About100DayLoans.com

According to the findings of a survey, about a third of all students have to depend on payday loans, credit cards, and overdrafts to fund their university education. Many of them were depending solely on cash loans. The Future Finance research discovered that as many as 31 percent of the students have to depend on these sources for covering their university expenses. The study was carried out among 1,000 full-time students.

63 Percent Students Taking Payday Loans Understand Financing Matters

Researchers also discovered, after talking to these students, that more than a quarter did not consider a payday loan to be a kind of debt, because of its short-term nature, and the small amount borrowed. Interestingly, 63 percent of the students who were questioned said they have good knowledge of finance, while the others conceded that their financial understanding could improve.

For instance, many of these students did not know what the Annual Percentage Rate or APR stood for. However, these students were a minority. Most of the researched students had a decent understanding of finance. Payday loan critics have often said that one reason why there is such a huge demand for these loans is because a big section of the population does not understand finance and how to manage money efficiently. That is clearly not the case, as evident with the findings of this research.

A natural question to ask is – So, why are these students still taking payday loans? They are doing so for two reasons. To cover their university expenses, and also because these payday loans are not causing any burden to them!

Payday Lenders Agree

Payday lending agencies across the United States have been saying just this, and trying to convince the critics for a long time now, even as they are convinced about the need to pass stricter legislation. The quick-cash or payday loans are not a problem for a majority of Americans, and that’s why a huge majority of them pay it back in time, every time. It’s only a small fraction of people who default, but that’s the case with every type of loan. So why single out the payday loan businesses?

Even imparting financial education or showing them how to manage money in their daily lives may not be enough. Remember, 63 percent of students who are taking payday loans already have good understanding of finance.

The Parents Need To Be More Pro-Active

The survey faulted parents for not showing positive financial example, at least to the other section of students, who lack the knowledge. University is a critical time for them because this is the first time they have to make financial decisions, and must stand on their own feet financially. This is a big change in their lives.

81 percent of the parents said they are qualified to provide financial educations to the children, and yet, only 39 percent of the students said they are receiving this from their parents. There is thus a gap here. Parents clearly need to do more to better prepare the students for their university days.

Getting a Traditional Loan Is Very Stressful

The report also suggests that most students, and also their parents, find the process of getting a student loan extremely stressful. In fact, they said it was more stressful than the process of applying for college. Three out of four students said they do not know how the loan process works, and many indicated little knowledge of the terminologies. What paperwork would be needed was also unclear to most of them.

Applying for a payday loan, on the other hand, is as easy as 1-2-3. Often, the loan application can be made online, removing the need to visit a traditional lender and stand in long queues. There is little paperwork. There is no checking of credit score. Finally, the loan amount is disbursed quickly, usually within 48 to 72 hours.

Many students are turning to payday loans also because of the convenience factor, and because they understand this better.

No Long-Term Debt is a Good Thing

What happens when a student passes out and gets employed? Obviously the loan amount has to be repaid. The person is just starting off, and so, in most cases the pay would be low. Never mind that, the loan must still be repaid, which means that for a considerable period of time, there would be quite a bit of financial pressure.

A payday loan, on the other hand, is much easier on the pocket and for the future. There is no long-term debt, as these are short-term cash advances. So there is no pressure to repay after clearing the exam and getting the job.

ObamaCare Worse Than Payday Loans

Meanwhile, some observers have pointed out that ObamaCare charges an interest of more than 100 percent when the working classes accesses its own money, unable to find affordable options, and ending up staying uninsured. The payday loan industry’s interest rate in every American state is way less than this. But the Consumer Financial Protection Bureau or CFPB would still target these valid businesses.

The intentions of ObamaCare were noble. It wanted to make coverage accessible and affordable for those with pre-existing conditions and people with low income. But it didn’t work out that way eventually. About 8 million people have been penalized a total that exceeds $3 billion. Politicians have supported ObamaCare, even though it will charge 3 percent pre-tax income from people who earn modest wages.

But when it comes to payday loans where the charge is way less, the lawmakers still want to pass legislation to make it stricter. This doesn’t make any sense.

The Tide Is Changing

But the tide is changing now. Many people are speaking up now from across the country, saying good things about payday lending, and how they help everyone – a student going to university, a housewife trying to meet both the ends, a poor or middle-income worker go to work, and how a parent can use the money to pay his bills or buy urgent medicines.

Sure enough, the US has the most number of billionaires in the world, more than double of China that comes in as second. But there is another side of the country that is not discussed that much and this makes the more common picture.

A lot of people have little savings, with less than perfect credit scores. Many of them don’t even have a bank account. So there is nowhere to turn to if there is a sudden emergency. Payday loans help them carry out car repairs so that they can go to work and earn money, pay up their bills, buy medicines, and for many other valid reasons.

This is why there is such a huge demand for payday loans. People in Alabama took two million payday loans in 2015, with an average of eight loans in the year. It’s much the same in many other places in the United States.

