How could a payday loan help me?

We’ve all heard of payday loans and seen the adverts for them, but most people don’t really understand what they are or why they might be useful. If you’ve wondered whether you could benefit from using a payday loan, here are the key benefits of payday loans to help you decide:

1. Get the cash you need – FAST!

Payday loans are a really easy way to get hold of small amounts of money in as short a time as possible. In fact, in the majority of cases, it’s possible to research easy payday loans, apply for cash and have the funds in your bank account within just next business day! For this reason, payday loans are particularly beneficial for people in tight situations where they need money fast. Examples include those who are about to miss bill payments that would lead to penalties.

2. Only borrow as much as you need

Most loans require you to borrow a fixed amount of money in multiples of $100 or $1,000. But what if you only need to borrow exactly $635 to pay a particular bill? Borrowing $1,000 in order to make this payment would mean paying interest on money you didn’t need to borrow in the first place, as well as requiring longer to pay it all back. With a payday loan, you can borrow the exact amount that you need at the time that you need it.

3. Few eligibility criteria

You shouldn’t have to meet a long list of requirements in order to qualify for a payday loan. Typically you simply need to be a US citizen, 18 years or over, in steady employment, and to have a bank account that accepts direct deposits. However, remember to ask about all of the eligibility requirements for your chosen payday loan before starting the application process.

4. A quick process

Getting a payday loan is simple and quick. And getting rid of the debt is simple and quick too, as long as you make your repayment on time. The majority of payday loans can be in your bank account within next business day of starting the application process. And the idea is to repay the loan when your next payday arrives, meaning that most payday loans are repaid within a couple of weeks.

If you think a payday loan could help you get out of a tight spot, look at online payday loans and find a solution today.

Getting to grips with your debts

Some people are able to get their debts under control by reducing their monthly outgoings, maximizing their income and paying back a little bit extra each month. But for millions of Americans, the mountain they have to climb to deal with their debts calls for more extreme measures. Here are the top three avenues that people can pursue to bring their struggles with debt to an end.

1. Filing for bankruptcy
Bankruptcy may seem like a frightening concept, but it can be a useful way to reduce or even eliminate your debt if you are in serious difficulty and can see no other way out. It is actually an act governed by law that is specifically designed to help people get out of debt.

Personal bankruptcy comes in two main forms – Chapter 7 and Chapter 13. If you have large amounts of unsecured debts (such as credit cards, unsecured loans and medical bills) and few assets, then Chapter 7 is likely to be the most appropriate solution. It gives people a fresh start by eliminating most types of unsecured debt.

Alternatively, if you and your family have a high income, a Chapter 13 bankruptcy may be more suitable. This allows you to pay back a percentage of your overall unsecured debt, typically over the course of three to five years.

2. Debt settlement
Debt settlement programs are becoming increasingly popular in the US, as they can be an effective way of getting back on track. The debtor is initially asked to open a new savings account and deposit some money. Negotiations then begin in an effort to reduce the overall amount owed to lenders. The funds in the savings account are then used to settle their outstanding account balances.

Unlike bankruptcy – which is court-ordered – lenders involved in debt settlement negotiations are not under any legal obligation to agree to reduce people’s debts. However, many see it as in their best interests to get some form of payment from the debtor, even if it is not the full amount, and are willing to enter into negotiations. Debt settlement is therefore proving popular with both those in debt and lenders.

3. Credit counseling
Credit counseling programs are less well-known than bankruptcy and debt settlement, but they offer an attractive solution for many people with debt problems. In essence, the debtor pays a financial advisor to look at their finances and help them to budget more effectively. It often turns out that a person’s situation is less bleak than they initially thought and that, with a concerted effort to reduce spending and maximize income, their debts can gradually but steadily be repaid without resorting to bankruptcy or settlements with lenders.

If you are feeling overwhelmed by your debts, consider the three options listed above and work out the best approach for you. Speak to an advisor if you are unsure about the best way to proceed.

Want an installment loan? Here’s how to get one

Working out how to find the money for a new car or home improvements can be tricky. Thankfully, once you’ve made the decision to use an installment loan, getting the money into your bank account is surprisingly pain-free.

Applying for an installment loan is similar to getting hold of other popular types of credit. But it’s important to think carefully about the following things before making a final decision about whether or not to apply:

  • Why do I need an installment loan?
  • How much money do I need to borrow?
  • How much can I realistically afford to pay back each month?
  • Will I be able to manage the repayments without difficulty?
  • Do I really need to take out an installment loan?

Once you’ve worked out the answers to those important questions, the next step before applying is to ensure you’re eligible for an installment loan. For instance, you need to satisfy the following criteria:

  • You need a checking account to make payments from
  • You must be an American citizen
  • You must be 18 years or over
  • You must be employed or have a regular income
  • A respectable credit score is needed

Once you’ve determined your eligibility, it’s time to compare installment loans and find one from a reputable source that meets your needs.

How to find a good installment loan

Thankfully, it’s easy to find an affordable installment loan these days, as many companies offer loans online. People often approach their existing bank in the first instance, but this is rarely the cheapest way to proceed. Instead, it’s worth going online and comparing the wide range of installment loans that are on offer.

Always look at how much the loan will cost. You don’t want to pay an unnecessarily large amount of interest if cheaper loans are available.

Another tip is to look at unbiased reviews of a company or financial institution. In particular, try to find out whether they have provided a good service to borrowers in the past and are known for treating their customers well.

You’ll also need to take your own credit score into consideration. Some lenders will consider applicants with a poor credit record, while others will not. There is little point in applying for an installment loan with a lender that is unlikely to consider you on those grounds. The good news is that once you’ve found a lender who is willing to accept you, your credit score should quickly start to improve if you make all of your repayments on time.

Filling in the request form

Completing the online loan request form shouldn’t take long and you should get a decision very quickly. It’s important to be completely honest when filling in your details. While most companies don’t ask to see any paperwork to back up what you’ve told them, some do. And be prepared to provide proof of income, age and citizenship.

Once you’ve been approved, you’ll need to complete some final paperwork. This can usually be completed online with an electronic signature, although some companies will ask you to mail the paperwork. At this stage, it’s vital that you double-check how much you’re borrowing, how much you’ll need to pay each month – and when – and how long you get as a ‘cooling off’ period in case you change your mind. Only once you’re certain you’re happy with the terms and conditions should you sign and submit the paperwork.

If at first you don’t succeed…

Don’t be afraid to try again with a different lender! Just because one lender has turned you down doesn’t mean others will do the same. Think about why your application was declined and try to find installment loan companies that are more likely to consider lending to you. You should still be able to get hold of the money you need with a little perseverance!