t repay your debt you might also like to consider entering into a debt management plan – look for free assistance from a free debt advice organisation – as this might require the lender to freeze the interest on your repayments, though bear in mind that this could affect your ability to borrow again in the future.

Payday loans are a great way to tide yourself over for a short period of time but you need to

a) shop around for a suitable lender like CashSorted,

b) shop around for a competitive APR and

c) understand the risks of being unable to meet your repayment commitments on time.

What’s more, the moment you realise you’re going to experience difficulties meeting your repayment commitments, contact your lender and look for a solution to the problem – the longer you leave it the more difficult the situation will be to resolve.

 

Photo credits: Stuart Miles – FreeDigitalPhotos.Net

Top 3 Common Reasons People Apply for Payday Loans

 

One of the easiest ways to borrow money from a lender is through payday loans. It is considered as a “short-term” loan and carries a high interest rate but because approval is quick and there is less hassle when applying for one, many people who find themselves out of cash before payday tend to seek out these kinds of loan from both online and local lenders. Here are some of the most common reason for applying for payday loans.

Top 3 Common Reasons People Apply for Payday Loans

Simplicity and Affordability – with payday loans, even those in the low income bracket can apply for one. All that is indeed are minimum documentation procedures and banking operation.

Credit History is Irrelevant – with other loan procedures, you have to wait for checking and validating of your credit history, but with payday loans, you can get approval on your loan without going in to the long process of checking everything about you.

Quick and Easy – Customers are willing to pay for commission when they apply for payday loan because it is quick and easy to get approved and to get your much needed money. This is one of the best solutions for people who find themselves in a financial emergency just before payday and the time of getting the money is of vital importance.

 

Fast Cash Payday Loans Information

Today, in a world of a reduced job marketplace, tall interest charges, and insolvency all over the place, it is still simple to get engrossed in declarations like fast cash, no upfront fees, and no credit forms. These words do it sound like all of our monetary problems abruptly have a fast fix. Payday loans use these every words to attract people and provide them a fast and simple answer to their cash problem. Even though these programs do grasp true to their confrontations, they certainly can provide you fast money, they are not at all an enduring answer to a expectantly temporary condition.

Basically, payday loans are way for a debtor to get their paycheck earlier so as to pay their expenditures. The debtor can either be show up on a payday lending store to accept the loan or they could just submit an application online through a lending company website and get up to $1500. In a lot of cases, the debtor should show a copy of a check, employer details, bank details, together with their Social Security number. If deal with online, the loan will be straight placed in their account. A week or two will then pass by and it will be moment for the debtor to reimburse the loan. Nevertheless, such a condition does not turn out penny for penny. Over the loan total, the debtor will as well need to pay a big interest amount of 15 to 30 percent intended for that 2-week loan due. That goes together with 390% to 780% of a yearly percentage rate. They will as well need to pay a loan payment which is usually about $15 for each $100 loaned out.

On the current internet compelled world, most of the payday loans are almost certainly applied for and administered online. A lot of companies like cash net USA, personal cash advance, and personal money store do it quick, easy, and available to refuge your outlays when you need money badly. Not just do they assure to acquire you the money you want, but they promise to do it in just a couple of seconds. A lot of people these days are appealed to the idea, as all the things they want is just accessible for them with just a click away. Consequently, firms that work entirely on the internet and with quick results will truly plea to such debtors.

In addition to getting their paycheck earlier by means of a payday loan, a cash early payment is one more fast cash alternative for unanticipated costs or when you abruptly discover yourself devoid of a constructive balance in your bank account. The major alteration between a cash early payment and a payday loan is a cash early payment is a loan that is taken out on a person’s credit card or their route of credit.

Facts about Payday Loan

This type of loan is only available to people who are employed. This means that people who are receiving a monthly salary can avail payday loan. Most of us termed this as a cash advance. There are times that we are having difficulty situations wherein our budget is being challenged. Situations like excess bills, increased necessities, educational needs of our children and other important things that require payment. Earning a minimum wage is not sufficient to meet our needs.

Most especially to those single parents who are supporting their children without the aid of other people. At times like this will lead to something that will persuade us to lend. Credit cards are the most common source of financial assistance for people. However, most of this is suffering from the interest which is brought by the bank. There are private lending corporations that also offers payday loan. All they have to do is request for list of requirements need for the approval of the loan. Most of their requirements may include: income tax return, pay slip, certification of employment and other pertinent documents that can support their application.

Most of this type of loan is considered as unsecured credit and the amount of loan must be paid by the loaner at the next payday. For the processing of application, other lending firm may have their own list of requirements that are available for non-regular employees. Other may require their client to secure a post-dated check amounting the total sum of money borrowed and including the interests. There is time that this type of loan is not advantageous especially when the client who wishes to lend applied for financial assistance which is higher than their salary.

It is very important for you to consider things before deciding to apply for this type of loan. You should understand the terms applied for lending. You can discuss this concern to the creditor and to make it more reasonable, you can look for other lending firm that has lower interest rate. You must carefully assess your needs. Do not loan money that is beyond your limitations. Loan a total amount of money that covers your necessities and consider this as the last option.

You can borrow money from your friends and colleagues to avoid financial problems in the future. But if you still consider this type of loan, you should be faithful in paying to avoid legal concerns and increasing debt from interests. You have to be honest enough by submitting all the requirements because most of lending corporation is investigating their clients before approving their loan application because there are many cases where people who applied for loan with fake documents are denied.