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What is a Payday Loan & How Do I Get One?

October 8, 2019 by marvin

Sometimes unexpected situations arise that call for extra
cash. Whether it's car troubles, emergencies, or whatever else life throws your
way; you might need more money than you have. That's where a payday loan comes
in handy! These short-term loans are a convenient way to access funds you
wouldn't be able to otherwise.

Typically, the payday loan lender advances you a portion of
your next paycheck with a high interest rate on top of the principal amount.
Every state has it's own laws in place governing the payday loan process,
though most follow a similar set of guidelines.

To qualify for a payday loan, you will need to provide proof
of income, most likely employment income. Though some lenders also advance a
smaller amount if you receive social assistance benefits. You must give the
lender copies of your government-issued identification along with any other
documentation requested of you. These might include a bank statement, paystub, or
proof of address.

Most loan providers operate with physical locations where
onsite applications and approvals are available. Though, there are some online
lenders available now, too. With online payday loans, the process is very
similar to onsite applications. The only difference is that you would need to
submit any documents electronically. You might also have to wait a little
longer to get your cash.

Approvals aren't usually based on your credit score, but
rather on your proof of employment and income. So anyone with less than perfect
credit can still expect an approval so long as you can prove you're able to
repay the loan.

A cash advance might come in handy if you find yourself
short on cash. You won't need to explain yourself or justify needing the loan.
Most times, the staff is friendly and helpful, and the whole process takes less
than 30 minutes.

How to Get a Payday Loan

September 27, 2019 by marvin

What are payday loans?

Payday loans are short-term, high-interest loans lenders extend to borrowers based on their income and banking information. Payday loans are small amounts (generally $500 or less) and are repaid when the borrower receives their next paycheck, hence the name payday loans.

Payday loans are typically paid off in one lump sum, but some state laws allow lenders to extend the due date of the loan as long as the borrower pays the fees due. Some payday loans may even be structured to be repayable in installments, similar to an installment loan, over a longer period of time.

Who should get a payday loan?

Most people use payday loans to take care of emergencies that can't wait until their next paycheck. For example, if your car gets a flat tire, you probably cannot wait until payday to fix your car — especially if this is your only vehicle. Payday loans are perfect for these emergencies when you need cash now.

How do I get a payday loan?

You can apply for payday loans online, over the phone, or in stores.

You must have a steady source of income.
- You will need your checking account number and your bank's routing number for most payday loan applications.
You must reside in the state where you choose to get a payday loan.
You must be at least 18 years old. Some state may require you to be older.
Some states require documentation (pay stub, bank statement, social security card, photo ID, etc.) before your loan will be granted.

My Debt has Been Turned over to a Collection Agency. Now What?

September 24, 2019 by marvin

Ok, so you've just defaulted on a payday loan, and your debt has been turned over to a collection agency. Granted, this delinquency will stand out on your credit report, and your credit score will decrease, but you can still recover from that. Note that this event will appear on your credit report within three to six months after you defaulted on your loan.

The best thing to do when your debt goes to a collection agency is to understand how these agencies operate. There are several points involved in this process:

Your debts may be sold or assigned to a third-party: the payday lender, which is the creditor in case of a payday loan, may choose to turn your debts to the collection agency or sell the debt. If your debt is assigned, the collection agency will try to get the money back in the creditor's name. If it is sold, the debt will become fully theirs.
If the debt was assigned, the collection agency can only sue you if they get authorization from the creditor. Once the creditor passes the debt to the collection, the agency will contact you within a few days. All experienced debt collectors know that the best way to recover a debt is to strike quickly. If you're unaware of how collection agencies can find you, here is a comprehensive list.
The agency will send their best agents to collect the money you owe them. The agents will do their best to coerce you to pay back the loan. In 2019, the agents have started to use high-tech methods to find you.
Talk to an attorney: in case you struggle with an aggressive debt collector, contact an attorney and either negotiate a settlement or possibly even prepare for a lawsuit for nonpayment of payday loans deb.

How to Get Out of Payday Loan Debt

September 20, 2019 by marvin

If you're currently stuck with a payday loan that you can't seem to ever pay off, you aren't alone. According to the Consumer Financial Protection Bureau, more than 60% of borrowers are trapped in payday loan debt. Those trapped in payday loan debt often roll over the loan and end up paying more in fees than their initial loan amount.

Even if you find yourself in the midst of the payday loan
debt cycle, there are strategies to help you break the cycle and get out of payday
loan debt.