Very few people, including the media houses, were betting on the Republican candidate winning the vote. But the election results surprised them all. Donald Trump is now the new president-elect of the United States. Every new president comes in with his own beliefs and policies. So what is he likely to do for the payday loan industry and lending business in general? Let us find out.

Consumer Lending Could See Big Changes

While on the road, Trump had said many times that he is going to cut lending regulation and make it easier for both businesses and the people. This will surely be a big relief for the many payday businesses that offer these short-term loans, and about time too, as many of them have been winding up off late, unable to cope with all the regulations that have been passed in recent times, and the pressures that are often quite unjust.

In the meantime, consumers across the country have been flocking to payday lenders for the quick cash relief they need in an emergency. For instance, last year, people in the state of Alabama took more than 2 million payday loans. It’s an urgent requirement in the Mississippi Delta, and in many other parts of the country as well. So it is clear that there is a need for payday lending and a huge demand for it.

There will be a lot of trouble, even bankruptcies if people cannot get the money they need in a real emergency. There will be loss of income too, if for instance, there is no money to fix the car that has broken down. The person may even lose the job.

Columnists, attorneys, and many others have been speaking out for the need to control, and even reduce regulation, because large sections of the population cannot survive without payday lending. There is simply no alternative. A lot of people are still not in the banking system. Most banks won’t issue such short-term and low amount loans, and also because many applicants have average to poor credit score.

Stocks of Lending Agencies Go Up

The stocks of payday lending businesses and firms that offer such loans, such as OneMain Financial, Enova International, and World Acceptance went up on Wednesday, and on Thursday morning again once the election results made it clear that Donald Trump was becoming the next US President. The market is clearly seeing a cut in regulations to make it easier for these legal businesses to operate.

Investments are pouring into these stocks, a clear sign that these businesses are likely to do better after a Trump win. John Hecht, who is an analyst with Jefferies says, “There is a very clear regulatory relief rally”.

The CFPB’s Wings Are Going to Be Clipped Soon

A lot of people are saying that once Trump moves into the White House, he is going to clip the wings of the Consumer Financial Protection Bureau or the CFPB.

The Bureau was created by the Dodd-Frank Act, after the financial economic meltdown of 2008. CFPB’s mandate was to write rules for credit products such as short-term loans and mortgages. But many things they have done haven’t been liked by a lot of people. So there have been talks of overhauling the Consumer Financial Protection Bureau.

This may finally happen with Trump in the White House. In fact, he has said before that he wants to abolish the Dodd-Frank law, though it is unlikely that the bureau will be eliminated altogether. Some observers feel that his team may instead remove its director Richard Cordray, and get someone whose ideology matches his thinking.

Trump wants a commission of five members to take over from Cordray, once congress approves, of course, which too is with the Republicans, and so may not be too much of a problem. Democrats have opposed this fiercely.

Court Rules in Favor of the President

A panel of judges at federal appeals court ruled recently that the president should be able to “supervise and direct”, and also fire the director. So Trump has the power to do this. But the agency has already said that it wants to appeal this court ruling.

Cordray is expected to fight back, though, and this could mean and expensive and lengthy lawsuit. His term is till July 2018.

How Will This Affect Payday Lending?

With Cordray gone, and new thinking in the Consumer Financial Protection Bureau, life for a payday lender is likely to be easier. But most of the regulations passed by lawmakers in the different states are likely to stay, and most payday lending businesses are OK with this. It’s a legal trade, where most of the businesses are ethical. Most lenders will always comply with the state and federal laws. There are checks and balances in the systems already to ensure this.

A huge majority of consumers pay back in time as well, so there is essentially nothing wrong with the system, like some critics want you to believe.

Payday lenders just don’t want more laws that are going to choke the industry to such a point that the lending agencies have to wind up their operations, which again is not going to help anyone. People in need may end up taking loans from illegal sources that charge way higher interests.

No matter when Cordray goes, one thing is looking very likely post the election results. The Trump presidency is going to curb CFPB’s supervisory, rulemaking, and enforcement powers, which is going to be good news for financial institutions such as payday lending agencies.

Income of Customers May Not Have to Be Verified

Payday loan companies approve short-term cash loans without checking credit scores of their customers. To get a loan, all you have to do is just have a steady source of income, an account in the bank, and be a citizen of the US. There is very little paperwork.

However, the Consumer Financial Protection Bureau has proposed that all payday lenders should verify the income of loan applicants before processing the amount.

Payday lenders have opposed this, because it would beat the very purpose of the loan. Typically, such loans are issued within 48 to 72 hours, which is what the people need, as they are in a financial emergency, and need cash, if possible, today. With this verification, the process is sure to become lengthier. It can go into several days as well.

With the new administration in Washington D.C. and a changed Consumer Financial Protection Bureau, this may not be a necessity any more, thus saving a lot of trouble for both the payday lenders and applicants who want the loan quickly.

