Japan business – Tohoho http://tohoho.info/ Mon, 13 Jun 2022 19:33:25 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://tohoho.info/wp-content/uploads/2021/10/icon-25-120x120.png Japan business – Tohoho http://tohoho.info/ 32 32 In a Jam? Don’t take out a payday loan without reading this first https://tohoho.info/in-a-jam-dont-take-out-a-payday-loan-without-reading-this-first/ Mon, 13 Jun 2022 19:33:25 +0000 https://tohoho.info/in-a-jam-dont-take-out-a-payday-loan-without-reading-this-first/ Image source: Getty Images These quick and easy loans come at a terrible price. Key points Payday loans may seem to solve your short-term financial problems, but they often make long-term problems worse. There are other, more affordable ways to get the cash you need in a snap. When the bills pile up, it’s natural […]]]>

Image source: Getty Images

These quick and easy loans come at a terrible price.


Key points

  • Payday loans may seem to solve your short-term financial problems, but they often make long-term problems worse.
  • There are other, more affordable ways to get the cash you need in a snap.

When the bills pile up, it’s natural to look for the quickest way out of your situation. But sometimes what seems like the perfect solution can actually lead to bigger problems. This is the case with payday loans, which promise quick and easy cash while hiding an alarming cost. But do not worry. There are other ways to get the money you need, and if you already have payday loan debt, it is possible to get out of this situation.

What’s so bad about payday loans?

A payday loan is a short-term loan, usually $500 or less. It is much faster to obtain one of these types of loans than other more traditional loans from a bank. Usually, all you have to do is provide ID and proof of income, then write a post-dated check or allow the lender to withdraw the funds from your account on your next payday. No collateral is required and you can be out with your money in minutes.

This sounds great in theory, but payday loans usually carry astronomical interest rates. A typical credit card can have an annual percentage rate (APR) of 15% to 30%, depending on the cardholder’s credit. A payday loan can easily have an APR of 400% or more.

Those who are unable to repay what they owe often end up extending their payday loan, which only adds more interest, and the cycle continues month after month. Over time, it becomes increasingly difficult to keep up with payments as interest charges escalate.

Let’s say you take out a $100 payday loan with an APR of 400% due in two weeks. If you are unable to repay it, the payday lender will now charge you interest on your initial $100, plus the $15.34 interest owed on the first loan. If you cannot repay the loan after one month, you will owe $165. After three months, it will cost you $232. And after a year, you’ll owe $500, assuming you continue to extend the loan without paying anything back.

Payday loans are so dangerous that some states have banned them outright while others have limited the interest rates and fees that payday lenders are allowed to charge their customers. But many states still allow these outrageous charges to continue. Fortunately, payday loans aren’t the only way to get the money you need.

Payday loan alternatives to consider

Avoiding payday loans is possible, but your approach will depend on several factors, including your credit and when you need the money. For non-emergency expenses, the best strategy is often to save up little by little for your purchases. And if you don’t have an emergency fund yet, you should build one up so you don’t have to borrow money for unexpected expenses.

In some cases, you may be able to work out a payment plan rather than paying a large bill all at once. Many hospitals allow you to do this for medical debts and you may be able to do the same for other bills.

Personal loans are another option, and they’re also a great choice for those who already have payday loan debt. This is another type of loan that doesn’t have collateral, and it’s possible to get one even if your credit isn’t great. The interest rates on these loans are higher than those on a mortgage or car loan, but they are much more affordable than payday loans. You can also borrow a lot more if you need to, and many lenders offer you longer repayment terms. Plus, many lenders can get you the money you need in a day or two.

There are also other types of hardship loans, for things like medical care or emergency home repairs that can help you in certain situations.

Finally, you can consult local charities if you need help with essentials. You may be able to get food, clothing, and other essentials at little or no cost.

You can usually find better options than a payday loan. But if you choose to take one out anyway, make sure you understand its costs and be sure you can pay it back on time. Otherwise, you will only postpone your financial problems.

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Personal loan ads on social networks https://tohoho.info/personal-loan-ads-on-social-networks/ Sun, 12 Jun 2022 00:07:08 +0000 https://tohoho.info/personal-loan-ads-on-social-networks/ The past few years have been difficult for many Americans. Unfortunately, trying to stretch every dollar to buy basic necessities has become the norm. Some might consider a second or third job to pay the bills. This is precisely the type of person that payday loans target. Promising quick cash without telling the full story […]]]>

The past few years have been difficult for many Americans. Unfortunately, trying to stretch every dollar to buy basic necessities has become the norm. Some might consider a second or third job to pay the bills.

This is precisely the type of person that payday loans target. Promising quick cash without telling the full story of loan costs, these ads have been popping up on social media platforms like TikTok.

Read on to find out how these companies are bending the rules and why taking a payday loan is bad.

Here is the backstory

All social media platforms have advertising as it is the main way to generate profit. But some sites are not as strict about ad content as others. For example, TikTok claims to have a policy against “exaggerated performance or promises”.

