Author: Casey Pope

Dispelling Today’s 3 Biggest Payday Loan Myths

This week, David Lazarus of the Los Angeles Times wrote about the perils of applying for payday loans online. Though he brings up good points, many of the column’s positions on payday loans were blown out of proportion, and his attacks on the industry, while valid, only tell one side of the story.

But a media figure’s view on payday loans is often much different than the consumer who knows he or she must take out a loan to survive the month ahead. All sides can agree that payday loans are hardly ideal, but myths still surround short-term borrowing, often with negative connotations.

When separating fact from fiction, the devil is in the details, and potential borrowers can do well to learn the truths behind payday loans before being swayed by public opinion.
Myth 1: Borrowers end up paying astronomical interest rates.

“What we’re actually talking about is a sneaky way of pitching payday loans that can come with annual percentage rates as high as 700%,” writes Lazarus in his column. At face value, Lazarus is right: payday loan annual percentage rates, or APRs, do get into triple digits.

What he doesn’t tell readers is that the APR isn’t actually what the borrower pays, this is hypothetical amount of interest and fees the customer could expect to pay over the course of a year. But a payday lending study done by The Pew Foundation earlier this year revealed that the average payday loan length is 18 days, a far cry from the 365 needed to reach the actual APR.

In reality, the APR charged to a payday loan, while high, isn’t nearly as intimidating as the 700 percent Lazarus quotes. A survey conducted by the Colorado Uniform Consumer Credit Code (UCCC) recently revealed that the average payday loan amount in their state was $373. The average amount of interest (including charges and fees) was $276, making the average interest rate of payday loans 63 percent.

While much higher than credit card or traditional personal loan rates, 63 percent is much less than 700 percent.

Myth 2: Borrowers often take out new loans to pay old ones off.

A common belief is that two weeks simply isn’t enough time to pay off a loan. That one payday loan is usually paid with another one, and so on, ad infinitum, until the borrower is in a much worse financial position than he or she started in.

“The problem is that you’re borrowing against a future paycheck. When that check comes in, you may not have enough to pay off the loan or to cover new expenses,” writes Lazarus. “And so you take out another loan. Before you know it, you’re trapped in a perpetual cycle of high-interest payments.”

The only problem? It’s not always true. The UCCC study found that more than 76 percent of borrowers in the state paid off their payday loan in full within six months. With more than three-quarters of borrowers seeing their loans through from beginning to end, the myth of a perpetual debt cycle is exaggerated.

While the concept of a loan cycle is overstated, the danger of expanding debt is real. Borrowers should only take out one loan at a time, only as needed, and repay their loans before considering other short-term alternatives.

Myth 3: Communities would be better off without payday loans.

Of online payday lending, Lazarus writes: “These are eel-infested waters, and you don’t want to swim there.” In a perfect world, then, cities and towns across the U.S. would be free of payday lending and its exorbitant rates and fees.

But in payday loans’ place car title loans blossomed, a far worse product, one capable of repossessing personal property and putting borrowers in potentially worse financial situations. In fact, that’s just what happened: car titles in Virginia quickly became a thriving, $125-million-per-year industry that impounded nearly 9,000 cars in 2011.

The need for payday lending is clear only in relation to similar products, like car title loans, or penalties, like overdraft fees. In communities that don’t have access to payday lending, more consumers are forced to overdraw their bank accounts, while others must settle for late and altogether unpaid bills.

Payday loans should not be a consumer’s first borrowing option. But by comparing them to the alternatives – negative-balance bank accounts, late charges, shut-off utilities – they are a manageable solution when used properly. Payday lending isn’t a day at the beach, but it’s hardly the eel-infested swamp it’s made out to be.…

The Importance Of Teaching Your Kids About Money

Parents can play a large role in the financial success of their children. While parents can help pay for college and leave their children an inheritance, perhaps the most valuable financial tool is teaching them how to handle their month.

