News On Payday Loans

by : John Hilaire

Abroad news is out about payday loans. The lenders design the loans to help people out in emergencies, yet the news tells us that the loans are sending people to bankruptcy court. People are taking out payday loans and finding it difficult to repay the loans on the term date due. Most lenders allow up to two weeks to repay loans, while others give a little more space for paying back the loans.

Still, in fifteen states payday loans are outlawed, since the state reps are angry that lenders are coming up with an idea that is causing financial difficulties. The loans are suppose to help out in difficult situations, which at times the loans will, however the loans are sending people to the bottom of poverty.

Utilities are one of the most expensive problems in the system. If utilities are
not paid the shutoff, notices start rolling in. If your lights and/or energy are shutoff, the providers will charge a fee to reconnect the services. In the middle of winter without heat and no money, thus payday loans can offer a way out. Anyway, you go, someone is going to take money from you, regardless of your situation. If you have shutoff, notices check with your state, since some options are available outside of payday loans.

Some states have agencies that will pay your utility bill to prevent shutoff notices. Social Services and some churches offer help when times are hard. Check your options and pull out some resources before applying for a payday loan.

Car troubles are a different story. If you have a mechanic in the family, or a friend that works in the mechanic industry you might have a way out. Unfortunately, many mechanic shops are expensive, charging outrageous prices, which put them in the category as payday lenders; however, repairs at times are unavoidable.

Vacations are nice, but if you feel you are lacking funds to take a trip, you might want to wait and save up the cash to go without a payday loan. Otherwise, plan a trip you know will not cost a fortune.

Bank overdrafts are in line with payday loans. The bank sharks will charge higher fees than common payday loans. Bankers are in the market for making money, as anyone else in the world, thus the bankers will charge $30-35 for insufficient funds, and daily charges for the length of time the check is not reimbursed. As you can see, the payday loans can come in handy at this point. Still, you will experience overdrafts, since if you borrow $300 you will pay $60 along with the $300 back to the lender. If you do not have the funds on the set date the money is due for repay, thus you will pay another $60 and roll over the loan amount.

One person paid over $500 on a payday loan the amount of $300, since the person could not find the funds to repay the debt. Outrageous!

Still, other people have paid lots more on payday loans. In fact, some people were threatened to jail because the funds were never available to repay the loan amount. As you can see, payday loans are high-risk loans. While the loans are short-term and unsecured loans, the advances rarely offer anything other than debt problems.

The news on payday loans continue with the remarks that payday loans is a form of loan sharking. If you think about it so are other forms of loans. Living in a no win system, payday loans can still provide an option that is livelier than other options.

In conclusion, we can think of a few options that can help you avoid payday loans. If you have low income and paying high fees for rent, consider the low-income homes. Otherwise, check with HUD, since loans are available to those with low-income with no upfront costs.

If you are struggling month to month, consider applying for a job that will pay you what you are worth. Unfortunately, we live in a greedy system where everyone is out to take the other man. Start thinking and take back what rightfully belongs to you!