Yet, there are many payday loan messages that target vulnerable users. According to Media Matters for Americathree companies systematically violate TikTok’s advertising policies by promoting payday loans.

Promising instant cash, posts by Earnin, Brigit and Albert target those in need of quick cash with phrasing such as “living paycheck to paycheck” or always being “broke”. It is unclear how advertising is allowed to be on the platform.

TikTok Payday Loans
Credit: Media Matters for America

But Earnin is no stranger to controversy. The company settled a $12.5 million lawsuit three years ago for deceptive lending practices. Brigit and Albert are also not registered with the Better Business Bureau (BBB), as some users claimed there were unexpected charges or missing deposits.

What can you do about it

It may seem like a lucrative opportunity to get some quick cash in your wallet, but there will always be a catch. The interest rate will be exorbitant, and they don’t call it often. Some advertisements will use words such as “fee” or “tip” without mentioning the interest rate.

According to the Consumer Financial Protection Bureau, a two-week payday loan with a $15 fee to borrow $100 gives you an annual percentage rate of 400%. That’s way more than the typical 30% for a high-interest credit card.

It may leave you in a cycle of debt, but according to the BBBthere are safer alternatives to payday loans:

  • Build a budget with an emergency fund. Create a budget so you know how much money you receive and how much you need to pay your bills. This will help avoid needing a loan in the first place. Then set aside money each month to build an emergency fund. You will be covered even if an unexpected expense or emergency occurs.
  • Get credit advice. Get credit counseling if you find yourself unable to pay your bills or caught in a cycle of debt due to a high-interest loan. The US Department of Justice has a list of agencies for people looking for debt reduction help. Also see BBB’s advice on credit counseling for more resources.
  • Shop for loans. Compare interest rates, fees and late fees by reading the fine print before choosing a lender. Pay close attention to interest rates and loan rollover fees. Credit unions are a great place to get a small loan with reasonable interest rates. Even credit card cash advances, which typically have double-digit interest rates, likely have lower interest rates than those offered by a payday lender.
  • Contact your creditors if you cannot pay on time. If you realize you won’t be able to make a payment on time, don’t panic. Contact the creditor directly. Many creditors are willing to work with you to design a payment plan you can afford.

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What you need to know about payday loan ads on social media https://tohoho.info/what-you-need-to-know-about-payday-loan-ads-on-social-media/ Tue, 07 Jun 2022 18:22:37 +0000 https://tohoho.info/what-you-need-to-know-about-payday-loan-ads-on-social-media/ If you’ve ever needed extra cash to prepare for your next paycheck, you understand the appeal of a payday loan. Now, video ads on places like TikTok are promoting small, short-term loans to a new, young audience — and making them look cheap and easy. However, just because it looks simple doesn’t mean it is. […]]]>

If you’ve ever needed extra cash to prepare for your next paycheck, you understand the appeal of a payday loan. Now, video ads on places like TikTok are promoting small, short-term loans to a new, young audience — and making them look cheap and easy. However, just because it looks simple doesn’t mean it is. Predatory payday lenders use the platform to make dishonest claims promising instant money with no credit checks, late fees or interest rates.

Often, advertisers circumvent the rules of the platform. ICT Tac and Meta have rules limiting advertisements for short-term/payday loans, but some have found their way.

Here’s what you need to know before taking out a payday loan from a social media ad.

Understanding Payday Loans Featured in Social Media Ads

  • Apps may not call it an “interest rate,” but it is. Many lenders who advertise on TikTok trying to circumvent regulations by creating new names for their service. By calling their interest rates a “tip” or “fee”, lenders are hoping you won’t notice the amount of interest you’ll actually be paying. Keep in mind that responsible lenders will always be willing to disclose the APR on their loans.
  • Payday loans are expensive. A two-week payday loan with a $15 fee to borrow $100 translates to an annual percentage rate (APR) of almost 400%, according to the Consumer Financial Protection Bureau. That’s a huge leap even compared to a high-interest credit card, which has rates around 30%.
  • Just because it’s easy doesn’t mean a payday loan is a good idea. If you’re young or don’t have access to other types of credit, you’re an ideal target for a payday lender. Unscrupulous lenders promote the fact that you don’t need a credit check or documents to get a loan. However, this facility can come at a high cost. Before applying for a payday loan, spend time researching other options.
  • Not all social media ads are truthful. Payday lenders seen on TikTok can promise you instant cash. But if it sounds too good to be true, it probably is. Many companies like these have come under scrutiny for deceptive lending practices, and some may simply be after access to your bank account. Don’t believe everything you see on social media ads without doing further research.
  • Make sure you can repay the loan. With such high interest rates, many people find themselves stuck in a debt cycle. Plus, payday loans can ruin your credit if you find yourself unable to pay what you owe.