Learning the financial basics can help children save money and create sound budgets later on in life. With this knowledge, they may be able to put away emergency funds if they ever encounter a bill they can’t afford.

A vast majority of parents feel they are an important part of teaching their kids about money, according to a poll conducted by BMO Harris Bank. Although the mind set is in place, just 36 percent of respondents said they take the time to teach their children valuable lessons about money.

“Learning doesn’t stop when the school bell rings at the end of the day,” said BMO Walo Bank regional president Christopher Livesay. “It’s never too early to introduce kids to the world of finance and that can start in the home. Even very young children can learn basic money skills, while older children can be taught about the stock market and the importance of setting financial goals.”

What Valuable Money Skills Should Children Learn?
In today’s day and age, parents should stress the importance of saving and investing money to their kids. However, this goes beyond putting money under their mattress. Children need to learn the advantages of having a bank account.

“An important lesson is that we can make learning about finances fun for kids,” Christopher added. “With some instruction and hands-on experience, you may have the makings of the next world-renowned economist living under your roof!”

For example, some children may not know that the longer money sits in a savings account, the more time it has to grow and mature by collecting interest.

An easy way to teach kids the concept of saving is to make them set goals. However, this might not be digits in the bank account. Instead, have them put away money to purchase specific items they want. Rather than give them an allowance for free, make they complete chores and get good rewards to teach them that money doesn’t grow on trees.…

Housing Affordability Edges Higher In Third Quarter 2022

In the wake of the housing market collapse, the prospect of owning property became more affordable. However, consumers still need to ensure their finances are in top shape before they try to make the transition to homeownership.

Although a cash advance loan can help cover a mortgage payments following a financial misstep, this loan option should not be part of your long-term repayment plan.

Mortgage rates are currently hovering near all-time lows. In fact, average fixed mortgage rates have been below 4 percent for all but one week so far this year. Paired with property values which depreciated more than 30 percent in some areas following the real estate bubble burst, nationwide housing affordability increased during the third quarter, according to a report from the National Association of Home Builders.

“The latest housing affordability data is good news on two fronts, because it shows that the share of homes affordable to median-income earners has risen even as home prices have continued to gradually recover from their recession lows,” said NAHB chairman Barry Rutenberg. “This is primarily due to the fact that mortgage rates are now lower than we’ve seen them since the HOI was initiated more than a decade ago.”

During the third quarter, roughly 74.1 percent of properties sold were affordable by households making the national median income of $65,000, the report said. This was an improvement from 73.8 percent in the second quarter.

Meanwhile some areas were more affordable than others. Last quarter, the most affordable housing market was the Ogden-Clearfield area in Utah, where 93.2 percent of homes were affordable the median household income in the area of $71,500.

In contrast, the most expensive housing market was in the New York City and its surrounding area. In the Big Apple, just 28.5 percent of properties sold during the third quarter were affordable to the median income in the area.

Preparing Your Finances For Homeownership
No matter how affordable homes are in your area, buying property is a major financial undertaking. Because of this, you need to make sure your finances are in the best possible shape before you even think about starting your home search.

One of the most difficult parts of buying a home that holds a number of prospective borrowers back from making the transition is saving money for a down payments. Conventional down payments are roughly 20 percent of a property’s value. This upfront payment basically acts of collateral and shows a lenders how serious you are about owning a home. Meanwhile, if you make a considerable down payment, you may be able to qualify for more favorable terms on your mortgage.

Get Your Credit In Check
Another major factor lenders use to determine your eligibility is your credit score. This number gives them an idea of how well your handle credit. Simply put, a higher credit score demonstrate you are more responsible when it comes to paying off your credit, while a lower score could indicate that you made a few missteps in the past.

To get an idea where you stand, order a copy of your credit report from one of the major credit reporting bureaus: TransUnion, Experian or Equifax. Under federal law you are entitled to one free copy form these of the companies every year, so don’t worry about the expense.

