Category: Payday Loan

Defaulting on a Payday Loan- Can I Be Arrested?

Many people wonder if they can be arrested for defaulting on a payday cash advance loan. Although this is not a good predicament in which to find oneself, the good news is: No, one cannot be arrested in the case of a payday loan default. As a matter of fact, under the Fair Debt Collections Practices Act (FDCPA), it is absolutely illegal for any lending institution to threaten a borrower with the prospect of being arrested for non-payment of any kind of debt. No matter how many threats you receive for not repaying a loan, it cannot happen, as there is no law allowing one to be arrested for not repaying payday loan debt. As a result, you have no reason to worry about being arrested if you find yourself defaulting on a payday loan or cash advance.

So What Is There to Worry about?

Even though you cannot be arrested for defaulting on a cash advance loan, there are other matters of which to be concerned. These worries may not quite compare to facing a prison sentence, but nevertheless, they are not situations in which anyone wants to find themselves. For starters, non-payment of debt will result in the skyrocketing of penalties and fees. The more you delay in repaying the loan, the more these fees and interest will accrue. In time, this will undoubtedly make repaying the loan that much more difficult.

Aside from fees, penalties, and interest piling up, delaying the repayment of an advance loan will steadily have a negative impact on your credit score. The longer you allow payday loan debt to accrue, the more and more your credit score will plummet. Your credit rating will be even more negatively affected the larger the loan is. Therefore, anyone taking out a large payday loan and then delaying its repayment can expect their credit rating to look horrible within a matter of months.

To avoid any of these situations, it is very important for you to think very carefully about whether or not taking out a payday loan is right for you, and if so, if you will be able to repay the debt by the next paycheck period.

Whenever you fall into any sort of financial urgency and you have no funds with you? Then, don’t need to get tensed because payday loan no faxing is ready to assist you. The application process of these loans is quite different from conventional loans. The entire application process can be handled online and it is free from tedious faxing & other application process.

Payday loan no faxing is mainly created to handle unforeseen financial requirements. Whatever you circumstances you can freely consider these loans and avail swift funds despite of bad credit records and history. Yes, it’s true because the application process is free from credit check process. Now, anyone can apply for these loans and get approved swiftly without getting tensed about their worse credit records. As the loan name suggests, no fax payday advanceare free from prolonged faxing procedure. Now there is no need to waste your time in making complete documentation process. As the whole application can be completed online then search a perfect lender over the net and directly apply online. The borrowers can fill the online form with convenience of their home. After approval the cash will directly credit into your bank account within 24 hours. There is no restriction on the usage of loan amount. The borrowers can use the loan amount to fulfill various unexpected requirements like: medical bills, school fees, car or home repair, sudden shopping expenses etc. Through these loans you can avail amount ranging from 100 to 1500 as per your present requirements. Within 14-31 days you can simply repay the amount to the lender. But, remember these loans follow high rate of interest. However, systematic online research can solve this issue and avail you lucrative loan deal. There are various lenders available in the market that will ready to provide you this loan deal on better conditions with affordable price. So, it is advisable, before taking any decision have proper online research and take decision accordingly. y.

Negotiation is something we do all of our lives. So why should it be scary to negotiate our payday loan debt? After all, as children we negotiated our favorite ice cream or a trip to the movies plenty of times. When dealing with aggressive collectors though it’s easy to understand the hesitation.

Just the phrase ‘negotiation’ can carry that ugly connotation of two hard-nosed business men leveraging assets for personal gain. Two salesmen, if you will, in a game of executive ‘chicken’. Who’s going to bend first? Ironically, the moat successful negotiations are accomplished with the interest of both parties in mind. Let me explain…

It’s simple. You are not cheating, lying or stealing by having the need to consolidate payday loans. You simply got blindsided with an unexpected emergency or somehow have found that you can not pay off your debt in full…forcing you into a life of renewal hell. That’s right renewal hell, the place where you work hard so you can pay a renewal fee to owe the same amount of money next week, (genius if your the lender).

It can end and it’s as simple as negotiating that cone of black raspberry ice cream. There are payday loan consolidation companies that deal with these creditors on a daily basis. Basically what they do is combine all of your debt into one monthly payment that works with your budget. Then the debt relief company contacts your creditors and negotiates either a payment plan or a payday loan settlement. They do this for each one of your loans for a period of about a year, until your last loan is resolved.