Better alternatives to payday loans

  • Build a budget with an emergency fund. Create a budget so you know how much money you get and how much you need to pay your bills. This will help you avoid needing a loan in the first place. Then set aside money each month to build an emergency fund. Then you’ll be covered even if an unexpected expense or emergency arises.
  • Get credit advice. If you find yourself unable to pay your bills or caught in a cycle of debt due to a high-interest loan, get credit counseling. The US Department of Justice has a list of agencies for people looking for debt reduction help. In Canada, see this list of Canadian Not-for-Profit Credit Counseling Agencies. Also see BBB’s advice on credit counseling for more resources.
  • Shop around if you need a loan. Compare interest rates, fees and late fees by reading the fine print before choosing a lender. Pay close attention to interest rates and loan rollover fees. Credit unions are a good place to take out a small loan with reasonable interest rates. Even credit card cash advances, which typically have double-digit interest rates, likely have lower interest rates than what a payday lender will offer you. See advice on choosing a bank or credit union.
  • Contact your creditors if you cannot pay on time. If you realize you won’t be able to make a payment on time, don’t panic. Contact the creditor directly. Many creditors will be willing to work with you to come up with a payment plan you can afford.

For more information

Read the BBB Tip: Payday Loans for more considerations on working with payday lenders. You will find practical advice in Tip BBB: How to also buy financial services.

If you think a payday lender has cheated or taken advantage of you, file a complaint at BBB.org and with the Federal Trade Commission.

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How to get out of payday loan debt in Colorado https://tohoho.info/how-to-get-out-of-payday-loan-debt-in-colorado/ Tue, 31 May 2022 23:21:48 +0000 https://tohoho.info/how-to-get-out-of-payday-loan-debt-in-colorado/ Despite all the pros and cons, payday loans are still the most convenient option for meeting immediate cash needs. Payday loans can cost you a lot more in the long run than you originally planned to borrow. Payday loans can quickly become a trap for borrowers due to their high interest rates and fees. The […]]]>

Despite all the pros and cons, payday loans are still the most convenient option for meeting immediate cash needs. Payday loans can cost you a lot more in the long run than you originally planned to borrow.

Payday loans can quickly become a trap for borrowers due to their high interest rates and fees. The bill is coming due and they take out another business loan with even more fees because they can’t pay it. Many predatory lenders abandon their customers using deception and trick consumers into approving loans in states where payday loans are illegal.

Below are some of the key facts about Colorado payday loan laws to help you make an informed decision about payday loans. Also, I will discuss how to get out of living payday loans in Colorado.

5 Important Colorado Payday Loan Laws You Should Know

1. In Colorado, payday loans are legal cheaper.

2. The maximum amount that can be borrowed through payday loans in Colorado is $500. One or more payday loans can be used to meet the $500 limit. Although payday loans in Colorado do not have a maximum term, they have a minimum term of six months.

3. Payday lenders can charge up to 20% of the loan amount in finance fees for amounts up to $300. For every $100 above the first $300 borrowed, lenders can charge up to $7.50 in addition to standard financing fees. The law allows lenders to charge a 45% interest rate if a borrower renews a payday loan.

4. The law allows repayment plans. However, the terms of these plans may differ between lenders as long as they are legal.

5. Collection of unpaid debts is restricted under Colorado payday loan laws. For “insufficient funds” penalties, lenders can charge up to $25. Lenders can sue borrowers for unpaid payday loans for the full amount of the loan plus attorney’s fees. Borrowers can only be sued if they have closed their current accounts before repaying the loan or debt in full.

Lenders are required to issue refunds for the prorated amount of APR when borrowers repay payday loans in full before the end of the APR loan term.

5 Ways to Get a Payday Loan Solution in Colorado

You need to pay off your debts as soon as possible because these loans come with higher interest rates that accrue until you pay off the debts. Usually, you have to pay the debt when you get your next paycheck, but lenders allow you 30-day payment extensions.

It can seem impossible to get out of a payday loan when you have one. Fear not, there are ways to get the payday loan debt solution and get back on your feet. The sooner you can pay off a payday loan, the better.

Here are some of the ways to escape the clutches of a payday lender:

1. Make full payment

It is advisable to repay your entire loan. This is undoubtedly the best way to eliminate your debt. Most lenders also prefer it. With the help of a well-planned budget, you can afford it. When you make your payments in full, you don’t have to worry about incurring additional debt.

Some states won’t allow you to get a new payday loan unless the previous one has been paid off. Once you have made the full payment, you can make sure to improve your financial health.

2. Opt for an extended payment plan

You can work out an Extended Payment Plan (EPP) with your payday lender. This will allow you to repay the loan in smaller installments over a longer period without incurring additional fees or interest.

Review your finances and determine the largest amount you can quickly pay for your loan each month before speaking with your lender. Make an appointment with your lender to discuss your loan restructuring before the last business day before your loan is due.