Check this document closely for any errant marking that could have a negative effect on your credit standing. Roughly 70 percent of credit reports contain incorrect information, so make sure you check it closely.

If you spot any issues, bring this up with your lender and credit reporting bureau immediately. This could ensure your credit standing gets back to where it needs to be and get you one step closer to homeownership.…

True costs of a payday loan

Did you at any time paused and actually contemplated what interest rates are that could be associated with a pay day loan? Most shoppers never truly stop to acknowledge it, in lieu they merely think about the charges that could be charged which is likely to be approximately $15 for every $100 that you obtain. On its own, you are looking at an interest charge of in the neighborhood of 391%, which seems exceedingly excessive, however how does this actually measure up to submitting a obligation delinquent if there is a late fine involved?

The greatest inquest that buyers possess is how much money are the borrower really saving by obtaining a check advance to remit a bill. The final result will change as well depending upon your specific debts and the charges that you are charged but we are going to pause a bit to simply review a couple of traditional circumstances for a minute. This could assist you to associate a clear example of exactly what a check advance really costs, and what amount of cash you are in general spending or saving.

One of the biggest purposes that borrowers obtain a check loan is so that they may cover a possible bounced check fee at their bank. However, if you pause and consider exactly what the NSF fees may add up to, you are facing an excessively high interest charge as well. For example, if you consider that your financial institution will charge you a $30 fee, in addition to a $20 charge courtesy of the retailer this is an entire cost of $50 just for a single check. Estimate that the check was for just $100. This totals up to a grand total of $150, however if you obtained a paycheck advance for $100, you should be giving back just $115. The interest charges for the NSF fees are higher than 1,251%! Talk about an enormous savings by receiving a payday advance, but if you merely start to consider the $15 charge that is standard for the $100 check loan, you could see how the amount would appear expensive.

Another case is a charge card liability. If you owe $100 on your charge card and your late payment charge is $30 for submitting it late you are staring at paying $130 for your charge card obligation for a sole month. This is in comparison to the $115 that you could be charged for the check advance. Nevertheless, compared to the 391% interest fee for the cash loan you are looking at higher than 678% interest to the charge card company. Once again, this is a gigantic disparity that you may not quite observe to start with, but prior to just a mere tardy payment charge to the credit card lender, you can notice how this can actually spin your budget off. Let us assume for a moment that the credit card lender assessing the $30 tardy payment charge through your account over the credit limit, you are then facing another $30 above the limit fee, in addition to possibly staring at a larger interest fee because you have fallen behind. As a final example, let us consider a gas bill. For instance, yet again, the obligation is $100, and you are unable to submit the debt. We will pretend that your utility is turned off. Around the country, you may be forced to pay an added $200 guarantee, in addition to a $75 reconnect fee! This is tacked on top of your original $100 utility bill, which now is the expensive total of $375, of which only $100 is really given to your debt. Surely, you could see, the fees that you might be charged compared against employing a check advance are pricy which makes the steep charges of pay day loans appear quite easy.…

Payday advance loans offer excellent benefits

If you have ever had any financial issues, you have likely noticed that not only is your budget out of control, but you have very few options available to you in retards to getting it back under control. With some careful consideration, you are able to not only ensure that your budget is working out well, but also get a small amount of money to hold you over until your next payday, which will allow you to be certain that you are getting the best impact possible for your finances. With any budget there is bound to be some problems, a Payday Loan Advance can offer assistance though. The benefits include the ability to get the money that you need, when you need it. Plus, you can save your privacy since the information that is given to the payday loan lender is not shared with others. This makes it much easier to get the information out that you need, without having to worry about what you are going to be getting. Payday loan lenders keep your information private, which ensures that people are not able to discover your finances without your permission.