Many professionals, including communists and a notary public in California, and an attorney in the US state of Missouri, are defending payday lending, even as the industry is under threat from the lawmakers in Washington and other critics. The common complaint is that, payday lending leads to a debt trap. However, there are others who are convinced that these small-dollar loans are the only option for a vast majority of people in the United States, particularly those who have little savings.

The Case in California

A prominent notary public in South Carolina has questioned why every time something actually works for the little guy, there are government bureaucrats who will try to take it away? Cranford T. Rigell wonders if the government understands that there are people out there with real needs, and sometimes these people require help.

He was referring to the payday loan industry, which is increasingly under threat because of the ever increasing government legislation and stricter regulations. At least one columnist in a major California magazine has supported Cranford.

Cranford says most Americans need a little cash almost every month to see them through the next paycheck. He complains that the federal government wants to take it away, leading to a severe cash crunch situation for most families.

He presents his own case as an example. Cranford says that as a Notary Public, he doesn’t have the status to get an on the spot loan from a bank. So he is left with no other option but to get a payday loan. According to Florida law, he cannot take more than one loan at a time, which is good, because it protects consumer interest. He takes small loans once in a while, and pays it back within a couple of weeks.

There are laws in other states as well that protect consumer rights. For instance, in Florida, the loan amount has to be equal to or less than $500 at any time. Also, the fee cannot be more than 10 percent. So there is legislation already. Do we need more legislation and restrictions? Probably not!

No Money for Car Repairs Means No Work, and No Pay

Cranford says he wouldn’t be working if these loans were not available. “How am I going to get the money for car repairs? I wouldn’t have been able to get to work — meaning I wouldn’t have gotten paid”. Sometimes priorities make it necessary to take a payday loan, he adds. Cranford and the millions of others in the state of California and elsewhere in the country are OK with the small fees charged. These small dollar loans cannot hurt you if you are careful about paying back on time.

Of course, there can be many other sudden emergencies too for which people need money urgently, such as pending utility bill payments, guests arriving without notice, rent payment, or medical emergencies that cannot wait. Banks will take their time to give the credit, if at all, so they are quite impractical.

Plus, there is a huge section of the population that is even to this day, scared of the big banks. They would rather shop with their neighborhood store and a person they know personally and meet every day.

The columnist in California even says that not only is a payday loan the best option for the little guy in the state, it is often the only option. Most payday loans are advanced for sums between $300 and $1000. That is too little money for most banks, and naturally they are not interested in making the advance. Whatever alternative proposed has not worked. This leaves a lot of people with just one option, payday lending or quick-cash loans, which many lawmakers are trying to take away.

It Is the Common People Who Will Suffer If Payday Loans Are Shut Down

A few elites in Washington and elsewhere have already imposed strict guidelines and restrictions on payday lending. As a result, the number of payday lenders across the country has come down drastically, sometimes by almost 50 percent in some regions. But they are not satisfied yet. They want to adopt new laws that will end up shutting down the operations of many other legitimate businesses.

Who suffers? The consumers, of course! The little guy naturally!

It is time to realize that people are thinking individuals and responsible citizens. They know what is good for them. That is why a huge majority of people pay back the loan in time without defaults. Absolutely no one wants to stay in debt forever, and the chance of a debt with payday loans is actually minimal as the loaned amount is small.

Cranford T. Rigell signs off by saying, “We are not idiots”!

Do not punish the hard-working people who are trying desperately to make ends meet. There are enough people to punish in the corporate world and others.

The Case in Missouri and Indiana

Robert Swearingen works as an attorney in Missouri. He offers free legal help to the elderly and low-income people in eastern Missouri. Robert has worked with hundreds of individuals who have taken payday loans and says that, “The stories are always the same. These are not loans of convenience. These are loans taken out of desperation”. Without the money, these people will be in a lot of trouble. Banks will almost always deny them a loan. Many of them have poor credit.

Robert says that in his experience, he has seen a percentage of people who take payday loans are not able to pay it back on time, but points out that this is the case with all types of loans. So why single out payday lending, he asks, particularly when there is really nothing to replace it.

But the industry is being threatened, because payday lending is under such a scrutiny that many businesses are shutting down in Missouri as they are feeling hassled. This may not prove to be a good thing in the long-term, Swearingen adds. Many more individuals are likely to be forced to declare bankruptcy. Crime and looting could go up.

Quite a few people agree with this point of view, including Todd Roberson from the Indiana University Kelley School of Business. He is a senior finance lecturer in Indianapolis. Todd says that the fallout of payday lending closing down because of more restrictions could prove to be very severe. We may not be ready for this yet.

For instance, many customers could end up borrowing money from riskier places. Roberson says, “Putting it out of business will simply drive it underground into the hands of gangs, local crime bosses or worse”. Payday lenders, on the other hand, are legal businesses that follow all government regulations. They follow employment as well as financial disclosure policies. Customers can ask for an extension if they cannot repay on time. There are regulators looking into every deal closely.