If you need to sign a new loan contract for your PEP, study the terms carefully before signing. This way you will avoid unpleasant surprises along the way.

Remember that not all payday lenders will participate in a PEP. However, it’s always good to find out about your lender’s flexibility if you can’t afford to repay your loan on time.

3. Consolidate your payday loans

Why should you consider a payday loan consolidation to pay off your predatory debts?

Usually, when there is a high interest rate, all of your monthly payments go towards paying the interest rate payments. Interest payments are the minimum monthly payments you must make. So, if the minimum monthly payment is high, you are not aware of making further payments. Your principal remains intact and your payday loans remain the same. Therefore, lowering the interest rate through negotiations will help you pay off your debts quickly.

You can also avoid collection agents because the payday loan consolidation company will deal with your creditors. Thus, you can lower the interest rate on your payday loans to make full repayments on them; you can also make one-time monthly payments to pay online.

Various companies offer such services. However, not all of these companies are legit. Contact a reputable debt consolidation company to enroll in a consolidation program.

4. Settle your debts

Debt settlement allows you to get out of your debt situation. It will serve as a proposition to your creditors that you are unable to repay your debts in full and therefore only wish to repay part of your total debt. Most lenders and financial institutions will refuse to enter into a settlement agreement with you and will discuss the lump sum you will offer. However, if you reach a reasonable settlement agreement, all you will see is profit!

The first step is to approach your creditors and lenders on your own and ask them to reduce your overall principal amount to a discounted lump sum. The second step is to locate a reputable debt settlement company or law firm and hire them to complete the task. Following the second path will increase your chances of success. Working out a settlement agreement on your own is a difficult task.

5. Consider taking out an alternative payday loan

Consider getting an alternative payday loan (PAL) if you belong to a credit union. The National Credit Union Administration allows federal credit unions to provide members with loans ranging from $200 to $1,000. When applying for PAL, the credit union may only charge an application fee of up to $20 to cover the actual costs of processing the application. The borrower must have been a member of a caisse for at least one month.

Getting a PAL can be a great way to pay off a payday loan and get out of high interest rates. The term of these loans usually ranges from one to six months. For six months, the same borrower can receive up to three PAL.

Can you file for bankruptcy to get out of payday loan debt?

Bankruptcy should always be a choice of last resort. Filing for bankruptcy has many long-term consequences that will hurt your credit for years. This is why it is essential to evaluate all other possibilities before embarking on this path. If you have too many obligations and not enough money to pay them off, bankruptcy may be possible. Payday loans and your other debts could be erased in a bankruptcy filing.

Tips

You should avoid going into debt again. Payday loans are dangerous. Make an effort to increase your income and avoid living paycheck to paycheck. Payday loans are never a long-term answer to your financial needs, but they can definitely hurt your financial situation. Also, many illegal payday lenders use your bank account details for theft and other illegal actions. I hope you will agree that payday loans should be avoided at all costs. Manage your money better for a secure financial life.

Lyle Solomon has extensive legal experience as well as in-depth consumer credit and drafting knowledge and experience. He has been a member of the California State Bar since 2003. He graduated from the McGeorge School of Law at Pacific University in Sacramento, California in 1998 and currently works for the Oak View Legal Group in California as a senior attorney.

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Democratic leader asks John Bel Edwards to veto payday loans bill | Legislature https://tohoho.info/democratic-leader-asks-john-bel-edwards-to-veto-payday-loans-bill-legislature/ Fri, 27 May 2022 19:50:00 +0000 https://tohoho.info/democratic-leader-asks-john-bel-edwards-to-veto-payday-loans-bill-legislature/ Public Service Commissioner Foster Campbell, the state’s second-longest-serving official and an early supporter of Gov. John Bel Edwards, wrote to the governor on Friday asking him to veto the loan legislation. payday that sat on his desk for the past week. “The last thing Louisiana needs to fight its ranking as the second-highest state in […]]]>

Public Service Commissioner Foster Campbell, the state’s second-longest-serving official and an early supporter of Gov. John Bel Edwards, wrote to the governor on Friday asking him to veto the loan legislation. payday that sat on his desk for the past week.

“The last thing Louisiana needs to fight its ranking as the second-highest state in poverty is payday loan stores luring more low-income people into high-risk, high-fee loans. that they can’t pay back,” Campbell wrote to his fellow Democrat. “As evidence published against the bill shows, there are borrower-friendly options that don’t come with predatory terms like a 36% interest rate and a monthly ‘maintenance fee’ of 13% of the original loan amount.”

The state’s current payday loan system allows lenders to offer a loan of up to $350, due on the borrower’s next payday. The maximum a payday lender can make per loan is $55.

Foster Campbell asked Governor John Bel Edwards to veto a payday loans bill

Senate Bill 381 does not replace or reform this system. Instead, it creates a new product.

Lenders offering the new product described in SB381 would make most of their money from a monthly “maintenance fee” worth up to 13% of the original loan amount.

