Payday loans

Why Use A Direct Payday Loan Lender

Surviving paycheck to paycheck is never easy, but it is hard for many people and families. However, in the event of an emergency, anyone may find themselves strapped for the funds they need to resolve the crisis without falling into financial ruin. In such a crisis, a stopgap measure may be the difference between financial safety and disaster. In such situations, payday loans from a direct payday lender might do the trick.

Why a Payday Loan?

Payday loans are fast ways to get a quick financial stopgap in the event of a financial emergency between paychecks. Working with a direct payday lender is a fast and easy way to cover emergencies since banks or third-party lenders do not handle them. Those in need of a payday loan can get them fast without agonizing over bad credit or long bank delays.

There are other benefits to direct payday loans as well. For one, repayment of the loan is just as easy as getting the loan itself. This ease is because, just like the payday loan comes directly from the lender, payment is also direct. As a result, the loan process is quick and easy. Payday lenders often respond to loan applications with a day, rather than days or weeks banks or loan companies can take. For money needed in a hurry, this makes payday loans ideal for those who require cash fast.

Payday loans also utilize far less personal information than traditional loans. Payday loans do not increase the risk of identity theft or having private data sold to advertisers. Banks and other third-party lenders are notorious for selling such information, and being unable to keep it secure from identity thieves.

Contacting payday lenders is much easier than dealing [...]

By |August 3rd, 2020|Payday loans|Comments Off on Why Use A Direct Payday Loan Lender|

Traditional Banks Vs. Payday Lenders

People in difficult financial situations—including those with bad credit—typically endure an uphill battle in finding viable financial solutions. In such cases, the most common options for short-term loans are payday lenders or traditional bank overdrafts.

Unfortunately, consumer advocacy groups tend to paint payday lenders as the bad guys due to their high-interest rates for payday loans. But by looking at financial data, this criticism is more-or-less unwarranted with what banks charge for overdrawn accounts.

The Hidden Truth of Traditional Bank Overdraft Fees

A rarely discussed topic among consumer advocacy groups is traditional banks raking huge profits from unscrupulously high fees on insufficient funds. According to data from the Consumer Financial Protection Bureau (CFPB), banks make more than $17 billion annually from insufficient funds and overdraft fees.

Unless consumers take an active initiative to monitor their bank accounts consistently, insufficient fund fees can quickly add to exorbitant amounts. For example, let’s assume that a bank charges an average fee of $35 for every transaction that exceeds the level of funds in a checking account. A slight $10 overdraft could result in a $35 NSF fee, equating to an interest rate of 350% (per transaction).

To make matters worse, news reports—and even lawsuits—suggest that some traditional banks purposively manipulate the system to claim more overdraft fees. The prevalence of these overdraft practices is reiterated by articles appearing in Forbes and ABC News. The subject of burdensome overdraft is even touchier today amid the COVID-19 crisis as banks capitalize on unsuspecting account holders to make huge profits.

The Less-Discussed Benefits of Payday Loans

Contrary to traditional banks’ overdraft facilities, payday loans are structured to be transparent and upfront with their fees. Sure, the interest rates may be higher than the average APR of credit [...]

By |July 20th, 2020|Payday loans|Comments Off on Traditional Banks Vs. Payday Lenders|

Pros and Cons of Payday Loans

It’s rightly said that life is a rollercoaster ride, and the unexpected twists and turns can pop up at any time. Sometimes those instances result in unanticipated expenses that can place a short term strain on a household’s cash flow. Options are available to the general public to deal with financial uncertainties.

Payday loans are one such provision to meet the short term obligations. While the interest rate is high, these loans can be a tool to fill a short-term gap. While the option of payday loans may seem attractive, they need to be approached with some caution. Here we have compiled both the benefits and the risks of payday loans to give you a clear picture.

What Are Payday Loans?

Concisely speaking, payday loans are short-term high-interest loans. The borrowing amount ranges typically between $1000- $5000; they can go as high as $10,000. The paying tenure is between 16 days to 1 year based on the amount, paying capacity, and a range of other contributory factors.

Pros Of Payday loans

In situations that you cannot shoulder immediately like an unexpected medical emergency, payday loans can be beneficial. Given below are some of the pros of payday loans:

Instant cash: While banks require a lot of documentation and processing time for a loan, you can receive the money the same day with payday loans.

Ease of payments: Payday loans are effortless to settle too. The payment is automatically deducted from your salary account on your paydays or an agreed-upon date.

Cons Of Payday Loans

While your immediate obligations may be covered with a Payday loan, new debt is added. This debt can be scarier because of the relatively short time required for repayment. Some of the cons associated with a Payday loan are:

High-interest [...]

By |July 6th, 2020|Payday loans|Comments Off on Pros and Cons of Payday Loans|