On the other hand, if you take money from undesirable sources, like criminal elements for example, these people are going to handle a default entirely differently.

Time will tell whether anything can be developed to replace payday lending. But as things stand now, millions of Americans depend on these quick-cash loans, so it would be a huge mistake to create hurdles. The lawmakers should actually make it easier for people to get the money they need, while monitoring and regulating everything.

Conclusion:

It is good to have laws against bad practices in payday loan industry. We are also against them, however payday loan is the only way and ray of hope for people who find it really hard to make ends meet. There are millions of them in US. Therefore it must be allowed with good lending laws.

Let us be frank. It’s always best to have an emergency fund for all those times when you may need some extra cash suddenly. Life gives us unexpected moments. Even small amounts such as $500 or $1000 could help us immensely. But the reality is, very few people can maintain an emergency fund, because they are busy meeting their everyday expenses, and saving for the future.

So what do you do if you suddenly have to make a payment, but don’t have the resources? You can always take a payday loan or a cash advance loan. These short-term loans will give you immediate respite. You pay back only after the next payday. These loans are easy, quick and convenient.

But before applying for your payday loan, do consider all your options.

Consider the following points before taking your cash advance loan.

1. Are you ready to take financial responsibility?

When you are taking a loan, whether it is for the short or long-term, you are making a financial commitment to pay it back. Are you ready for this? Up to this point, you may have led your life in a certain way where there was no commitment to make big payments apart from your utility bills. But now, once you take the loan, you will have a creditor in your life that needs to be paid back. So you might have to make a few curtailments to save money. Cut the coat according to the size.

A payday loan is the best option, because you take the money for just a few weeks. The amount is also less. So you end up making small adjustments for just a short while.

2. On payday, your entire loan money will be deducted from the bank

Payday loans are small cash advances to see you through till the next payday. However, on your payday, the amount you have taken is going to be deducted entirely from your bank account directly. So next month too, you will be a little short of cash. But you have successfully dealt with the emergency. So it’s good to plan well in advance so that you can deal with the situation efficiently. Slash all the avoidable expenses for a few days so that you don’t have to take another loan in the next month.

Also remember, take only the money you need. No more! This way, you don’t have to repay more than you have to.

3. Seek an extension if you cannot repay on time

Most people don’t know this, but the fact is that, you can actually ask for an extension if you are unable to repay the money after payday for some reason. But make sure that your lender is a member of the CFSA (Community Financial Services Association of America), because there are a few businesses that don’t like to mention this upfront.

All CFSA member businesses will have to offer you time till the next four paydays to repay the due amount, and that too without any extra fees, if you are unable to repay on the initial agreed upon due date. Nobody can force you to pay back. All you have to do is just ask for the “Extended Payment Plan”. Look for the blue oval CFSA logo in the website or at their physical office of the lending company before taking the loan.

4. Money management classes

In recent years, severe restrictions have been imposed on payday lending businesses across the country, though millions of people are still taking these loans. Critics have accused that payday loans can go out of control when the debtor is unable to pay back.

Some payday loan businesses are now offering money management classes and tutorials to help their customers learn to manage money better. Though students in 17 states get finance training in their high schools, a survey of the council of economic education has found that there is still a huge dearth of financial knowledge. So it might be a good idea to go for this training. Any help is after all, always welcome. The financial knowledge you gain will surely help you in the future.

5. Take a loan for a longer term

Cash advance or payday loans are typically just for a couple of weeks, till your next payday. The amount is about a $1000, a little more or less for immediate financial emergencies. However, there are a few lending companies that are now offering loans for a longer term as well. It is still called a payday loan, but you get the money for 3 months or so. But you need to choose this at the very beginning.

6. Take the loan for the right reason

You should realize at the very outset that a short-term cash advance will not satisfy all your needs. For instance, you cannot, of course, purchase a new home or a new car with the money you get, because you will not get a lot of money from these lenders. On an average, these loans are about $1000. You cannot even go on a long vacation with this kind of money.

A payday loan is for emergencies. Perhaps you need it to pay your utility bills or sudden medical expenses or for carrying out emergency car repairs. It’s not to buy a new gadget or television set. You should use the money you get from the payday loan wisely.

7. Always talk to your lender before taking the loan

Even if you are dealing with an online agency, make it a point to talk to them always before taking the loan. That way, you will know who you are dealing with, and will be more certain of the provider. Check the website to see whether there is any contact information. You should be able to communicate for any clarification you need, or in case there is any complication. Remember, there will always be some businesses, in any industry, which is not that ethical. Ask for the terms and conditions clearly and be sure about them before taking the final decision. You should know the interest rate clearly and the payback policies. Ensure that the lending agency is licensed in your state. Every state has different rules governing cash advances.

