Cash Advance Loans: Loan Sharks In Disguise?
You have seen them on the corner and in the poorer parts oftown with names like "Quick Cash", "Quick Loan", "PaydayLoans", "Car Title Loans". They are starting to sproutup all over the country and will soon rival Starbucks forsheer number of locations.They are the new trend in predatory lending practices butstill manage to fly under the radar of regulation in moststates. They don' t charge interest, they charge a"fee".But it sounds like the ultimate in convenience. Needsome quick cash - stop by and in just five minutes you canbe out the door with $100, $500 even $1000 dollars. But what is the true cost of this "convenience"?How It WorksA cash advance or payday/paycheck loan is usually secured bya personal check.
Some companies want your bankaccount or credit card information in addition to or insteadof a check.You write a check to be cashed or agree to have an amountwithdrawn from your bank account sometime in the future;usually 14 days (the standard payroll period).After completing the agreement/contract you are given anamount that is less than what you have agreed to pay. The difference is the "fee" for the loan service. Andyou have got your cash!Why It WorksWhy is the company willing to loan you money likethis? Simple, because loaning out money for these"fees" really amounts to a huge profit at your expense.For example, say you borrow $200 and the lender charges a"fee" $15 for each $100. Within 14 days you will have topay $230 for borrowing $200. Now if the $200 keeps youfrom having to pay a $100 late fee or penalty on somethingit is probably worth it.
But if you just want themoney today, you are paying a high price.You are paying 15% interest for a 14 day loan. Thatamounts to 3785% compounded interest yearly! No wonderlenders are happy to loan you this money. If they loanyou $100 and you pay them back with an extra $15 in twoweeks and they loan out the $100 again along with the $15extra you paid, and they keep doing this for one year, theywill turn their $100 into $3785 by the end of the year!Maybe you should be loaning your money to them rather thanborrowing from them.What To Watch Out For * Early repayment fees. Pay off your loan early and theysock you with another fee. * Late repayment fees.
You may have to pay the entire feeagain if you miss the payment date. * "Membership" fees. Some companies charge you to becometheir customer along with charging you as their customer. * Giving lenders access to directly debit your bank account.Just hand them your wallet, it's quicker. * Fine print (as in all contracts).
Know what you aresigning or don't sign it. * Bounced check or debit fees. Make sure you have money inyour bank account or you get to pay your bank a fee as well. * "Collateral" requirements such as a car title. Miss yourpayment and you may be missing your car - permanently.There Is A Better WayThe root problem here could be that you are gettingstrangled by your debt payments.
Credit cards, storeaccounts, installment payments and such can eat up yourincome quickly. Ite may be time to visit a non-profitcredit counseling service or create a debt reduction planfor yourself.Or it could be that you are just spending more than youmake. You may need to spend a few minutes each weekand write down your expenses. Then categorize andtotal them to see where your money is going. Thenrecord your income for the same time period and make surethat you are not spending more than you make.Sure, everyone gets behind occasionally.
But you needenough room in your budget (this means spending less thanwhat you make) to accommodate the "budget busters" andsurprise expenses that may come up. It may meancutting back on cable, magazine subscriptions or eatingout. But last time I checked, McDonalds did not chargea $15 "fee" for making your food..
How To Get a Good Value on Personal Loans
Over recent years, personal loans have become a popular solution for many consumers looking to raise finance for a variety of purposes. You can get personal loans for all sorts of things, from debt consolidation to holidays, cars and other purchases. It is far easier these days to get a great deal on finance, with cheap personal loans available from a variety of competitive lenders.When looking into personal loans, you should consider a number of factors. Comparing the interest rates and terms on a selection of deals will ensure that you get access to cheap personal loans so you can enjoy lower monthly repayments. And if you go online to browse deals and apply personal loans lenders can offer instant quotes as well as really competitive rates of interest.
It is always advisable to compare a number of quotes and deals on personal loans, as you can then make an informed decision with regards to which finance package offers the best rates and terms for your needs and your budget...
How To Get a Good Value on Personal Loans
Loans > How To Get a Good Value on Personal Loans
What is a personal Secured Loan?
A personal secured loan is the generic term for a loan. In simple terms a personal secured loan gives security to the lender on the loan other than a simple promise to repay the loan. This type of loan is essentially an amount that is secured against property put up by you as collateral. Since this affords a measure of security to the lender, you as the borrower get lower interest rates and a longer period in which to pay back your loan A personal secured loan is secured against your home to act as security to the lender for the money you have borrowed. A personal secured loan is often referred to as a homeowner loan.
Personal secured loans are an ideal solution for homeowners who have recently been refused a personal loan or for home owners wanting to borrow a larger loan amount. Personal secured loans enable homeowners to borrow capital against the value of their property. This means that you are effectively using your property to guarantee the loan. This means that the person...
What is a personal Secured Loan?
Loans > What is a personal Secured Loan?
Finding a Memphis Mortgage
Located by the Mississippi River in western Tennessee, Memphis is a city rich in history and diversity. Long associated with giving birth to the civil rights movement - Dr. Martin Luther King was murdered at the Lorraine Motel there - the city has emerged as a place where business is welcome and tourists love to visit. For these reasons, local residents enjoy the city purchasing property and welcoming new neighbors. A Memphis Mortgage awaits you if you want to invest in this charming city.
Purchasing a house in Memphis is a lot like purchasing a home in any city: you make a down payment, contact several lenders for competing bids, and select a lender based on the information given.
Your Memphis Mortgage is ready and your move is assured. Not so fast! Huh? Have you researched your options thoroughly? Are you satisfied with the offers received? How do you know if the rate you received is accurate? Let's look at some online sites that can provide key and up to date...
Finding a Memphis Mortgage
Loans > Finding a Memphis Mortgage