Corporate Flyer Blog

We are in the midst of a recession that is taking its toll on our country’s working class.  Many Americans are finding it hard to make ends meet and are barely getting by.  Access to short term loans, such as payday and title loans empower the working class by providing access to the cash they need until their next paycheck.

A typical payday loan costs consumers $ 15 dollars for every $ 100 dollars borrowed.  This is less costly than paying overdraft or late payment fees and gives consumers peace of mind until they are back on their feet.

A payday loan can, and has, saved many consumers from financial emergencies.  What if your car breaks down on the way to work?  You have it towed in and the repair bill plus towing fees total out to be over $ 300!!!  This, by the way, is a conservative figure for car repairs – aaaaargh.  As your stress level escalates you realize that your bank account is depleted and payday isn’t for another week.  Sound familiar?  There is a solution – get a payday loan. 

This industry is often scrutinized, but the fees pale in comparison to multiple NSF charges, missed days at work due to lack of transportation, etc.  The loans are easy to obtain and can often be applied for online by completing a short application.  Be sure to do your homework and find a reputable lender.  Another consideration when choosing a title lender is making sure that you are not applying through a “middle man.”  It is cheaper and more secure to deal directly with the company who will be lending you the emergency cash.

According to the USA Today, banks are raising late payment and over the limit fees for credit card consumers.  Credit card companies say that this is necessary to offset higher delinquency rates and charge offs.

The irony is that credit card companies love late payments, as long as its not too late.  Last year they racked up $ 19 billion dollars in over the limit and late payment fees.  That number is expected to be $ 20.5 billion of essentially free money in the next year.

Consumers are having a harder time paying off these high interest cards and the fees continue to mount.  Taking out a payday loan is often times a cheaper alternative to the ever increasing rates and interest accrued on your cards.

A lot of people who are short on cash have to turn to a payday lender to meet their immediate cash needs.  However, lawmakers in South Carolina are looking to make it tougher for consumers to use this loan product.

Given current economic circumstances, folks are finding it hard to make ends meet.  You try to stretch your paycheck until the next one comes and you find yourself a little short.  So it is easy and makes sense to visit a payday lender to get the funds that will help you get by until your next check.  This is the story for thousands of people in South Carolina.

While some citizens see the benefits to using a payday lender,  South Carolina lawmakers don’t.  They plan to put restrictions on payday lending such as – setting minimum wait periods before a customer could go and obtain another payday loan, having only one loan at a time, and capping the amount borrowed to $600.

The bill is now headed to the Senate Banking and Insurance committee.  Many customers who rely on this source of short term cash oppose the passing of these restrictions.

Payday loans are becoming increasingly advantageous to consumers looking to satisfy their need for short term cash.  With the availability of credit drying up at an alarming rate, these loans remain a viable solution for those in need.  Another reason that makes the loans so attractive is that they are easy and hassle free to obtain.  Most lenders allow you to apply online and have very fast approval times.  The paperwork required to obtain a payday loan is extremely minimal.  Usually just proof of employment or regular monthly income and best of all, credit is usually not a factor.

Some online loan sites are simply a “middle man” their role is to take your information and distribute it to loads of lenders for your loan requests.  Utilizing this type of service will oftentimes inundate your email inbox for months with advertisement from hundreds of payday lenders.  I have also heard instances where they will relentlessly call your cell or work phone to solicit their services.  To avoid this fiasco try to find a lender whose online application goes straight to their office for funding approval.

Payday loans are a great and inexpensive way to get by until you are paid again.  Especially considering that banking overdraft and late payment fees can be quite expensive compared to the rates that Payday lenders offer.

We have all been in this situation – crossing our fingers hoping that you have enough money in your checking account before the check or online payment for bills clears the account.  The obvious solution is being responsible with your hard earned money and avoiding this dilemma all together, but sometimes this is just not an option.  NSF fees are on the rise and are extremely lucrative for the banks.  Their computer system has also become increasingly savvy at rearranging debits from your account to maximize the amount of NSF fees charged.

For example, you may have $ 15.00 in your checking account, but without thinking about it you use your debit card at the grocery store for $ 19.00.  The register will accept your debit card, but be advised that an overdraft charge of $ 25.00 – $ 39.00 (depending upon your banking institution) will be deducted from your account.  And sometimes it does not even stop there!  Some banks will continue to charge your account $ 2.00 – $ 5.00 per day, until the account has a positive balance.  In addition to monthly maintenance fees.  So, at the end of the day – your $ 19.00 purchase can cost in excess of $ 50.00 in fees.

A payday loan of only $ 100.00 (to be paid back with your next paycheck) would have only cost you $10.00!!!  By taking a few minutes to apply for a payday loan online you could have saved yourself $40.00.  I find this to be the best option for short term cash needs.

Lawmakers last ditch efforts to revive a shelved bill aimed at reigning in payday lenders failed in the House on Tuesday.

Supporters of House Bill 396 argued that payday and title loan companies are akin to legalized loan sharks that take advantage of the impoverished.

Opponents of the bill said payday lenders provide valuable lending services for people who would otherwise not be able to secure a small loan for things like groceries or utility bills.  Some even argue that if unless you are going to require that all banks loan money to people with no assets, you should not take away the one avenue that they have.

Payday and title loan lenders are a viable solution to people with short term financial needs.

No longer do you have to run around town to obtain the cash you need!  Most payday lenders are now offering their products online.  You can access these funds from the privacy and comfort of your home.  These loans are hassle free and do not require lengthy amounts of paperwork for approval.  All you need to do is search for a reputable online lender, fill out a short application then simply wait for a customer service representative to contact you with approval information.  It’s that easy!

The Payday and Title Loan industry has always had more than its fair share of critics who would like to see this lending practice eliminated altogether.  They contend that Payday and Title Loans push people into debt by charging exorbitant fees and interest on these short term loan products.  Critics also argue that it is too easy to obtain a Payday or Title Loan, which may lead to a situation in which people are unable to repay and force them into accruing more debt or having to file bankruptcy.

My argument is this…  Of course they charge a higher interest rate!!!  But these loans are not annual loans so the APR issue is not pertinent.  They are merely a short term financial solution.  In many instances, the consumer is seeking this type of loan product to avoid a more costly consequence like bank overdraft fees and/or late payment penalties.  I am not convinced that a small, short term loan is pushing consumers into bankruptcy.

To provide further support for the need of this industry recent studies have shown that 90% of the Payday and Title Loan consumers pay their loan back on time.  Jeff Kursman, a payday loan provider, recently debated the need for his product.  He says “If you look at studies from the University of Chicago, Clemson, Dartmouth and Columbia, you’ll see that they’ve concluded that bankruptcy actually goes up when people are prevented from using our product. There are 19 million Americans that use our product in a year. If you take us away, you’re leaving them with more expensive alternatives. That’s not consumer choice.”

In conclusion, I feel that there is a need for these loan products.  For me, they have been a reliable and convenient source of cash when I find myself needing a few extra bucks until payday.

Payday Loans are becoming a more attractive product for consumers seeking cash during these gloomy economic times.  Payday lenders do not demand as many requirements as borrowing from a bank.  In addition, bank requirements for extending credit to borrowers has become increasingly stringent to nearly impossible for the vast majority of consumers.  While payday loans have usually been a resource for low income consumers, as the availability of credit lines are drying up, the industry is seeing more middle class consumers taking advantage of their products.  The average payday loan customer is employed and has an income of $45,000 per year.  This industry provides a temporary solution for your short term financial needs.