What Is A PayDay Loan?
Many of us have to deal with credit card, car, rent or home bills that are due at different times every single month. We usually get by, but every now and then we get caught in a bind where we have several bills due at once, but don’t get paid for another couple days.
Often a victim of this predicament, I’ve found that payday loans are one of the easiest and most convenient ways to cover your bills in time. Payday loans are simply very short term loans, they’re meant to cover your immediate expenses with the idea that you’ll pay the loan back at your next paycheck.
The loans come in different increments, and you can usually borrow any amount up to $1500. There are thousands of payday loan companies out there; they may differ in how much of a loan you can borrow, how much time you have to pay the loan back, or how much of an interest rate is tacked on to the loan.
How Do Payday Loans Work?
One of the reasons payday loans have become so popular is due to how easy of a process it is to get them. You can apply online using a secure application and have your cash in hand within 24 hours! Yes, it really is that easy! That’s why payday loans have become so popular today — because it’s super-simple to apply, get the cash you need and get out of a jam.
Think a payday loan would help you out?
Go apply online right now and get the cash you need, and fast!
Second Chance Bank Accounts
Not everybody has a bank account. Some people prefer to deal exclusively in cash; some people have poor history with banks and thus cannot open an account.
Let me tell you a story: when I was in college, I had an account with Bank of America. It was one of those free college checking accounts with no strings attached. I, being financially unresponsible, started writing checks left and right. I’d write checks for pizza delivered to the dorm. I wrote checks at the gas station for a single soda. I wrote checks to friends and I wrote checks to family. But you know what? I never managed to keep an eye on the money I actually had in the account. Yeah, I know — you’re supposed to balance your checkbook every time you write a check.
But I didn’t. And I paid for it.
I ended up having over $1200 worth of hot checks. I couldn’t afford to pay off the debt, so I just “forgot about it”. I went on my merry way and pretended that Bank of America never existed.
Bad idea, right?
A few months later, I tried to open up a bank account with a local bank near my college. They denied me. When I asked why I was denied, I was told that Bank of America had reported me to all banks, and that it would be impossible to open up another bank account until I took care of the debt that I owed them.
Are you in the same kind of situation I was in? Luckily for you, there’s another option.
It’s called second chance checking. It doesn’t matter what your credit history is, and it doesn’t matter what kind of history you have with other banks — you WILL be accepted! You’ll be able to get a debit card and start controlling your finances again, and you’ll have the freedom that comes with knowing that you have a storehouse for your money.
Click here to sign up for a new bank account. You won’t regret it!
The History Of Payday Loans
Where Did Payday Loans Come From?
Payday loans are basically a form of credit or a short term loan, both which have been around for ages. At the very least, the idea of lending can be traced back to thousands of years ago when Rome was in power. While it’s unclear who the very first person to think about starting an official payday loan company was, they began popping up around the United States in the early 1990’s. (See the history of the payday loan at Wikipedia) The process really got started by companies that introduced check cashing loans, which were very similar to the payday loans we have today. During this period of time, the economy was on the rise and consumer demand was steadily increasing, leading to the rise of payday loans. This new type of loan was extremely convenient; you could walk out of a payday loan store with cash in minutes. Payday loan companies don’t approve people for loans based off credit history, so even those with bad credit took advantage of them. It took a couple years, but payday loans grew fairly quickly into the service you see today.
The Internet Age & Controversy
In the past several years, companies have managed to take their services online, offering people payday loans that could be deposited in bank accounts immediately. Lenders online and in stores do not require a credit check for a payday loan, meaning all you really need is a job to get one. Though the payday loan process was popular almost from its inception, some accused the industry of taking advantage of other’s misfortune by inflating loan interest rates, which forced some people even deeper in to debt. Those who relied too heavily on the loans found themselves in a never ending cycle of taking out loan after loan. Today the government is in charge of regulating the interest rates on loans and helps keep their cost reasonable, although some still believe it is an issue.
Payday Loan Interest Rates VS Not Paying Bills
You may have heard arguments that payday loans still have too high interest rate today, it may be higher than a car loan or anything that is much longer term, but it allows for a convenience that no other loan can. Only with a payday loan can you get cash in your pocket or bank account the same day you apply for it. This is one of the primary reasons payday loans skyrocketed in popularity, people who might have failed to pay rent or their power bill on time could do it easily now. It’s also worth considering that even though payday loans have a higher interest rate than some other loans, you’re better off paying $10-15 in interest rather than not paying a bill on time or getting pegged with an NSF. Many companies charge as much as $25 for late payments and possibly even more if you bounce a check to them. Imagine not being able to pay two or three bills on time because you don’t get paid till a week later, you would incur over $50 in late fees easily. Not only that, your credit score could also be negatively affected by failing to pay a bill on time. That’s the convenience of a payday loan and why they went from niche use in the early 1990’s to hugely popular today. With the advent of online payday loans, the service can be used from anywhere nation wide at all hours of the day.
Payday Loan Consolidation
We all know that you can consolidation loans and credit card balances to make them easier to pay off. Can you consolidate a payday loan? This would be a very helpful thing to do, if at all possible. Many people are searching for ways to make their payday loan payments easier. So can you consolidate a payday loan? What are some of the ways that make payday loan repayment easier?
Is Consolidation Possible?
First you must know that your payday loan is not like your mortgage or credit card. You have been given as a quick fix until you reach payday. Note the term “quick fix.” This is not suppose to be a process that is long and drawn out. You get your money, then you pay it back next pay period. It is as simple as that. Unfortunately there are people who cannot pay it back the next pay period.
There is no simple answer to your consolidation question. Payday loans are a tough thing, because they are meant as that quick fix. So people who consolidate loans do not expect many people to want to consolidate. That is because they expect that the payday loans are already paid off. So really it just depends on the consolidator.
One thing that can cause a problem is the interest rates that a payday loan has. They can be so high that your interest payments are larger then your loan. This is a big problem. It will then be rare to find anyone who wants to consolidate that. So it is possible to find someone who wants to consolidate a payday loan. You just need to search long and hard. Know that you will probably get rejected a few times as well.
What Are My Other Options?
If you are hesitant about your repayment situation before you take out a payday loan, then that is probably a good reason not to get a loan. You always need to make sure that you will be able to repay. So what can you do? Well first of all you need to take a look at your budget. If you do not have a budget you need to start one. This will let you know where all your money is going. If you see that you are spending a lot of money on things that are not that important you may want to cut back. When you have a strong budget then you know you will be able to pay back. That is when you can take out that loan. The main thing you need to remember is that you must pay back on time. If that means waiting a little while for your repayment situation to be put in order, then you should probably wait.
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