For a loan of $1,500, these costs would amount to $195 per month.

Edwards staff did not immediately respond to request for comment on Campbell’s veto request.

Get Louisiana policy details once a week from us. Register today.

Campbell, of Bossier Parish, was first elected as a state senator in 1976. In 2003, he joined the Public Service Commission and still serves on the Utilities Regulatory Board, representing a district with voters more than a member of Congress. Campbell ran unsuccessfully statewide as a Democrat for governor in 2007 and for the U.S. Senate in 2016. He was also an early supporter of Edwards.

Is a $1,500 loan worth it if it costs you $1,500 more in interest and fees?

Sponsored by Sen. Rick Ward III, R-Port Allen, SB381 left the Senate on April 19 on a vote of 20 to 14, just enough to pass. State Sen. Gary Smith, whose wife, Katherine Smith, is a registered lobbyist for one of the companies backing the legislation, was the only Democrat in that initial vote to support the measure.

Smith he and his wife did not discuss the bill. Payday lenders are the “one place some people have to go to get a loan. They can’t go to a bank. They can’t go to a credit union,” he said.

A bipartisan milieu was on both sides of the final 54-35 vote in the House on May 10.

Four Democratic senators voted with a 23-13 majority in the final vote on the measure that sent the legislation to the governor. Six Republicans voted no in that final vote on May 16.

Louisiana Democratic Party Chair Katie Bernhardt said the party has not met to take a formal position on the legislation. But Democrats generally oppose payday loans.

House Democratic Caucus Chairman Sam Jenkins, D-Shreveport, said Friday that Democratic lawmakers have yet to meet. “It will be something we huddle on,” he added.

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Oak Park Financial is widely regarded as the largest payday loan provider in Canada https://tohoho.info/oak-park-financial-is-widely-regarded-as-the-largest-payday-loan-provider-in-canada/ Mon, 23 May 2022 07:00:00 +0000 https://tohoho.info/oak-park-financial-is-widely-regarded-as-the-largest-payday-loan-provider-in-canada/ Section 347 of the Criminal Code specifies that payday loans are legal in Canada and are not prohibited. With respect to payday loans, Section 12(1) of the Criminal Code states that a lender must follow a set of guidelines before granting the loan. Are there places in Canada where I can get the fastest and […]]]>

Section 347 of the Criminal Code specifies that payday loans are legal in Canada and are not prohibited. With respect to payday loans, Section 12(1) of the Criminal Code states that a lender must follow a set of guidelines before granting the loan.

Are there places in Canada where I can get the fastest and most convenient payday loan?

Oak Park Financial, which offers high quality payday loans with more than $1 billion in assets under management, is the nation’s largest online cash advance provider for payday loans, according to the National Cash Advance Association. provides fast and reliable cash assistance that is both fast and cost effective in nature.

A payday loan application can be completed in as little as 5 minutes! The first step in using our online loan services is as simple as selecting the red icon on the right and clicking “Get Started”.

What type of personal loan is the easiest to acquire?

Having a terrible credit history is a problem. The ability to obtain secured loans, such as mortgages and title loans, is often based on the availability of collateral, which serves as proof of financial viability rather than credit history, and the amount of collateral available . Nevertheless, unsecured internet payday loans are a viable option because they do not require you to visit a physical establishment to be approved.

What are the advantages and disadvantages of taking out a personal loan?

Payday loans are available for people with less than perfect credit or with little or no income, and they do not require a source of income or access to a bank account to be approved. payday loans, particularly if it appears that the borrower may not be able to repay them in a timely manner, and have offered alternative lending methods to address this concern

Is it possible, in your opinion, to get a loan accepted as soon as possible?

Payday loans, vehicle title loans, pawn loans, and personal installment loans are the easiest types of loans to approve when it comes to acceptance. The majority of consumers with bad credit who need short-term financing can qualify for one of these loans. People who need urgent cash in an emergency scenario may find these solutions useful in some cases.

Is it possible to borrow money right away from the comfort of your own home?

Use a fast online loan to get money in your account the same day you submit your application, and you’ll have it in your account the next business day. Due to the fact that the loans are easily available through the internet, applying for them is a simple process.

Could you please let me know where I can get the money as soon as possible?

  • Your search for a lender on the internet has been successful.
  • Credit unions are the skeletons of the credit union system and they are the foundation of the system.
  • There are also traditional financial institutions to consider.
  • Credit card advances are a kind of advance (cash advance)
  • Friends and family members
  • When it comes to providing financial assistance to people in need, there are a very small number of payday lenders available.

What is the total number of payday loans issued in the United States?

According to Algernon Ronson of Oak Park Financial, more than 2 million Canadians are expected to be unable to pay their payments each year due to a lack of finances due to a lack of cash. Any charge that exceeds 60% of total annual charges is considered a violation of the Criminal Code. On the other side, the provinces have the possibility of choosing to be exempted from the rules.

