Wildlife donation – Rio Grande Delta Audubon http://riograndedeltaaudubon.org/ Sat, 23 Oct 2021 02:15:43 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://riograndedeltaaudubon.org/wp-content/uploads/2021/10/icon-50x50.png Wildlife donation – Rio Grande Delta Audubon http://riograndedeltaaudubon.org/ 32 32 Need Cash Fast? Quick Payday Loans Offer a Solution For You https://riograndedeltaaudubon.org/need-cash-fast-quick-payday-loans-offer-a-solution-for-you/ https://riograndedeltaaudubon.org/need-cash-fast-quick-payday-loans-offer-a-solution-for-you/#respond Fri, 22 Oct 2021 15:58:19 +0000 https://riograndedeltaaudubon.org/?p=943 In this economy, the idea of getting your paycheck before it actually hits your account is appealing. There may be a catch. Do you need a quick loan? Read more at bridgepayday.com Why payday loans are popular? Payday loans are popular because they are small, unsecured loans with short terms that don’t require collateral. In practice, however, […]]]>

In this economy, the idea of getting your paycheck before it actually hits your account is appealing. There may be a catch. Do you need a quick loan? Read more at bridgepayday.com

Why payday loans are popular?

Payday loans are popular because they are small, unsecured loans with short terms that don’t require collateral. In practice, however, they can end up costing the borrower a lot. You need to be aware of what you are getting into.

Todd Christensen is an education manager at Money Fit by DRS. He explains that payday loans are based on the idea of providing just enough money to get you to your next payday. This theoretically happens within two weeks.

The loans are convenient because companies organize their offices more like a fast-food restaurant.

Just like McDonald’s, you can get your order within a short time.

Christensen states that loans are quick, which means you can have the money in your account in a matter of hours or less. Compare that to banks or credit unions which can take days to approve personal loans, especially if your credit score is not good.

Payday loans are expensive. 

Lenders will often advertise their fees in percentage rates, but these rates are usually based on the term of the loan. This makes them sound worse than they actually are. Christensen states that a two-week 15% charge equals a 390% APR (5% x 26 2-week terms per annum).

This is not good considering that borrowers who apply for these loans may not be able to pay the repayments.

Lisa Stifler, Center for Responsible Lending director of state policy, says that loans can be very expensive and can cause many financial consequences and harms. If you are already having trouble paying your bills monthly, then this loan will add to that debt.

It’s basically a trap. Research has shown that 80% of payday loans are rolled over and renewed within two weeks. An average of nine loans per year are taken out by active borrowers.

Here’s a quick example of how quickly things can get out of control. Let’s say you get a $200 payday loan with a $30 charge. You can’t repay it after the two-week grace period. You decide to roll it over. You’re now responsible for the $200 borrowed, the $30 first and $30 additional fees. In just a few months, you’ll owe more interest/fees that you ever received in credit.

Even worse, regulation is often patchy. The Consumer Financial Protection Bureau rescinded last month a 2017 rule that required lenders to verify the income and expenses of borrowers before granting them loans. Stifler states that the decision to repeal this “common-sense rule” means that lenders will be free to continue their business as usual.

Apps and online lenders are also under scrutiny: Officials in 11 states and Puerto Rico launched an investigation into the industry of payroll advances in August 2019. They are investigating whether tipping, monthly memberships, and other fees “are unscrupulous and harmful to consumers”.

Get money fast

Bottom line: Payday loan can quickly turn into a predatory business if you aren’t careful. Pay attention to red flag phrases such as “get money fast”, “same day transfer” or “no credit check” when you’re looking for loans.

You would prefer not to be in a financial crunch as you have an emergency fund. Christensen suggests that you have an emergency fund in case you find yourself in this situation.

  • Ask a friend to lend you a small amount of money for a short term. Offer to pay interest
  • My credit card allows me to get a cash advance
  • Consider a personal loan via an online peer-to–peer platform, a bank, or credit union

Everyone gets in trouble from time to time, but the goal of a payday loan is to offer a better option with lower APR and fewer strings.

He says that a payday loan is only a temporary fix and can often make things worse. Click here to learn more about your options.

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