For most people, a payday loan offers the opportunity to control their finances at a time when things are out of control. Because you are able to handle the payday loan in the manner that you see fit, it is possible to use the funds to cover bills, a car repair, a shopping spree or anything else. This gives you the freedom to use the money in the manner that you see fit, without any complications or hassles. If you really enjoy and appreciate the benefits that a payday loan can offer, you will quickly find that they are an amazing financial tool.It is important to remember too, when applying for payday advance loans, you do not have the embarrassment of having a bounced check, nor do you have the humiliation of not being able to cover your bills when they are due. You get the access you need to cash, and are able to keep your dignity without getting embarrassed and help you to ensure that you are able to cover debts when they are due, rather than getting stressed out about minor details.

For most consumers, a payday loan can be a great opportunity. Knowing that there is access to some fast cash that does not cost a fortune is a great ease when you are stressed. After all, there are times when extra money is helpful, and you know that getting your hands on the additional money is always extremely useful. Take advantage of all of the financial tools that are available to you, it will amaze you just how easy it is to get the financial help that you need without plunging deep into debt and while still maintaining control of your finances.…

Taking advantage of no fax payday loans

The broad mass of citizens just do not possess the energy and assets to search about for all of the different cash loan companies in their neighborhood. Nor do they possess the time and resources to commute around to the bank fetching a copy of the bank acknowledgement. This together with the fact that most people are not capable to skip off from their job anytime they desire means that it is very essential to be certain you are looking for the easiest method to ask for a payday advance attainable. Generally speaking, the simplest manner of applying for a payday loan is the no fax payday loan. This is due to no requirement to commute around the neighborhood searching for required papers, there is no requirement to commute around the neighborhood looking for a place to apply, and there is further no requirement to drive around town to your bank to deposit the money. The obvious and clear certainty is a no fax cash loan can enable you to apply for the cash advance right from your home at the moment that is most appropriate for you.

Realize how suited it is for you to be capable to apply for a cash advance at the instant that is suited for you. Keep in mind, not everybody is capable to take time off from work to ask; this results in tons of borrowers are only able to apply in the middle of the night. This is a huge dilemma for many borrowers due to the local cash advance businesses are not open in the middle of the night. Still, the faxless payday loan companies are open and they do still welcome your application no matter what moment it is. This places them the most suited choice you have. Additionally, with the accessibility you can ask for a payday loan while you are still in your jammies prior to your day has ever started.

This is a gigantic savings of your time and will enable you to move ahead with your day, in lieu to striving to rearrange each of your common errands for the day. Instead of sitting around bothered about how you will have time to go to seek out a cash advance you could move on with your day, you could work on the additional areas of your life that require attention. This creates a great alternative for just about anybody. In addition, at the exact moment, it is a huge bonus for anyone whom does not desire everyone to know that they have a payday advance. After all, not everyone is open to the concept of employing a regional payday loan due to they do not wish for the inherent embarrassment. A no fax payday loan ensures that you may request from the snugness of your home and never have to tell anybody that you have submitted. You are able to control your privacy, proceed along with your plans and still get the cash into your bank account that you need to be certain that your bills are paid when you most require the cash. As you can see, No Fax payday loans may be a gigantic asset to anybody who is searching for a simple reply to their concise budget requirements.…

Save money with faxless payday loans

Trying to save money on payday loans is something that can leave you extremely confused. Without enough time looking at all of the small details that can add up, you will quickly discover that the costs can get out of control. If you watch your budget carefully, you know that wasting money can happen really quickly. The same thing can happen with a payday loan, without watching the expenses carefully you will find that rather than helping your finances like you had intended, it is actually a drain on your budget.

The primary reason that Faxless Payday Loans become a burden on your budget, rather than a help is typically really easy to solve. For most households, if you take the time to carefully budget out your money and plan ahead for the payback date, you will find that it is much easier to get your payday loan repaid without any problems and without any complications along the way. However, if you forget about the date when your loan is due, or you simply do not plan to pay off the loan, you will find that actually getting the money together to repay the debt is almost impossible.