Extended payment plans allow borrowers to pay back their loan in installments over a longer time period. Check with your payday lender to see if this type of arrangement is offered.
Contact your state regulators if payday lenders refuse to work with you on an extended payment plan. State regulators may be able to negotiate a payment plan with your payday lender.
File a formal complaint against the payday lender if it refuses to work with you on a payment plan. Complaints can be filed with your state regulator or with the Consumer Financial Protection Bureau.
Find an alternate loan source to pay back your payday loan in full. This could be from a traditional lender like a credit union or bank or a family member.
Seek credit counseling for help with strategies to better manage your payday loan debt. Counseling is offered from many nonprofit organizations – just make sure to do your research when finding a reputable organization.
Look for payday loan debt assistance like a debt management plan (DMP) or a debt settlement program. A DMP is a debt-relief option that will work with your creditors to come up with a monthly payment plan. You will deposit your money into an account that a debt management company uses to pay your bills. A for-profit company can negotiate a debt settlement program to pay a lump sum (or settlement) to pay off your debt. The settlement is typically less than the full amount owed, and it will require that you make regular payments into the settlement until the full settlement amount is reached.
Bankruptcy is sometimes the only way to get out of serious debt, but it will come with consequences like a large blemish on your credit report for many years.

Getting out of payday loan debt will help you get your finances
on track. While it will require time and effort, breaking free from the payday
loan debt cycle will be worth it to build ongoing financial security for your
future.

Debt Collectors Now Using High-Tech Methods

September 17, 2019 by marvin

If a debt you owe is turned over to a collection agency, there's a good chance a debt collector may employ high-tech methods to convince you to pay up. In today's society, a simple letter, phone call, or Internet search isn't the only way a debt collection agency can try to collect on debt. New, high-tech collection methods save labor and may skirt the rules of engagement.

Here are three, high-tech debt collection methods agents are now employing:

Avatars. Debt collectors can now use a virtual collection agent avatar to help collect online payments. Some reports indicate avatars that help debtors walkthrough payment processes on a website are three times more likely to make payments because the avatar comes across as warm and friendly.
Ringless voice mail drops. Software now allows collectors to insert voice mails into phones without them ever ringing. Sometimes inserting thousands of messages at a time. This allows collectors to skirt around regulations restricting how often and at what times they can call consumers.
Speech Analytics. CallMiner Inc. has developed software to help keep phone conversations on track. If a call veers off track, supervisors using the speech-analytics system see color-coded boxes that indicate problem areas in the conversation. This allows the supervisor to take over the call or to help the agent to smooth things over.

Click here to see other, more traditional, methods debt collectors may use to find you.

How Debt Collection Agencies Find You

September 10, 2019 by marvin

Debt collectors can use many methods to find out where you live. However, they may not always know exactly where you live — especially if you've moved since defaulting on your loan with the original creditor.

Collection agencies can use any of the following methods to find people.

Banks: Your current or former bank may provide your address to a collection agency.
Contacts: Collection agents will often call your references listed on your original credit application to try to track you down.
Credit bureaus: The collection agency will have access to a lot of information if it is associated with a credit-reporting agency. If it isn't a part of a credit bureau, the collection agent can place your name on a credit bureau locate list that will forward your name to the collection agency if you attempt to apply for credit.
Data aggregators: data aggregators gather and sell information, and much of it is now available online.
Internet searches: Organizations where you're involved (churches, class reunions, PTAs, etc.) put a lot of information online, which might help collection agencies find you after using a simple internet search.
Original credit application: The original creditor will provide the collection agency with the information from your credit application.
Phone books: Online or print phone directories are good sources of names, addresses, and phone numbers. Collection agents may also use a reverse directory to find your address using your telephone number.
Post office: Agents may check the post office for a forwarding address if you've moved. Credit bureaus receive monthly, change of address updates from the U.S. Postal Service.
Pretexters: Pretexters often obtain personal information illegally or by using false pretenses, such as pretending to be you to obtain personal information.
Skip tracers: a skip tracer is a professional who locates a person who can't be found at their residence or usual hangouts. Spic tracers use any number of resources and databases to find a person who has defaulted on a debt.
State motor vehicle department: Depending on your state laws, collection agencies can use the state motor vehicle database to verify your address.
Utility company: A collection agent may be able to find you through a utility company, but the process is difficult.
Voter registration records: If you've registered to vote after a move, the registrar will have your address or forwarded cancellation information from your new county.

While it may seem like a debt collection agency will use any means to find you, there are some things they cannot do. Click here to see 15 things debt collectors can't do.