8. Interest and fees

According to new regulations that came into effect last year, you cannot be charged fees and interest that exceed 100% of your original sum. It is reassuring to know that there is a limit on the final bill, but you will still want to be sure of what you are paying back. Check to confirm how much money will be deducted from your bank account after the payday. You need a clear idea of the money you will be left with.

9. Checks

There are no credit checks in payday lending, which means that you can get the loan even if you have a medium to low credit score. But, there are some businesses that will check with your employer to verify that you are actually working there, have a regular source of income, and are actually getting the money you have mentioned while making the loan application. There is nothing wrong with that, because these are businesses after all that will want their money back so that they can lend it to others in need.

But be sure about what to expect, and inform someone at your workplace that an inquiry might be made about your work status and pay per month. Also ensure that you have supplied accurate information while applying. Payday loan applications are almost always approved. This will improve your chances.

10. A payday loan may or may not affect your credit score

A few payday lenders say that a payday loan will improve your credit score. In reality, this may, or may not happen.

Yes, it is a fact that your standing improves if you repay a loan, any loan, as you are viewed as more credit-worthy, but there is no lending business that can claim to be working with the credit agencies. It is also likely that you will get future loans at friendlier terms if you can show a history of successfully repaying loans on time.

But don’t expect more, apart from getting the money you need to solve your immediate financial situation. This is the core concept of a payday loan.

You can apply for a payday loan with us here.

The payday loan industry has often been blamed for not looking at the best interests of their customers. Reality check – nothing could be further from the truth. There really is no alternative to these short-term loans, though in recent times, a few alternative plans have come up all over the United States. Most of them have however failed miserably. In contrast, the payday loan business remains a billion dollar industry, serving millions of customers throughout the country.

Here’s proof that there can be no alternative to payday loans

LendUp, a firm from the United States that was offering an alternative to payday lending has been slapped a fine of $6.3 billion after it was discovered that the business was violating several laws between the years 2012 and 2014. It includes a fine of $1.8 million by the CFPB or the Consumer Financial Protection Bureau as well. The California Department of Business Oversight has also imposed a fine of $100,000.

The Accusations Against LendUp and Why Payday Lenders Are Better:

As many as 14 states in the country and also the District of Columbia have prohibited payday lending. These states have passed legislation imposing tough terms and limits on payday lending. The US federal government has stepped in too. The Consumer Financial Protection Bureau (CFPB) has proposed regulations in June 2016. These regulations are going to come into practice from 2018.

However, the ground reality is that, there are few options for people who actually need the money.

Reality in the Mississippi Delta

If you travel through Highway 61, you will come across small towns and the fertile farmlands of the Mississippi Delta. There are many fast-food joints, gas stations, discount malls, and several stores that offer quick cash. There’s almost a constant flow of people coming and going to these stores, trying to get cash, and keeping up with the repayments. Most of them won’t get the money they need from a regular bank.

In Clarksdale, for instance, a majority black-town, one in three live in poverty, and this is the only kind of banking available. But payday lending isn’t just restricted to black Americans. You will see plenty of whites, Asians, and Hispanics too across the country. Most of them come from middle to lower-middle class neighborhoods.

Why? Because, there are millions of people in the United States who have no other option. Payday lending is the only kind of credit they will ever get.

Credit unions, community bankers and nonprofits are thinking of coming up with affordable loan plans as an alternative to the quick cash loans. However, for now at least, payday loans are the only real and practical option for the millions when they face an emergency. It could be a sudden medical bill, a burst tire, or a utility bill. Where do they turn to when there is no cash at home? In the absence of anything better, payday loans will put the cash in their pockets to help them avoid bankruptcy.

Jim Hawkins, who is an associate professor with the University of Houston Law Center, feels that most debtors pay off their payday loans immediately after receiving the next month’s paycheck. The problem is only with a small section of the population. By cutting off the credit, all its valid uses will be out of bounds. This may not necessarily be good.

People Who Take Payday Loans

A lot of people look for these cash advances – fast-food workers, government employees, and many others. They have one thing in common. They are often out of cash. It could be a sudden emergency, rent or utilities. They need emergency funds to tide over the emergency till the next paycheck arrives.

93% of homes have bank accounts, according to a 2013 survey. However, about 20% people have also approached alternative finance plans such as online and offline payday loan companies. There are some who even go to pawn brokers, who are worse.

WARNING: AVOID Pawn Brokers

Many individuals are afraid of banks. Their parents have never used banks, and have very little idea of how their processes work. Often, the banks will also deny them a loan, because the cash advance is too small for them, or they might have defaulted before.

This is why many people and even experts are asking the authorities not to take away the option of payday lending. It is their backup plan. CEO of the Community Finance Services Association, Dennis Shaul, agrees that some people get into trouble, but points out that it’s much the same with all kinds of debt. The fact is that, the risks are actually less with payday loans as the amount in question is less.

Both online and offline payday stores work at very little profit. Much of their margins go into getting the client and processing the loan.

