Payday loan has a great number of other names – salary loan, payroll loan, emergency cash advance loan, small dollar loan and so forth. In general it is an unsecured loan issued for a short period of time. As it is a risky act for a lender the interest rate is higher than for a secured bank loan.
There are so many terrifying stories about people taking such loans and then unable to repay because of huge debt that many of us are simply afraid of non-bank organization offering cash loans. To be honest, sometimes such companies act like criminals – they approve loan applications, issue money and then start charging all kinds of hidden fees and commissions. Usually it is enough to go to the police – loan companies don’t want problems and in such cases they usually give up.
Payday loans are prohibited in some countries and allowed in the others. Somewhere such companies are kind of semi-legal. As for the USA we get a very curious situation here. Actually, the status of payday loans is different in different states. Let’s take a closer look at that.
One can easily and legally take a short-term loan in 32 American states. It would be too long enlist all the states here, so let’s just assume that fast cash loans are available on more than 60% of the US territory.
Anyway, there are nuances and peculiarities in each and every state. We highly recommend you checking that for your location in particular. For instance, inhabitants of Washington are allowed to apply for instant loans, however the number of such loans is limited to eight payday loans per year.
Some states have restrictions for the amount of money borrowed, for interest rate and so on. So please be attentive and do not make snap decisions.
It is impossible to get a short-term cash loan in eighteen American states including New Jersey, New York, Georgia and fifteen more. Such a decision is typically made by the local governments because of poor crime situations. There is always a risk that such loans would be used for money laundering or that local gangsters will rob fast loan offices.
Finally, state governments are worried about their citizens who may trust a fast loan company, borrow money and fail to repay due to high interest rate.
By the way, in some states of these 18 one can borrow money for short-term from non-bank organizations, however the interest rate should be below the set level. This level is different for every state and somewhere it is so low that loan companies have no commercial reason to operate there.
Colorado, Maine and Oregon are three states where local governments are still discussing the maximum interest rate allowed. Right now loan companies are eligible to issue loans with much smaller interest rate than in the 32 states where cash advance is fully allowed. There are also disputes about the minimum period of a loan. Please check the most relevant information for your state prior to applying for a short-term loan.
One may say – if you want to save money, just start earning more and spending less. Undoubtedly, this is an axiom and we are not going to object it. Vice versa, the goal of this review is to help you find new ways to save money without sacrificing convenience, time or anything else.
Take lunch in a box
How much do you pay for lunch? We bet you spend over $30 per week on the meals of doubtful quality and value. Taking lunch from home is not just a good way to save a bit, but also a guarantee that you know what you eat. Of course, it’s up to you to decide whether saving $120-140 per month is worth spending extra 5 minutes every evening on packing lunchbox.
Set aside every month
Introduce a new habit – set a certain amount aside every month without delays and excuses. Just create a new account and make automatic transfer in your online bank. You may begin with $30 and then increase the sum to any number you like. You will quickly see how it is actually easy to spend less.
Put clear goals
Having a clear goal in front of you makes money saving more pleasant and easy. Do you want a new car or a bigger house? Maybe you have been dreaming about a brand-name drum kit? Just make a saving plan for it! Don’t rush for no credit check loans in Louisiana right away. Just prepare your payment plan, save some amount of money and make your purchase.
Keeping in mind the debt or outstanding payments you may see your self-esteem shrinking and disappearing. Stop doing that! It will never help you! If you need to pay for a loan and suffer from lack of money two things are obligatory – keeping optimistic mood and following a financial plan.
Follow the plan
Yes, a well thought-out financial plan is just a “must have” nowadays. Determine for yourself what parts of your monthly budget is spent for this and that and try to follow such a plan for at least few months. If you see that the plan does not work well on practice – don’t give up. Just add some amendments, change the plan and keep on following it.
Another effective way to increase savings is to look around for career opportunities. It may be a part-time job, a project or seasonal employment. Take advantage from extra earnings unless work takes too much time from you. Just try to catch the balance between work and rest.
Don’t cosign loans. It does not matter if a loaner is your best friend or even cousin. If they fail to pay your credit score will suffer a lot. Do you need this risk? You do not.
Poor credit history is one of the worst things for a typical Westerner. We all live on tick because it’s nearly impossible to make big purchasing without borrowing money. The best loan offers are available only for the people who have good credit score – the others can be easily refused by banks.
One should be very cautious about taking loans – if you borrow more than you are able to pay back it means that you are under the risk. A loan delinquency that seems insignificant to you – 1 day delay, let’s say – still has negative impact on one’s credit history. Longer delay has much worse consequences.
Sometimes it happens that one does not pay a loan back at all – there are lots of cases of individual bankruptcy. It is not a secret that some borrowers overuse this opportunity. Well, individual bankruptcy can help get rid or a loan, but it will certainly decrease your credit score. Banks are not happy about giving money to people who may go bankrupt again leaving high and dry.
We highly recommend using this option with individual bankruptcy only in a situation which is really tough.
The most obvious solution is to take a low-interest loan in order to pay back a high-interest debt. Without a doubt, such a step will have positive influence on one’s credit score. The thing is that if you need to repay an existing debt – for instance, a credit card debt – it would be rather hard to obtain a low-interest loan from a bank.
Undoubtedly, a payday loan in Wisconsin or any other state will be the best solution here. Non-bank companies do not really care about your credit history. Typically they issue loans with very high interest rate, but if you pay back in time the total amount overpaid will certainly remain in reasonable limits. So if banks reject your loan applications – don’t give up and get an instant cash loan.
A big mistake is to borrow less than you need for debt repaying. Do you want to pay for two high-interest debts at the same time? So take the amount allowing you to repay the existing debt right away, without any delay!
Paying for an overdue debt is a great lesson for anyone. We cannot control our life fully and it always makes sense to spend a bit less than you actually can afford. People do right the contrary and in the end find themselves unable to repay their loans. Sudden expenses related to health issues, broken car or any other unexpected things make the situation even more dramatic.
Stay cool when it comes to spending. Buy smartly and resist the temptation to get something you do not actually need at the moment. These obvious, but incredibly useful tips will help you avoid the debt hole and terrible stress for you and your family.