Monthly Archives: July 2012

Alternatives To Emergency Cash Loans That Offer Better Rates Than Payday Advances

As the recession drugs on, more and more people turn to payday loans to take care of their immediate needs. Some needs are emergencies that cannot wait until your next pay day. This is the very reason why payday loans have become very popular in recent years. Most people are fully aware that payday loans cannot solve your financial problems, yet they continue to borrow small loans to keep up with their responsibilities.

Payday loans have higher interest rates, but if you have no other options available to you, you will not hesitate to take out a small loan. While it is true that a payday loan cannot solve a financial crisis, it is also important to know that emergencies cannot wait until your next pay day. Today, alternatives to payday loans are available to help people in need of cash.

Some credit union members are entitled to a $500.00 credit each month. This money can be repaid every month with only a small interest rate. Each of the loans you take out is linked to a solo cash account. The 5% of the loan is automatically taken out and placed in a savings account to help the borrower create a rainy day fund.

Most banks are starting to offer small interest loans to help people who may need money for emergencies. Banks offer some customers loans up to $1000.00 with low interest rates that go further than a single pay check. This alternative is better than a payday loan that requires you to pay the whole amount in full with only one paycheck.

It is important to know that the reason you are borrowing funds in the first place is to take care of your immediate needs. Therefore, you must do it in a way that does not push you further into debt. Which is why it is important to evaluate all your options before you settle on a payday loan?

These loans must be paid back on due date, if you are not in a position to pay the loan back on time, then this option (payday loan) might not be a good fit for you. It is important to know that the money you have borrowed will have to be paid back one way or the other.

While it is true that a payday loan is easier to obtain, it is also important to know that the interest rates for payday loans are too high. Therefore, you must decide whether or not this type of loans are good for you. . It is best to look at other options that might be available to you before you commit yourself as this is a commitment you cannot afford to break.

You can begin by making a research to see if you qualify for a small loan with lower interest rates. Then make your decision based on those facts. This will enable you to get a small loan with lower interest rates.

How Many Payday Loans Can A Borrower Have Open At One Time

A borrower can have more than one payday loans and a maximum of two from any one lender at a go. Governed by all other aspects of payday loans, the main qualification of a payday loan is a payroll, which acts as a guarantee security to the lender that the borrower will pay the money. As a result of this, no lender can at any given time allow or give a borrower more than two payday advances at one time, irrespective of the presumed fact that the number of payday loans that one can have at any one given time is determined by the lender; probably with the assumptions that some lenders would allow accept to give more payday loans to one person at a go.

This may only be applicable whereby the borrower is salaried by more than two employers and his or her payments do not amalgamate into one single account, but rather each salary has it’s own account; in which case, with proper arrangement with the lender one can take a payday loan against each of these account. This however, has to prove beyond doubt that the borrower is operating all his or her salaries accounts successfully. It’s not still a guarantee that a lender would accept or be in agreement with more that two payday advances at one given time. Some are able to track through whether the borrower could be having any other salary cash advances from other lenders before issuing one, though this is a rare case.

Considering the conditions governing payday advances, taking more than one payday loan at any given time is not encouraged. Many payday loans at a time tends to squeeze the borrower payment power to the corner and on the other hand the lender risks losing its/his/her money should the borrower default in payments due to the inability to comfortably serve all the payday loans as appropriate. Many payday loans may prove difficulties in payment; therefore, in consideration of the advantage to both the borrower and the lender, one should serve at least one loan to completion before taking another.

It is always advisable to anyone who wants to take more than one payday loan to seek expert advice of financial consultants, before hand, to ensure that one will not end up straining their finances beyond what they can accomplish. Remember that most payday loans are not for investments, but to sort crisis, some of which are even bound to repeat even after you have taken the advanced cash. Proper considerations should thus be accorded to such a decision, and one should only take a payday advance when they are in a dire need of it and there is no any other better option available.