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Payday loan borrowers charged high rollover fees despite consumer protections: CFPB https://tohoho.info/payday-loan-borrowers-charged-high-rollover-fees-despite-consumer-protections-cfpb/ Fri, 06 May 2022 12:45:15 +0000 https://tohoho.info/payday-loan-borrowers-charged-high-rollover-fees-despite-consumer-protections-cfpb/ Payday lenders offer short-term loans and cash advances, but those products come with high interest rates that often lead to a debt trap, the CFPB found. (iStock) Payday lenders provide small loans that are repaid in one lump sum, usually on the borrower’s next payday. Although these loans can offer quick funding without a credit […]]]>

Payday lenders offer short-term loans and cash advances, but those products come with high interest rates that often lead to a debt trap, the CFPB found. (iStock)

Payday lenders provide small loans that are repaid in one lump sum, usually on the borrower’s next payday. Although these loans can offer quick funding without a credit check, they often trap consumers in a cycle of debt due to the short repayment term and high annual percentage rate (APR).

Of the 26 states that allow payday loans, 16 of them require lenders to offer free extended payment plans to deter reborrowing. But even in states that have implemented these consumer protections, payday loan borrowers continue to pay high rollover fees, according to a new report the Consumer Financial Protection Bureau (CFPB).

SEARCHING FOR DEBT RELIEF? HERE’S HOW CREDIT ADVICE CAN HELP YOU

“Our research suggests that state laws that require payday lenders to offer extended repayment plans at no cost are not working as intended,” CFPB Director Rohit Chopra said. “Payday lenders have a strong incentive to protect their income by encouraging borrowers to re-borrow in expensive ways.”

Keep reading to learn more about the recent CFPB study, as well as how to break the cycle of payday loan debt. One option to consider is consolidating payday loans into a fixed rate personal loan. You can visit Credible to compare debt consolidation loans for free without affecting your credit score.

DEBT CONSOLIDATION VS. DEBT SETTLEMENT: WHAT’S THE DIFFERENCE?

Extended payment plans can save borrowers money, but many don’t use them

If a borrower can’t repay their payday loan, they have a few options: roll over their loan for another two weeks, default on their loan, or sign up for an extended payment plan — at least in the 16 states that have it. require.

On a typical $300 payday loan, borrowers can realize substantial savings by using a payment extension rather than rolling over the loan. The CFPB estimates that a borrower will incur $360 in rollover fees over the course of four months, compared to a one-time fee of $45 for an extended payment plan.

Despite the obvious benefits, extended repayment plan utilization rates in states that offer this option are still far lower than payday loan rollover rates. In other words, payday loan borrowers were much more likely to roll over their loans rather than use an extended repayment plan.

For example, the churn rate was 16.4% in Wisconsin last year, compared to the extended payment plan utilization rate of just 2%. And just 0.4% of Florida payday borrowers use payment plan extensions, while more than a quarter (26%) have 10 or more loans.

If you’re having trouble repaying multiple payday loans, you might consider consolidating them into one personal loan. Unlike payday loans, personal loans offer fixed interest rates and longer, more predictable repayment terms. You can read more about payday loan consolidation on Credible.

WHAT ARE CREDIT UNION LOANS AND HOW CAN I GET ONE?

Eligibility Criteria May Contribute to Low Extended Payment Plan Utilization Rates

One of the reasons for the low use of extended repayment plans is “substantial variation in eligibility requirements” that payday loan borrowers must meet under state regulations, the CFPB found.

Alaska law requires borrowers to repay at least 5% of the outstanding loan balance before being eligible for a payment plan extension. Utah allows lenders to charge a 20% upfront payment if a borrower enters an extended payment plan after default.

In Florida, borrowers must enroll in credit counseling services to be eligible for an extended grace period. This can be a potential and time-consuming hurdle for borrowers who feel the urgency of missing a loan repayment.

Only seven of the 16 states that require extended repayment plans require lenders to inform borrowers of this repayment option before taking out a loan. And in most states, borrowers can only use one extended repayment plan over a 12-month period.

As an alternative to payday loan rollovers and extended repayment plans, some borrowers might consider paying off their debt with a fixed rate personal loan. Debt consolidation can help you spread the repayment of your debts over a longer period. You can compare current rates in the chart below and use Credible’s personal loan calculator to estimate your monthly payment.

5 SMART WAYS TO CONSOLIDATE CREDIT CARD DEBT

You have a financial question, but you don’t know who to contact? Email the Credible Money Expert at moneyexpert@credible.com and your question might be answered by Credible in our Money Expert column.

