Payday Loans: Filling the Gap Between Paychecks

With the economic downturn, more individuals are living paycheck to paycheck. What happens when someone has spent their last dollar on the gas bill only to step outside and find their car won’t start? There was a time when that person could call up the bank and get a signature loan. That time has passed. Banks are making it more and more difficult for the average person to get a loan. Another type of loan has made the way into America’s mainstream, this is the payday advance.

Payday Loan Basics

These payday loans are generally made without a credit check but it is necessary to provide proof of employment to determine eligibility for payday loans. Usually the income requirements are that the applicant has been employed for at least six months, makes at least $1,000 per month and is paid via direct deposit. Since there is no credit check, this type of loan is much easier for those with less than perfect credit to get the money they need, when they need it. This type of loan usually has a high interest rate. The repayment is taken directly out of the checking account provided at the time of the loan. The due date would be the individual’s next payday.

Amount of Payday Loan

Most payday advances allow the individual to get up to $500 overnight and in some cases in as little as two hours. Loans for more than $500 generally take a bit longer to approve and process. Many loans can be processed online with no need for face to face interaction. This makes it easier for those that are worried about someone seeing them at a brick and mortar store front. More and more payday loan lenders are making it even easier to apply for a loan since they have eliminated the need for signed documents.

Loan Documents Needed

There is no need to provide documentation as to what the money is being used for. This is not like taking money out of a 401K/IRA or other specified usage savings accounts. This money can be used for emergency needs such as car repairs, home repairs, unforeseen medical bills or any other needs the person may have.

Each state varies in laws but generally only one payday loan can be active at a time per payday lender. Even though the due date is the next payday, some payday lenders offer loan extensions. There is typically a limit to the amount of extensions that can be given per loan.

How to Consolidate Credit Card Debt – in Case You Have Poor Credit

As I am composing this informative article, it’s declared above 70% of American families are struggling in some shape or form with their own month-to-month charge card installments. Therefore, it really occurs as no surprise that the quantity of people looking for methods to consolidate credit card debt is actually happening more often.

This is the deal though, it isn’t as easy as it sounds.

By the time the typical consumer chooses to get some sort of “help” – in this instance, attempting to consolidate credit card debt, it is typically too late. Unfortunately, in most cases, individuals don’t recognize that their credit card debt is unmanageable till they have been overdue for a lot of months, or actually worse, not made any repayments for several billing cycles.

Whenever such things happen, the consumers credit score obviuosly suffers, correct? Therefore, especially in this economy, it is tough to obtain an additional credit card business or perhaps a local bank to agree to consolidate your credit card debt simply because your credit standing no more justifies a fresh or greater line of credit.

Therefore, the question is, what else could you do?

For starters, you should start thinking outside the box slightly! Are you aware you could successfully consolidate credit card debt if you don’t take out a new loan, getting a brand new credit card, or establishing a new credit line? Well, it is possible to and it is something that more and more individuals have been turning to so as to get control of their own financial situation, more specifically their unsecured debt.

The way that individuals do this is by leveraging non-profit establishments that have been created specifically to aid consumers with their own unsecured credit card debt. The greatest part is that these people communicate directly with your lenders so that you no longer live through collection calls, or harassing bank card company workers. Good deal, correct?

Here is a short run down of how specifically it works.

First, you’ll need to do the responsible thing and get in touch with 1 of these kinds of agencies. When you let them know your circumstances and that you want to consolidate your credit card debt, they are going to collect a little bit of data through you.

Normally they will want the name of the credit card businesses you owe, exactly what the actual balance is, and what the lowest payment amount is. The things they’re doing using this type of information would be to consolidate your debt internally. Due to the fact most agencies have been around for some time, they’ve established interactions with numerous if not all of the credit card banks that you will be looking to combine.

Because of their non-profit status, the companies that you owe money to tend to be more likely to offer concessions in the form of rate of interest reductions, monthly payment reductions, as well as in some cases these people are willing to forgive part of the main balance. If you believe this seems too good to be true, it’s not. Organizations that provide this program have been around for over a 10 years and are generally granted a non-profit status because the program that they provide is “socially advantageous”.

When the “formalities” are looked after, you’ll be told your new combined payment. Monthly you will send your payment to the non-profit organization and so they will in turn disperse your money to your differnt creditors. Therefore, at this point, not only do you no more have to face the credit card companies, but you have for all intents and purposes found ways to consolidate credit card debt even if you have a poor credit rating or just down and dirty bad credit.

The main thing you need to do today if you would like to consolidate your credit card debt will be to take action. I state this because when your accounts get too out of control, meaning charged off or even placed into some sort of legal position, there is little that any person or organization are capable of doing to help you, non-profit or not. Therefore, if you are fighting your monthly obligations and would like an alternative solution that’s secure, lawful, and effective, you need to definitely take a look at this kind of consolidation as an option.