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Back to Payday Loan Straight Talk
16 April 2008
Is 36 Percent the Magic Number?
In looking around at Payday Loan legislation news, it would appear a 36 Percent rate cap is the target number
opponents have determined as their number.
The problem is these people are thinking in banking terms. A regular old bank would be tickled pink getting
36 percent APR on borrowed money. The thing they do not understand is this.
Read more Payday Loan Interest Rate Caps
14 April 2008
Will They Ever Learn?
I recently wrote an article about Virginia tightening their payday loan regulations. This got me to wondering if
they ever will learn? I find it amazing that State and Federal Governments are missing the boat on payday loans.
Read more Will They Ever Learn?
13 April 2008
Let Uncle Sam Pay Off Your Pay Day Loan
Uncle Sam may soon be sending you money to pay off your pay day loan.
Many qualified Americans will soon start receiving their economic stimulus package. Starting in May, the US Treasury
will be sending more than 130 million payments to those who qualify.
Read more Pay Off Your Pay Day Loan
11 April 2008
Real Pay Day Loan Cost
A found a website built by Consumer Federation of America,
Pay Day Loan Consumer Info. It has a super loan calculator that can help you determine the annual interest rate
of your pay day loan. This is important because the notion of pay day loans being short term does not hold up
for most borrowers. Most pay day loan borrowers with have 8 to 13 pay day loans of
renewals in a years times.
This pay day loan calculator lets you set the following options.
Loan Fee
Pay Day Loan Amount Borrowed
Loan Length
Number of Loans or Rollovers before it is paid off
I especially like the last option. It helps you really get a good look at the true cost of your pay day loan.
Getting a pay day loan is a great feeling when you are pinched for cash, but it WILL need to be paid back.
It WILL impact your future financial stability if you do not have a pay back plan and understand the possible impact
it can have on your life.
10 April 2008
The Payday Loan Battle Heats Up
The battle between state lawmakers and the payday loan industry continues to heat up.
- Arkansas Attorney General, Dustin McDaniel has put the squeeze and Payday Loan Lenders for violating the
states constitution which limits interest rates charged to borrowers.
- Kansas City voters recently add a $1000 tax to Payday Loan providers to help pay for regulators.
- Payday Loan supporters get loud as Ohio holds hearings to tightening payday loan regulations.
I have mixed emotions regarding this battle. While at the height of my payday loan borrowing, I was paying
over $1000 per month in interest. This massive debt load was strangling my financial foothold. On the other hand,
I am a firm believer in personal responsibilty. I got myself in too deep with payday loans and I had to work a second
job to pay these loans off. People need to understand what they are agreeing to before they secure a payday loan.
They must have a payoff plan before they get the loan and work toward removing the cause that forced them to get
this high interest financing.
Payday Loans Lenders would not have been this successful had conventional lending institutions not ignored
those who needed short term loans. Now it appears some Payday Loan lenders have gone too far by charging
interest rates that far surpass the risk they take.
Where will it all end? While I agree some forms of legislation is needed to curtail the greed of some payday loan
lenders, it is insane to only allowing lenders to charge 17% APR. This will only drive the Payday Loan
industry into the ground. Leaving those who need payday loans left out in the cold with no lenders to turn to.
Does the Payday Loan Industry have a place in the financial market? I believe they do.
09 April 2008
Payday Loan Considerations
Finding a Payday Loan Provider is not very hard. Do a quick search on your favorite search engine and you have thousands of website to choose from.
You'll see - Apply Here, easy 2 min application, and get up to 1500 into your account overnight. Are they all the same? Are their interest rates the same?
Many questions need to be asked before you apply.
Some time ago, I wrote an article,
Payday Loan Considerations. I think this covers many of the questions one needs to ask before making any commitments on your
payday loan.
April 8, 2008
Careful Payday Loan Borrowing
I know how it is when you are short on cash. I have been there. In my experience with payday loans, I have
discovered one important thing. Only borrow what you can afford to payback on your next payday. Or within
the next couple of paydays.
Here's why...
Most Payday Loan websites will tell you it is cheaper than a $30 fee for a bounced check. Let do the math.
Assuming you only have one check coming in for $100, it will cost you $130 if it bounces. You borrow $100
from a Payday Loan provider who charges a $20 fee per hundred borrowed per payday. If you pay it off on your
next payday. It will only cost you $120. Congrats! You saved $10 and the bounced check on your record. If you roll over
your loan multiple times, the cost savings goes away and you run the risk of falling into a bad payday loan
borrowing habit.
In my previous blog, I discussed tips for saving money. Be sure to read the blog and try to implement some of the
tips. You may be able to save some well needed money.
April 7, 2008
Strategic tips for fixing Your Financial Emergency.
Using this strategy for 30 or 60 days will create new habits that will save you a lot of money
over time.
1) Plug your big money drains.
Sometimes this requires you to get rid of an activity that you really love. Do you camp or fish?
Maybe it is time for you to sell your camper or boat. This may not be very easy to swallow. But
you must get rid of the big money drains intil you get your finances in order.
Read more about Financial Strategies
April 7, 2008
Strategic tips for fixing Your Financial Emergency.
Using this strategy for 30 or 60 days will create new habits that will save you a lot of money
over time.
1) Plug your big money drains.
Sometimes this requires you to get rid of an activity that you really love. Do you camp or fish?
Maybe it is time for you to sell your camper or boat. This may not be very easy to swallow. But
you must get rid of the big money drains intil you get your finances in order.
Read more about Financial Strategies
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