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Should you ever take out a payday loan? Here’s what Dave Ramsey thinks https://tohoho.info/should-you-ever-take-out-a-payday-loan-heres-what-dave-ramsey-thinks/ Mon, 02 May 2022 10:00:32 +0000 https://tohoho.info/should-you-ever-take-out-a-payday-loan-heres-what-dave-ramsey-thinks/ Image source: Getty Images If you’re struggling to find cash to cover an unexpected expense, payday loans may seem like a viable solution. These loans are often available immediately and are accessible even if you don’t have perfect credit. They have short payment terms, and you’re usually expected to pay them back with your next […]]]>

Image source: Getty Images

If you’re struggling to find cash to cover an unexpected expense, payday loans may seem like a viable solution. These loans are often available immediately and are accessible even if you don’t have perfect credit. They have short payment terms, and you’re usually expected to pay them back with your next paycheck, plus fees on top of what you borrowed.

Although payday loans are easily accessible, they have serious drawbacks, including the fact that they are very expensive.

Therefore, you will want to think carefully about whether this is the best method of borrowing before you go ahead. If you’re trying to decide, a few tips from financial expert Dave Ramsey might help.

Here’s what Dave Ramsey thinks about payday loans

Ramsey is well known for his opposition to all forms of debt, so it’s probably no surprise that he advises against taking out payday loans.

In fact, on the Ramsey Solutions blog, payday loans are referred to as “a slippery slope to a cycle of debt that is not easy to escape.”

As Ramsey explains, many payday lenders charge high fees and give you little time to repay the borrowed money. Because the fees are so high, people who take out payday loans often end up having to borrow money again to pay it back.

Borrowers have generally been required to write post-dated checks or provide access to their bank accounts, so they have no choice but to make the initial payment when it is due. But they end up having to take out another payday loan right away because the original loan plus fees are so expensive that they can’t cover the loan and pay their other bills.

The result is that you end up incurring so many fees because you keep borrowing, you end up paying an extremely high interest rate – which can be as high as 900%.

Because payday loans usually end up being so expensive and leaving you trapped, Ramsey’s blog states that “payday lenders are the gangsters of the financial industry.”

Is Ramsey right?

Ramsey’s concern about certain types of borrowing, such as mortgages, is not well justified. But when it comes to payday loans, the finance guru is absolutely right.

These loans are one of the most expensive ways to borrow, and payday lenders are often predatory and target people who can least afford to pay high rates. Hence, it is best to avoid these loans at all costs.

Ideally, you’ll have an emergency fund, which Ramsey recommends, so you don’t have to borrow to cover unexpected costs. But if you don’t have the money yet and a surprise expense has arisen that you need to pay, you should consider other options.

Same day loans from personal loan providers may be a good alternative, and even using a credit card may be preferable to a payday loan. Although the cards have high interest rates, they are lower than payday loan rates — and a credit card offering a 0% introductory APR on purchases can allow you to finance your expenses over time without interest charges.

Of course, sometimes payday loans absolutely cannot be avoided. In this case, you should aim to pay them back as soon as possible and not borrow again so that you don’t find yourself in a debt trap that is difficult to get out of.

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3 payday loan alternatives you need to know – The Suffolk News-Herald https://tohoho.info/3-payday-loan-alternatives-you-need-to-know-the-suffolk-news-herald/ Thu, 28 Apr 2022 14:41:54 +0000 https://tohoho.info/3-payday-loan-alternatives-you-need-to-know-the-suffolk-news-herald/ Source of images Sponsored content If you are in dire need of money due to an emergency or similar situation, the first thing that probably comes to mind is payday loan. Payday loans, or as some call them, payday advances, are short-term loans that let you borrow against your next paycheck. However, due to the […]]]>


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If you are in dire need of money due to an emergency or similar situation, the first thing that probably comes to mind is payday loan. Payday loans, or as some call them, payday advances, are short-term loans that let you borrow against your next paycheck. However, due to the immediate nature of the loan, it usually comes with a high interest rate.

Of course, this interest rate or fee depends on the lender you chose to take the payday loan from and the amount you borrowed. Also, one of the best features of payday loans is that they usually don’t have strict credit check requirements. Some lenders don’t even require them and instead look at the person’s ability to repay.

Although payday loans are quick, easy and convenient, they may not be the best option for you. In fact, some people don’t prefer payday loans unless they have no choice. If you’re looking for alternatives, here are a few that might interest you.

Loans to credit unions

credit unions work similarly to banks as they offer the same products and services like personal loans, credit cards, direct deposit, mobile banking, etc. Their main difference from traditional banks and lenders is that they are non-profit organizations. This means they usually have a lower interest rate on the loan and pass the savings on to their members.

Credit unions are member-owned organizations that operate to help their members financially. While lower interest rates on their loans, high interest rates on their savings accounts, loan discounts, and better repayment terms all sound good, there’s a catch.

First, you must be part of a credit union. Credit unions are usually found among homeowners associations, PTA members, congregants, etc. Moreover, it is not enough to be a member. Sometimes a member must be in good standing with the organization or make significant contributions to it.

Loans for bad credit

One of the most common reasons people opt for payday loans is that they have little or no credit check when they apply. It’s probably because they have a bad credit rating overall. If you’re one of those people, you’re probably considering a payday. online loan. However, there is one type of personal loan you can get if you have bad credit, and that is bad credit loans.