There Are 16,000 Payday Stores

So you see, there are valid reasons why payday lending has become so popular. In fact, surveys show that there are 16,000 offline payday stores in the US now, which is more than the number of McDonald’s at this time. Add the number of online stores, and the number becomes even higher. Mississippi has the most number of these stores. Of course, poverty is high in this region of the country as well. The deprivation runs deep in Delta towns such as Clarksdale.

Look at neighboring Arkansas. In this state, payday lending was very popular till the prohibition came into effect in 2009. Arkansas is a poor state too, and is thus a perfect test case to find out the advantages and disadvantages of short-term credit.

In the absence of payday lending, there are hundreds of pawn shops in Arkansas.

Results of a Study Carried Out By the University Of Chicago

According to the findings of a study carried out by the University of Chicago in 2010, payday loans reduced the financial impact of an emergency or natural disaster. Researchers studied the foreclosure rates of properties in the state of California after a disaster. They discovered that there were fewer foreclosures in places that had access to payday loans and other short-term credit schemes.

Shutting down the establishments that offer payday loans may not thus be the solution. Those who ask for the quick cash clearly find value in this.

For instance, another study carried out in 2013 discovered that people staying in Arkansas counties located close to the neighboring states were taking more non-bank loans than those staying in counties located in the center of the state. This clearly shows that the residents were moving into the neighboring states to take the loan, because of the prohibition in Arkansas. So the requirements could not be changed even after the storefronts were shut down.

Sure enough, there are good and there are not so good payday lenders, like it is in every other business. Weed out the ones that don’t follow the laws and extort their clients. But a complete banning of the industry isn’t going to serve any purpose. Legal payday loan companies should be allowed to do business.

The Community Financial Services Association of America or the CFSA is there to look into the operations of all member companies. Hundreds of positive testimonials on payday lending have been submitted at the CFSA website. These are all real customers with real experiences. The federal government can also step in for monitoring. These are surely better models than complete prohibition.

Just for your information we only tie up with payday lenders who adhere to lending laws of their state. A thorough check is done before we let them enter our network of payday lenders in all states where payday lending is legal. We do not have any lender in any state where payday loans are illegal. We respect the laws of our nation and will always abide by its laws. You can apply for a payday loan with our lenders here.

Read why a short term loan is better sometimes when you only need a small amount of money to take care of a small problem in life.

A loan or debt isn’t necessarily a bad thing. Think of all those things you can achieve in life if you had just a few dollars more – all those small happiness’s, little delights. You might have to wait for many years if you don’t take the loan. Why wait? You know you are going to pay it back anyway. Then there can be emergencies for which you might suddenly have the need for some extra cash.

So don’t worry about debt. Ask for the extra money you want. Just make sure that you have a stable job and a regular source of income. There is nothing to worry if you do.

The world moves on debt. Countries take loans, businesses ask for debt to finance projects. So why you should you and me worry needlessly?

What Type of Loan Should You Take

There are two types of debt: short-term, and long-term. Which is the better option?

Long-term debts are mainly for big investments such as a home mortgage. For most other requirements, people usually go for short-term debt.

Long-term debt is way too risky because you never know what is going to happen in say 10 years time. You can lose your job, the economy may go into depression, you might have to relocate to another city, the value of your home could suddenly go down, like what happened with the housing market collapse a few years back. There are simply too many variables that may not work in your favor. What seems convenient now may turn into a difficult situation.

Long-Term Loans Are Very Stressful

Most people don’t like to languish in debt for the better part of their lives. You could end up spending 15, 20, and even 30 years of your life paying back the loan. With long-term loans, the interest you pay may end up being more than the amount you borrowed. The loan will certainly cause you stress. You will have to cut corners, make adjustments for years so that you can pay back.

The better bet is to take short-term loans to solve sudden financial emergencies and fulfill all those desires of your life. It’s just for a short time so the risk is far less. The amount of money you borrow is also less, so you are in better control.

Payday Loans – The Best Short-Term Loan

A payday loan is probably the best short-term loan you can get. It is issued against the money receivable after your next pay day. It’s just for a few hundred dollars and for a few days, a couple of weeks maximum. You know you are going to get your paycheck and can pay off the loan quickly. What can happen in a couple of weeks?

Payday loans are short-term unsecured loans. They are often referred to as payday cash advance as well. Thousands of people take these loans in the United States. It is risk free. It is a valuable source of funding for people who need money urgently.

Advantages of Short-Term Debt

Here are a few reasons why short-term loans like the payday cash advance are better.

In recent times US is seeing an increase in women applying for payday loans which is very surprising and shows that lots of women in US are now taking responsibility of running a family.

A few years back, it was believed that colored people, Hispanics, and Asians, and those from the economically weaker sections of the society were more likely to take a payday loan, irrespective of their location in the United States. But extensive studies carried out revealed something else. It was discovered that most of the borrowers are white and females. Most borrowers are between the age of 25 and 44 years. That was quite a discovery as it broke many myths about the kind of people taking these loans.