Rolling over or renewing the loan can be a huge help, but it is not something that should be done lightly. Before you decide to roll over your payday loan, you need to understand that you will be paying additional interest fees and charges. This can add up quickly if you are not careful. Excessively rolling over the payday loan is something that can not only cost an extreme amount of money after a while, but in many areas in also not permitted by law. Because of this, you need to be absolutely certain that you schedule the payback of the money as quickly as possible. Never ignore the financial responsibility that you have to repay the debt, or the fees will quickly add up.

However, there are times when a financial emergency will arise and you are not able to repay the debt as quickly as you had planned. When this happens, you need to realize that seeking some help is very important. Many times, if you contact your payday loan lender, you will be able to get arrangements worked out that will allow you to get your loans paid off quickly, while still keeping ultimate control of your budget.

Remember, no matter what you might think, a Faxless Payday Loan should never become a burden on your budget, you need to be sure that you are making appropriate plans to keep the loans in check before allowing it to take over complete control of your finances so that you can be certain that you save as much money as possible on the loan, rather than plunge yourself into debt. A small amount of time on budget planning can go a very long way towards staying out of debt and keeping your expenses minimized.…

Featured below are 5 tips to utilize when applying for a payday loan

If followed, you will not only increase your chances for approval, but you will get the best payday loan (maximum borrowing amount with most desirable interest rates). If you have any questions about how payday loans work, please contact us. Get more info about getting the best payday loans.

Apply for your loan in the morning
If you can, apply the second you wake up! We are not kidding! Bottom line, the earlier you can apply, the better. Typically, lenders will begin to close their day around noon.

Submit your application early in the morning
That’s right, we are saying it again. We can not emphasize enough how important it is to apply early in the day. Almost every payday loan lender has daily caps or limits as to how many loans they will fund/day. Once they reach their cap, they will not take anymore applications for the day. Some lenders will take applications throughout the day, but tighten the restrictions they impose for approvals as the day progresses. Therefore, the later you apply in the day, the harder it is going to be for you to get approved. In fact, the amount of lenders that will see your app upon submission will likely decrease by 50% by mid-afternoon and by 75% by the evening time. There are very few payday lenders that are full-steam 24/7. Choice Personal Loans is a 24/7 provider of payday loans. You can apply with us any time of the day. Your chances of approval will be the same if you apply at 6am and if you apply at midnight!

Fill out your application accurately
It is very important that you input accurate information when remitting your payday loan application. Avoid leaving information out and do not try and deceive the lenders at all. Don’t forget that the United States is still in an economic crisis and all lenders are looking for reasons not to lend. The bottom line is that the information you input needs to make sense to lenders. They DO want to help people with bad credit. But, if you lie about your job, income or any other critical underwriting criteria, they will figure it out and deny your request. In addition, any future lender that views any subsequent applications, will see that you lied on your previous applications and most certainly deny you again. To avoid a future of continuous payday loan rejection, NEVER input false or erroneous information.

Sell yourself to any potential lender
Some lenders will contact you via telephone to verify information before they decide whether or not to fund your loan. Therefore, relay any positive information that you may have about yourself. If you are a borderline approval, any extra info will help your case, and potentially put you over into the approval zone. Payday lenders are the most understanding when it comes to realizing that ‘bad things happen to good people’. Everyone makes mistakes and/or things happen that are beyond our control. Payday lenders understand this, but you need to let them into your life by informing them of all the bad that has happened and all the good that is going on now.

Communicate with your lender in the event that you can not pay your loan on time
Did you know that over 50% of payday loans go into collections? The lenders are fully aware of this. Therefore, you need to communicate with your lender if you are going to fall behind. Falling behind is very common and they will work with you by making an alternate schedule for re-payment. They would much rather get paid in-full over a longer time period than have to put your account into collections and potentially get paid a fraction of what they are owed.…