As the name suggests, bad credit loans are a category of personal loans designed for people who have low credit scores or are just starting their credit. Bad credit loans are usually the type of loan to borrow when someone does not qualify for a traditional personal loan. However, they work the same way as personal loans. The lender will give you the money in one installment and you will have to repay it in monthly installments.

They are usually founded in traditional banks and lenders. As we all know, banks and traditional lenders usually have strict lending requirements. They will review your creditworthiness and determine if you qualify for a regular personal loan. However, when you are not, they have the option of offering you a bad credit loan.

As mentioned earlier, bad credit loans work the same way as regular personal loans, but with a catch; they tend to have higher interests. Also, they have a strict repayment schedule and usually charge a fee when you miss a single payment.

Pawnbrokers

To get a pawn loan, you need to own something of value. Popular items that will earn you money are jewelry, paintings, gadgets, vehicles, etc. You can even pawn particular items that might pique the interests of the pawnshop owner.

Of course, you should also be prepared to make this item your collateral. Staff would then be evaluated. Item appraisals will assess the item’s current market value, resale potential and condition. After that, they will then decide whether they want to offer you a loan or not based on the assessment. If the item passes the appraisal stage, you will go home with the money and the pledge note if you accept the loan.

This pledge ticket is important because it allows you to take back the pledged object. You return at the agreed time, usually a few weeks or a month at the most, to repay the loan and collect the item you have pledged.

Last words

Although payday loans are quick and convenient, they are not necessarily the cheapest option. They have a mixed reputation, so might as well opt for alternative options.

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Report: Wisconsin payday loan borrowers pay among highest fees in nation https://tohoho.info/report-wisconsin-payday-loan-borrowers-pay-among-highest-fees-in-nation/ Mon, 25 Apr 2022 07:00:00 +0000 https://tohoho.info/report-wisconsin-payday-loan-borrowers-pay-among-highest-fees-in-nation/ According to a report by The Pew Charitable Trusts, Wisconsin residents who take out short-term payday loans face some of the highest costs in the United States. Bench information note found that Wisconsin residents pay an average of $395 in fees when repaying $500 loans over a four-month period. This equates to an average interest […]]]>

According to a report by The Pew Charitable Trusts, Wisconsin residents who take out short-term payday loans face some of the highest costs in the United States.

Bench information note found that Wisconsin residents pay an average of $395 in fees when repaying $500 loans over a four-month period. This equates to an average interest rate of 338%.

“Borrowers in states without adequate regulatory safeguards pay only a small fraction of principal in each monthly payment and APRs in the 200, 300 or even higher ranges,” the report said. “Previous research from Pew found that typical payday loan borrowers can afford payments equivalent to about 5% of their income or $125 per month, but high-cost installment loans often require payments that exceed $200. $ – even $300 – per month.

Pew compared fees in states like Colorado, Hawaii, Ohio and Virginia that have enacted payday loan reforms with those that have not. On average, the report says residents of reformed states pay between $110 and $158 less than those who don’t reform when repaying $500 loans over four months with interest rates between 114 and 144%.

“The laws in these states offer significantly lower prices, reasonable repayment terms and affordable installments, the three key elements of successful reform,” the report said.

Alex Horowitz is a senior executive at Pew’s Consumer Finance Project. He said Wisconsin is one of seven states that does not cap interest rates charged by payday lenders, adding that companies have argued capping interest rates would bankrupt them and limit access to credit. But he said many payday lenders operating in Wisconsin are still doing business in reformed states like Colorado and Ohio.

“The difference is they charge Wisconsin residents double or triple what they charge in states like Ohio, Virginia, Colorado, Hawaii,” Horowitz said.

The report says lenders across the United States charge the maximum interest rates allowed by state law “and only lower prices if necessary.”

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In April 2021, Republican lawmakers in Wisconsin introduced legislation this would cap payday loan interest rates at 36% and render payday loan repayments with higher interest rates inapplicable.

Current Wisconsin laws include no limit on the amount of interest payday lenders can charge before a loan matures.

The resolutions were not passed at the end of the legislative session.

Data from the Wisconsin Ethics Commission shows the City of Milwaukee, Outagamie County Board of Supervisors, Wisconsin Credit Union League, Wisconsin Public Interest Research Group and Chapter of the National Association of Social Workers-Wisconsin have signed up in favor of the reform bills.

The Wisconsin Bankers Association, Cottonwood Financial Ltd. and Axcess Financial Services Inc. have filed against bills capping interest rates on payday loans.

Horowitz said legislative reforms in Wisconsin and other states are needed to protect vulnerable borrowers from further financial stress.

“It’s a problem that affects households that live paycheck to paycheck,” Horowitz said. “And that’s why we see borrowers who are in dire straits and are accepting interest rates over 300 percent.”

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