You can also learn how to do it yourself. There are online strategies and tips for paying off your payday loans, in step by step programs.

If you do decide to negotiate your payday loan debt yourself (we all have it in us) than be sure to communicate your hardship professionally to your payday loan lender, (void of emotion if possible!). Work out what you can pay in accordance to your budget and just be honest. All you can do is all you can do. Your family comes first, don’t ever forget that and don’t let a money hungry collector tell you otherwise.

Online payday loan lenders offer unsecured short-term loans where the borrower isn’t expected to provide collateral for the loan. For this reason, payday loans are considered risky on the lender’s part which makes interest rates and fees on these loans typically high. Although some consumers choose to stay away from this type of borrowing option, others don’t hesitate because they know they can get a payday loan fast and without a credit check.

Unfortunately, there are just some circumstances in life that leave people with no choice but to go ahead with getting an unsecured loan. This is especially true when there are expenses that that are not part of the monthly budget. These expenses could come in the form of emergency vehicle repairs, unexpected hospitalizations, urgent repairs in the house and even unexpected visits from family or friends.

Just as in any decision you make in life, taking out an online payday loan requires some thought. Borrowers should make sure to compare the offers of lenders before getting online payday loans so that they will make informed decision as to which lender can give them the best offer. The reason for this is that payday loan lenders online offer different products and have different interest rates as well as repayment plans.

A lot of payday loan borrowers no longer care about the annual percentage rate of interest (APR) charged by their online payday loan lenders. The reason for this is that payday loans are only for a short duration of time, mostly to be repaid within a one-month period. However, knowing the APR for the loan you are getting is significant so that you will know whether you are getting the best deal from your lender. You see, the APR allows you to see the true cost of the loan you are getting compared to other options you have available.

For instance, if you need $300 for an emergency repair in your home’s sewage system you can consider two options: first, you can take a credit card cash advance with an 18% interest rate and second, you can take a payday loan cash advance for a two-week period with a 15% interest rate. At first glance, it would seem that the payday loan is the better option because the interest rate is lower. However, you have to remember that the loan is only for a 2-week period. In reality, a two-week period with a rate of 15% actually has an APR of 390% (that is 15% multiplied by 26 2-week periods in a year).

Don’t be fooled by the “low interest rates” advertised by online payday loan lenders the next time you find yourself in immediate need of cash. The US Federal Reserve Board require all lenders, including payday loan lenders, to disclose their APRs so take advantage of this regulation and demand for its disclosure at all times because this requirement was placed there by the Board to protect you as a consumer.

Although quick and very convenient, payday loans can be more of traps than bridges. According to studies, the usual customer takes out 11-12 payday loans a year and nearly 40% of borrowers extend their loans past the first due date. And one payday loan company even reported that it relies on its repeat customers for over 89% of its business.

If this is the case, more and more Americans in payday loan-approved states are suffering from the spiral of debt. This happens when people cover one debt with another, losing their actual salaries to interest rates and late fees. And so because of this, more than $10 billion annually is made by payday loans in the country.

How much of a necessity are payday loans that people keep taking loans out, regardless of the repercussions? This can be attributed perhaps to the convenience and simplicity of payday loan. Applying for a payday loan is, in fact, so convenient and simple that people often have to wait a maximum of two days to get the cash they need. Also, this scheme is ideal for low-income and elderly people, as it does not require a credit check.

And in the Information Age, the process has been made even easier through the use of the Internet. Now, online payday loans do not require faxing a form or going to the physical location of the office. Literally, all you need to do to apply for a payday loan is to click and type.

Online payday loans are helpful at a specific time of need, and if you can afford to pay up for your loan and fees on time. It only begins to be scary when the reality that you may never get out of a previously small loan poses itself as an impending doom. That’s why it’s imperative that borrowers make regular, prompt loan payments.

If you are in need and seriously considering applying for online payday loans, make sure that you read and you are informed about every detail of the loan. And keep up with your deadlines as much as possible. The combination of these two things is probably the key to preventing debt caused by payday loans.