Direct Payday Lenders Online: Payday Loan or Credit Card?

Direct payday lenders online offer a valuable resource for consumers who find themselves experiencing short-term financial difficulties during tough economic times. When a car breaks down, a tooth needs to be filled, or bills are higher than expected, getting an advance on your paycheck may be a better option than reaching for a credit card. Having options is what helps us make good choices but when it comes to money, it’s important to know all of your options and what kind of effect your choices will have on your finances.

While credit cards may seem “easy”, paying them off after you have relied on them one too many times can be just the opposite. Of course, the decision you make may be a matter of economics. Using plastic credit is an option but remember, unless you want to incur interest charges you must pay back in full what you charge when you receive your statement. If you aren’t able to do so, your balance will only grow as interest (and possible fees) are tacked on over time. Credit cards are known to carry some of the highest interest rates of all types of credit and can ultimately cause what you to pay double for something, depending on how long it takes for you to pay them off. While the credit card companies do nothing to discourage you from “charging it”, you may be putting yourself into a dangerous position financially. This type of credit can end up turning into long term debt when all you really wanted was some short-term help.

Fast cash payday loans, on the other hand, can help with emergency cash needs but close the door on an open-ended line of credit when used responsibly and wisely. These types of small-dollar loans are meant to be acquired and paid off quickly; strictly for temporary financial needs. While credit card companies require only a minimum payment every month, potentially causing you to be in debt to them for months or even years, payday loans require you to pay back what you borrow the next time you get paid. Therefore you are able to take care of that last minute trip to the dentist or that unforeseen car repair when needed, but pay back what you borrow as soon as possible. So often it seems like these financial mishaps happen a few days before payday, when there is nothing left to draw from you bank account. There are even times when a utility bill or insurance premium will come due before you get paid because of the fact that the billing cycle has fallen out of sequence with your pay cycle. Turning to a payday loan may be just the boost your checkbook needs to see you through until your paycheck goes in the bank.

There is also the issue of the fees and/or late charges that can be tacked onto your credit card should you be unable to payoff your balance in a timely manner. If these charges assessed by your credit card company are going to be more than those of a payday loan, it may be the wiser choice to take out a short-term loan with a payday lender and pay it off quickly versus being charged a small fortune because it took so long to pay off that credit card.

The bottom line? There will be times when using your credit card is the most appropriate choice for your particular financial scenario. Keep in mind that paying the balance off every month is essential to successfully managing your expenses. In doing so, you can use credit to your advantage while taking care of that last minute bill or emergency expense. However, if you are looking for fast cash but don’t want to turn to your credit card, seeking the help of direct payday lenders online may be the most economical choice in the long run.

The Pitfalls of Payday Loans Every Borrower Should Know

Payday loans are credit facilities that are designed to be advanced for short time frames. The concept of ‘Payday Loans’ is not a new one, especially if you live in the western part of the world. There are numerous debtors who prefer to avail this facility and borrow money during exigencies, preferably repayable by the forthcoming payday. But is the picture so rosy? Like all other private lenders, payday loans also have some hidden facts and dubious lending practices that can easily trap a gullible borrower.

Here is a list of unfair practices that your payday lender will never reveal.

  • Exorbitant interest rates

Payday loans are available under the cloak of easier lending terms, quicker processing, flexible repayment terms and waiver of credit checks. However, all such good things also carry an interest cost in the form of ‘Annual Percentage Rate’. This interest rate can extend up 700 percentile of the loan amount and increase the financial liabilities of a borrower.

A borrower should crosscheck and compare the interest rates between various lenders and negotiate for lower rates of interest before accepting the loan offer straight away.

  • Loan rollover charges

Payday lenders offer a rollover of the payday loans, when borrowers fail to repay debts in time. However, a borrower fails to understand that this helpful tendency has rollover costs attached to it, which is enough to squeeze blood out of the body. The borrowers fail to realize the increase in liabilities when they are mesmerized by the sweet words of the lenders.

  • Trap of multiple loans

In several instances, a borrower fails to project the exact cash requirement and ends up borrowing lesser money. When the borrower approaches a payday lender for add-on credit facility, he also pays excess lending charges for the increased loan value. This extra fee is added in small letters in the loan contract papers which borrowers fail to read.

  • Check bouncing penalty

A payday lender can charge hefty penal charges during instances of check bounce or rejection of auto debit transactions. This penalty might extend to a quarter of the outstanding loan amount.

Apart from this, all payday loan agreements contain a clause permitting the lender to initiate legal action upon non-repayment of instalment within a week of check bounce. The penal charges combined with debt can even sum up to twice the loan amount and trap the borrower in a vicious circle of financial and legal problems. Thus, a borrower should ensure that sufficient funds are available in his repayment account on the installment day.

  • Corporal presence of the payday lenders

Not all payday companies have their physical presence in the area of operation. Most of them are either shell corporates which cover up their individuality with false business labels or offshore corporates which have their registered offices at tribal lands or places like Costa Rica etc. Such entities are exempt from all federal regulations and hence, it is highly challenging for the borrower to sue the lender on charges of illegal practices.

A borrower should ensure that his payday lender has a corporate office near his place of residence or at least in the same country. He should utter cautious about outstation lenders or online lenders with no specific contact details. The registered lenders might undertake certain identity and credit checks, but they are governed by the state regulations. This can be beneficial to the borrower by providing lower interest rates and other related fees.

