Savings account payday loans
It is the middle of the week, and you need money fast. The problem is that you do not have any extra funds to cover for that unpredicted expense. More than often so many of us will experience this problem. It so happens, that the only solution that most would resort to payday loans (direct deposit). These are the debt instruments that are generally quite helpful to have. They are short term and will last as long as 45 days and 24 h. A typical loan will not be paid in amortization, but rather they must be paid in full upon the maturity date of the loan. Otherwise, a borrower has the option to extend it if he is not able to meet the payments.
There are many lenders who are both available in both online and retail stores. Technically, there are three basic elements and requirements that are needed for a person to be approved for the loan. Payday lenders require the borrower to have a stable job for at least six months, he or she, has to be of legal age and that the debtor has to have a bank account. In the normal application of the loan, the borrower will usually issue a check as a way to show collateral to the loan. Hence, in the past, it was required that the bank account should be a checking account.
However, nowadays, a savings account would often suffice for a borrower to be approved on the loan. Generally, the acceptance for the savings account payday loans is because of the new presence of better methods to apply and pay for the loans. As stated above, in the traditional setting, the mode of payment for the loans will be in the form of check issuances. With the creation of the online Internet lending, the borrowers are now given a newer method to pay for the loan.
This method is known as the electronic method of payment. This would mean that the payday loan lenders will be given that authority to debit from the savings account of the debtor the amounts due for payment. Technically, the account number will be already provided as the funds will also be released to this bank account. Hence, the lenders will ease the process further by offering the option to debit directly the payments. This will save the borrower both the time and effort in trying to remember the payments for the loans as this will be deducted automatically.
The new service of offering you payday loans with bad credit through the savings account will give the borrower the same benefits. As this is an online process, you will have the convenience and comfort to apply for the loan in your home. It can easily be applied for any time of the day and anywhere as long as the computer is connected to the Internet. This would also be a fast process as many would have the opportunity to get their money in just a few minutes. Plus, with direct deposit features, you do not have to go to the bank at all to process the payment or to get the funds.…
Payday loans may be discharged through filing bankruptcy
Because payday loans are an unsecured debt, they can often be discharged in Chapter 7 bankruptcy. (“Unsecured debt” refers to debt that’s not tied to any collateral property and therefore there is nothing to be repossessed and sold to satisfy the debt.)
Once a person’s debt is discharged, that means they are never responsible to pay on that debt again.
Payday Troubles? Find a Bankruptcy Lawyer Today
Meeting with a local bankruptcy lawyer may be a great way to put your finances in perspective and find out what options could be available to you.
We make it easy to find a Chapter 7 bankruptcy lawyer. Just fill out our free bankruptcy case evaluation form and we’ll do the rest.…
Alternatives to payday loans
Many consumers take out payday loans out of desperation because they feel that there’s no other way to pay bills, buy groceries or take care of other financial obligations. However, there are alternatives to payday loans.
Check these alternatives to payday loans:
• Use savings set aside for emergencies to pay for necessities can prevent consumers from accumulating large payday loan debts.
• Credit unions are sometimes able to help low-income or distressed consumers by offering short-term low-interest loans.
• Traditional banks may offer lines of credit or overdraft protection on checking accounts at a much lower rate.
• Credit card cash advances – they’re expensive but still not as costly as payday loans.
• Borrowing from friends and family members can prevent you owing an overwhelming debt to a payday lender.…
Payday loans – an expensive option
In states that don’t regulate payday lending interest rates and fees, these supposedly short-term loans often have annual interest rates of more than 391 percent.
Additional fees associated with payday loans hike the costs up even more and weekly payments must be made or penalties are added.
If a consumer is unable to make a payment on a payday loan, they have the option of renewing the loan in order to postpone the payment. This starts the process over with a higher original loan amount, which means more interest on the debt.
Some consumers who are caught in the payday lending cycle take out payday loans to make payments on other payday loans, creating an endless cycle of debt that can quickly get out of control.…
The dangers of payday loans
With the U.S. economy in a tailspin, more Americans are turning to payday loans to make ends meet. This is unfortunate because these predatory loans often spiral into an endless loop of debt that cannot be easily managed or resolved.
Instead of a consumer taking advantage of a loan offer, payday loans are quite the opposite. Payday lenders often take advantage of the desperation of their customers.
Fortunately, lawmakers have already recognized the financial dangers of payday loans.
Congress has imposed a 36 percent interest cap on post-dated check type loans to military personnel and payday lending has been completely banned in Georgia and North Carolina.…