There has been much discussion as to the viability of short-term cash advance or payday loans in the news over the past few years. Some have even called for their outright prohibition. However, critics of the popular credit choice are quick to admit that there is a real need for these payday and personal loans. In spite of the apparent need for short-term credit (especially in this economy, which lacks abundant credit) some pundits speculate that these cash advance loans are on their way out thanks to the recent election of Mr. Obama and some liberal democrats. So what is in the wing to replace this necessary short-term product? Many familiar with the payday advance industry suggest it may be installment loans.
Installment loans are a different lending product that gives consumers even greater repayment flexibility. Demorats could hardly call these loans “predatory,” although federal officials once gave their express blessing to truly predatory loan products such as subprime mortgages, HELOC loans, and other high dollar loans tied to housing products.
With these short-term installment loans, consumers can repay in full at any time prior to their loan’s stated maturity date - which they choose at the outset of the loan - or they can make a set number of payments (typically around 20) over a period of weeks, normally bi-weekly. Costs are affordable and give the consumer much more of a safety net if they are unable to pay their loan in full on the two-week maturity date most payday loans have. Short-term lending and the fees and interest associated with it isn’t going away… it’s definitely changing, but you can be assured that consumers will pay as much or more with installment loans.
Saturday, 8. November 2008
Payday advances can be a great asset when one is in a bind and needs some money fast. Each individual should be allowed to decide how to handle their finances and should be allowed to get a loan if they need it. This choice should not be taken away from the individual.
Thursday, 18. December 2008
First of all congratulation for such a great site. I learned a lot reading article here today. I will make sure i visit this site once a day so i can learn more.
Tuesday, 30. December 2008
Payday Loans are so great when you find yourself in an emergency situation. If you are in an emergency, then get one and get out of it quick. The sooner you pay it back, the less interest you will end up paying. Be smart people!
Friday, 6. February 2009
ofcourse there is need for these loans and, the government should butt out and quit questioning mine and other intellegence , if I want a payday loan then deal with it.
Sunday, 22. February 2009
I think payday loans work for alot of people. The key is to pay the full amount as soon as possible so that you won’t end up pay all that interest.
Payday loans are supposed to be exactly that, a loan until you get your next pay check.
Monday, 2. March 2009
I think payday loand and title loans get a bad rap because of the interest rates. There are so many people that use the services that are offered, and as long as you are ok at managing your finances I don’t see anything wrong with getting a post dated check loan.
Friday, 3. April 2009
Short term loans are becoming more and more popular for those people who are not able to make the bills with a small paycheck they get from work. I think they are a great resource, if you can manage your finances well.
Wednesday, 8. April 2009
Agree, there is a need for payday loans. And if banks don’t offer them, who will?
Friday, 29. May 2009
I think that payday loans help many so it should not be altogether scraped. But the person who are taking it should be made aware of all the negative aspects of this loan
Friday, 5. June 2009
If you are in a terrible credit situation when it comes to getting a loan. A payday loan is a small and very short-term loan that is used to cover emergency cash needs. It is usually a short-term loan that you take out for your personal needs.
Tuesday, 7. July 2009
Can you walk into a bank, and walk out 15 minutes later with a short term loan? No. Banks only loan to people with great credit.
Friday, 2. October 2009
I have almost a 700 credit score.. But most of the banks will not loan small amounts of money anymore. It has to be a minimum of $5,000. They will encourage you to apply for a credit card instead. My credit union stopped doing unsecured loans period. Again they will encourage you to apply for a credit card.
I use Payday loans on a regular basis. I do not have the income that I made last year. So they do come in handy.. If you overspent a few hundred dollars.. It is much cheaper to take out a loan and pay it off as quickly as possible instead of hefty overdraft fees. Borrowing $200.00 at 571% interest for 5 days costs maybe $20.00.. Bouncing 4 checks costs $160.00 in bank fees.