The Office of Fair Trading has also taken stringent action in 2013 and several lenders have either shut down or withdrawn their lending business. However, a borrower should also exercise caution while availing a payday loan, whether it is online or store front office.

Use Payday Loans Until Your Budget Supports Itself

Are you considering using the best payday loans help to make it through to your next paycheck deposit? You are not alone. Many people struggle thorough overwhelming debt this time of year. Between regular expenses, holiday debt additions and working through the tax season, finances are stressful. Hopefully you are one of the many who will receive a return this year from the IRS. Will you still need to apply for a short-term loan once you get your return? Are there any other changes you can make in the process to help cut down the demand on your monthly budget?

Since payday loans are designed to help with emergency payments, these lenders provide an easy application process to accommodate stressed out borrowers. No one wants to painstakingly fill out endless forms when all they need and want is to take care of their impending costs.

Besides a tax return, you could use a holiday bonus or a cost of living raise to build up a savings account or break down debt totals. It is important that you don’t ignore your debt. Just the savings from less interest each month will give more to save in the long-run. If you do have old payday loan lender accounts left unpaid, take care of them first. The short-term cycles provide a punch to your bank account. Clear out high debt as a priority even over saving. This approach may sound odd, but a savings account would do more for you once high interest debt is out of the equation.

It is always good to watch out for spending traps. Buying more just to earn reward points is never a good idea. Those creditors sure know how to trick you to choose their cards over others. A payday lender would never suggest using their short-term loan just to spend more. It is never cost effective. You are better off waiting or going without in order to protect your bank account from a spending trap. Marketers get paid good money to advertise well. There is no doubt that the company earns every penny back when new customers come in to buy or apply. Pay attention to your credit cards and focus on ones with low or no interest. Limit what you purchase and pay it off as fast as possible.

This strategy sounds like the concept behind the payday loan provider’s philosophy. Only use what you absolutely have to and pay it off quickly. This keeps long-term interest costs from siphoning cash from your account. Short-term loans should never be kept out for too long and neither should credit card balances. Yes, it is important to build a savings account. This money will help to prevent you from relying on third party cash. It is extremely important to omit current debt demands in order to free up income to both support emergencies while building a safety net for later.

Comb though budget costs and find more ways to decrease the demand. As debt gets paid down, you will see your credit score creep into a positive position. Keep this up and your financial future will save you more. It will feel good to have low interest credit offers come your way once more. You can transfer old high interest accounts to new low interest ones and save more. Your monthly payments will make more of a difference in lowering the balance when interest isn’t consuming the major part of each payment.

Commit to change and get it done. It will feel good to make a difference in debt this year. Next year, who knows! Maybe your return could be used to reward you for staying the course.

Payday Cash Advance: Strategize A Quick Payoff

Managing a budget is not always the easiest thing to do no matter what your income is. Most people lie within their monthly take-home pay, but when unexpected costs arise, third party money is often used to cushion the blow. What better way to fix a money emergency by using someone else’s money and deal with it later, right? If you make a habit out of this, your budget is bound to suffer. Using credit cards or seeking a safe payday cash advance from an online direct lender will help the impending problem. When using outside cash, it is important to keep that debt around only long enough for your budget to handle the payment.

Properly handling the payment is to pay off you debt in full or at least pay the fees plus a good portion of the principle balance. Your finances may need a few pay period s to group together the money needed. It does cost more in finance charges, but the fees decrease along with balance payments. Minimum payments to direct cash lenders will cover the finance charges and a creditor will have a very small portion of that payment applied to the balance. The longer you keep any balance left unpaid for a long period of time the more income you waste on interest charges. The convenient cash just got very expensive at that point.

If those minimum payments are not made on time, borrowers will have late fees added to the balance. Your loan is now growing and will in turn accrue extra finance charge the next due date. If you are working with a creditor or direct lender that has additional charges or consequences for missed payments, you will be kicking yourself for not reading the fine print more thoroughly. It is so important to understand the terms and conditions for any third party money prior to accepting the funds. It is the best way to safeguard your future budgets. The more your balance grows with fees and increased finance charge rates, the harder it is to pay it all off.

When your debt is unmanageable, it is best to focus on the highest interest one first. In such a case, if you have outstanding debt with direct payday cash lenders, it is imperative that you pay that debt off first. You may think it isn’t as important as credit card debt, but in thinking this way you are very wrong. Shorter terms means the charges come around more quickly as does the length of time a lender will wait to get paid before selling your loan off to the collections agency. Default debt is all the same once it hits your credit report. Pay the minimum on all other accounts and attack the fast cash advance balance with vengeance. Do what you have to do to pay the balance down as much as possible. You will soon feel the relief of smaller finance charges and be able to conquer the debt in full. Once that debt is gone, use the money from this payment onto the next highest interest rate account. Continue this debt payoff strategy until your budget recovers and bad debt is gone.

Get one step ahead of yourself when you use third party debt. Have a payoff plan ready to go. You won’t feel as fearful with ongoing debt problems when you can foresee the payoff ahead of time. Cutback other budgeted areas, return bottles or raid piggy banks to relieve your next pay period from additional debt demands. If you can, work at limiting the use of third party money in order to keep your income to yourself.