And now, there is increasing evidence to show that the number of women asking for a quick cash loan is actually on the rise. Studies have also revealed that this is probably not just a temporary thing. More and more women are likely to ask for quick cash. Not just that, women are also applying for more cash each time they are applying.

The Report from Colorado State

The Colorado state government has recently issued a report which states that 52.4% of all people asking for a payday loan in the state are women. This is not one state in isolation. It seems like a worldwide trend as similar reports are coming out from the other US states, Australia, United Kingdom and elsewhere in the world. In fact, in Australia, women asking for a payday loan have gone up by a staggering 110% over the last 10 years. That is quite a growth.

The report also states that a higher percentage of women in the state have been consistently asking for the loan over the last decade. In 2001 for instance, of all the applicants, 53.6% were women. Five years later, it stood at 53.2%.

Colorado has passed legislation restricting payday lending. That was in August 2010. A cap on the amount was brought into place, and the minimum term was extended to six months. However, this doesn’t seem to be stopping women from applying and getting the loan they need. If anything, the number of people applying has increased. Yes, some lenders went out of business in the state, but the others became more efficient and started serving more customers.

Here is Colorado Payday Loan Terms:

Loan Terms:
Maximum Loan Amount: $500
Loan Term: Min: 6 Months
Maximum Finance Rate and Fees: 20%: $0-$300 + 7.5%: $301-$500 plus 45% per annum interest plus monthly maintenance fee $7.50 per $100 borrowed, up to $30, after first month.
Finance Charge for 14-day $100 loan: Not applicable
APR for 14-day $100 loan: Not applicable

Debt Limits:
Maximum Number of Outstanding Loans at One Time: No limit if total debt does not exceed $500 and 30-days between loans
Rollovers Permitted: One renewal at 45% interest allowed.

Collection Limits:
Collection Fees: One $25 NSF fee; Court Costs; Reasonable Attorney’s Fees not to exceed loan amount
Criminal Action: Prohibited (Unless the consumer’s account was closed before the agreed upon negotiation date)

Data taken from:
https://www.paydayloaninfo.org/state-information/13

Why Are Women Taking Payday Loans?

What are the reasons for so many women asking for the loan, and why are they asking for more money? Let us investigate.

The experts are saying that there are a few reasons for this.

An Effect of the Recession?

Firstly, we are still not out of the effects of the recession, though it is a few years behind us. Many people are still unemployed. But what is more worrisome is that, a larger number of people are underemployed and working for less than what they are worth. The cost of living is also going up across the country, which of course compounds the problem. And it’s a known fact that women often have to face the worst consequences of any downtime, as usually, they are the ones who take care of the immediate requirements of the family. Pressed on survival basics such as need to pay urgent bills, clothing and food, and without much money in hand, they have no other option but to take a quick cash loan that gives them the solution they need. Often, a lot of these people will be turned down by the banks, which of course is a problem.

Data shows that more women lose jobs as compared to men when there is recession, and even after this. It can be difficult to look after the family if there is no full-time employment. In the absence of cash to solve urgent needs, they can go deeper into poverty as they can approach the gray market and become victims of loan sharks.

Data from Colorado also shows that women here are making $330 less as compared to men on an average. So it seems that they are the ones who need to extra cash to make both the ends meet. Even for the same work, often, women are making less money, and this is true not just in the state, but beyond it as well.

Women are Becoming Independent

While the first reason is a negative one, the next one is positive. More and more women are seeking financial independence now. Both married and unmarried women are starting their own small businesses, and sometimes they get big too.

Businesses of course need cash from time to time for a variety of reasons. Sometimes, it is to buy resources, sometimes for marketing, and sometimes to pay wages. Quick cash can make a world of difference. Without it, the business can lose out to competition. Even big enterprises need cash. It is of course even more important for small ones. With quick cash infusion, businesses are often able to benefit from a sudden situation.

When you need quick money, the banks and conventional financial organizations are not the place to go. That’s because they take a lot of time in processing the application. This can beat the very purpose of taking the loan – quick action.

Payday lending is just the opposite of this. The money is disbursed in 48 to 72 hours after you make the application. Plus, you don’t have to explain why you need the money, and so the funds could be used for a variety of purposes. That is just perfect.

Domestic Issues

A few experts are of the opinion that women in families where there is domestic violence are being forced to take credit. In some instances, a dominating partner is coercing them to get into debt, and then, they are forced to hand over the money. This certainly is abuse, but it is happening not just in the United States, but elsewhere in the world as well. That’s the opinion of those who are working with the victims of domestic violence, such as the Citizens Advice Bureau. Citizens Advice workers have filed a report coinciding with the International Day for the Elimination of Violence against Women. They have suggested that psychological and emotional abuse should also be treated just like domestic violence. But it’s not just the women, even men are sometimes the victims of this kind of abuse. However, nine out of ten abused people are women.

No matter what the cause, it is a fact that more women are now seeking payday loans. Without it, their life will certainly be much harder.

In this article learn about what is the payday loan extended payment plan and how you can avail it.

Payday loans are short-term loans, where you are expected to pay back the amount due on receiving the next month’s pay check. That is, you must pay back in 2-3 weeks time. Most people do this and stay in the right side of the law, and qualify for another loan in time. But sometimes, even those who have the best repayment history can face a temporary situation where they aren’t able to pay back on the due day.

So what do you do then? If you cannot pay back the payday loan on time, then there is no immediate worry for you. There won’t be an upcoming onslaught of debt collection calls. That’s because, there’s something called the “Extended Payment Plan”. Thanks to this, there won’t be any high fees and bank account debits as well.

Protection for Consumers

If the lending agency is a member of the CFSA (Community Financial Services Association of America), they cannot force you to repay the amount. No coercion practices are allowed. The lending company must give you time till the next four paydays to repay the amount due. No extra fees can also be charged for this. All CFSA member agencies should carry the CFSA logo in their websites. It should also be displayed in their office, if they have a physical presence. So look for the blue oval logo to be sure that the agency is a member of the CFSA. Be sure, as not all agencies are members of the CFSA.

CFSA Best Practices ensures that consumers who aren’t able to pay it back on the due date can ask for the EPP or the Extended Payment Plan. When you make the application, you will get several more weeks time by when you can pay back your debt. And like mentioned before, you cannot be charged for this delay.

State and Federal Laws

There are specific laws in some states as well that can give you protection if you are not able to pay back the loan on time. Lending agencies that are not members of the CFSA must abide by these laws. You may also check at the attorney general’s website of your state to find out the state laws that apply.

In the US states of Virginia and Utah for example, you will find brochures and websites where there is information on the consumer protection laws about payday loans. There is federal protection too, but that is less, compared to the state laws.

What You Should Say When You Cannot Repay

You must let your lender know before the business closes on the last day when the amount is due. But it’s wise not to wait till the last moment. Call up, or send an email early. We recommend at least one business day before inform them that you may not be able to pay.

Do what you did, while you applied for the loan. Go to their office, contact online, or call up. Carry a print out of this page. This page mentions all the details of the Extended Payment Plan. If you are sending an email, then refer to this page in your content. No payday lending agency can deny you. This is simply not legal.

Clearly mention that you want to apply for the Extended Payment Plan. You will then be asked to sign a new statement, where you must agree to a new payment schedule. This is your amended loan agreement. There will be four equal payments, spread out over the next four paydays. The fees you owe already will be included. But no new interest or fees can be added. The lending agency cannot send a collection agency or hassle you to pay up forcefully before, that is of course, if you honor the new payment schedule.

But remember, there is a catch. You are allowed to apply for the Extended Payment Plan only once in a year with each payday lending agency. And that is it. Also, there can be a state law that makes it a bit different. You must then abide by that law.

What Happens If You Default

Also remember, if you default on the new payment schedule, then the lender can charge you an Extended Payment Plan fee. The lending company can also accelerate payment on the balance that is due. This is authorized by law. Any additional charges or fees payable when you default will also be mentioned in your new agreement. So make sure that you honor the new payment schedule. Make every effort to do so.

It’s up to you how you want to repay the debt. You may pay up in cash in equal installments over the paydays, or you may allow the amount to be deducted from your bank account. But whatever it is, you have to agree in advance. Most lending companies won’t let you change the mode of payment after you have agreed.

Also keep in mind, you cannot take another loan till the time your entire due amount is cleared in full.

Paying Up Fully Before the Due Date

If you want, and are able to, you can also clear the entire debt in one full payment. Some payday lending companies ask debtors to do so a few days before the due date. So check with your lender. Also, many of them ask for such payment in debit or cash only. You can of course take another loan if you pay it back fully before the due date.

You can still repay in full even if the first payment of your amended contract has already been deducted or paid. The amount due will of course be adjusted accordingly.

What If the Lending Company Doesn’t Agree?

Legally, there is no way for a CFSA member agency to deny the Extended Payment Plan. However if the lender is still not agreeing, then you can approach the CFSA. You should then call the CFSA hotline number 888-572-9329 between 9 and 5 Eastern Time. You can send an email as well to LoanQuestions@CFSAA.com. There is also a form at the CFSA website that you can fill out to lodge your complaint.

Payday lenders in the United States become CFSA members to avail several benefits such as tax deductible trips to different conferences held at Florida, California and other places, and also to represent them in Washington. A free extended payment term is a price all member businesses agree upon. So they should honor this.

So you see, there is really nothing to worry about payday lending, though the critics will tell you otherwise. Consumer interest is high in the agenda of most lenders, and the Community Financial Services Association of America. Consumer interest is always protected. So go ahead and take the short-term loan you want. You can apply on our site as well anytime you want. Please click here to apply for a fast payday loan. Your application will be processed and approved quickly. Solve your temporary financial situation today.