Christian Guide To Payday Loans
A Christian guide to payday loans is certainly important to read before diving into what many people consider quite dangerous or detrimental financial decisions with these types of lending agreements. Some states have even put so many restrictions on them because of poor past lending practices that entire chains have fled certain areas of the country. But then again, many people need these types of agreements to make it from one wage to the next. Much of the profit success of businesses providing these agreements is due to the very high amount of debt Americans are carrying. It has been estimated that seventy percent of all debt is eating up much of the discretionary spending that in the past could have been used for savings but those times are gone. The personal obligations Americans hold is in the tens of trillions of dollars.
One of the real strong attractions to these kinds of situations is the lack of a credit check. A financial guide needs to include how the various types of borrowing works. A prospective person needn't worry about how poor his credit history and score are to get a a variety of types of funds. Instead, because the obligations are only for two week periods, the business is concerned with a few details. First, the person must have a current job and show proof of employment. Secondly, they want to see proof of an active checking account and thirdly, wants to see a utility bill at the location offered in the application. This is an important part of the discussions and negotiations.
Securing one of these types of funding is quite simple. An individual should first check to see if the place of business offering a payday advance has a guide posted clearly on the inside walls of the establishment. All costs, fees and rates should be clearly delineated for all to see. In fact, the cost of the terms should even be on the check received from the lending institution. In addition, a one should also ask to see if the corporation is licensed and has a permit issued from a local governing entity before making any transactions. In fact, a trip to the local Better Business Bureau is probably warranted to see how they handle disputes with customers.
Once all these preliminary checks have been made, one should make out a personal check to the corporation for whatever amount is desired and allowed. The amount that can legally be lent under these terms is limited by state law and differs from state to state and perhaps even city to city. However, included in the actual amount of the cash must also be the fees and costs for that two week period. This begins the intense discussion in any type of guide to payday loans. "For where your treasure is, there will your heart be also." (Luke 12:34)
Interest rates can be exorbitantly high. Outside the United States, in the United Kingdom for example, rates for a two week term of this kind can reach from three hundred to seven hundred percent. In America, they can run as much as forty percent or more. In some states, such as Ohio, the company is restricted to a flat rate of fifteen dollars per hundred dollars borrowed plus fees. Any notice will offer a strong warning to potential borrowers that once a person has entered into this kind of term, one can enter a deeper and deeper spiral of debt enslavement. Take the possible following story of one borrower.
A single mother works two jobs to provide for her two children and the minimum wage jobs only bring in two hundred and seventy dollars a week after taxes. The woman picked up financial information at her local library and after seeing how much such things would cost, laid the pamphlet aside. However, three weeks after reading the article, her five year old broke his leg while at the neighborhood playground. She was forced to take a week off work to care for him at home and suddenly she is three hundred dollars short when the bills arrive. It suddenly became a choice between feeding the family and paying the bills. Squarely on the horns of a dilemma, the young person goes to a local office and gets a two week extension for three hundred dollars, for which she had to write a check in the amount of four hundred and thirteen dollars due at her next wage.
An honest pamphlet on finances will say that the financial terms can provide some much needed cash if the amount is only a reasonable fraction one one's next wage. If some unexpected emergency arises and fifty or a hundred dollars is needed, this business might be an alternative. But this same pamphlet will also warn of the dangerous trap of debt enslavement that can occur with such a form of high interest short payback practice. Borrowers should be very aware. Exhaust every other possible resource before resorting to this lifestyle.
Christian Payday Advance LendersThese organizations are all over the country both online and in local towns and cities offering quick and easy funds to individuals who have run into an emergency situation and need to have monies happen ten days or twelve days or some other time frame before their actual calendar pay day. These instituations have become extremely popular all over the globe in places where easy credit has driven millions into debt slavery and personal savings are nearly nonexistent. This is true for over seventy percent of Americans who have become so debt impoverished that they live hand to mouth. The crisis in lack of savings has made many people vulnerable to unexpected emergencies that might crop up and so the first impulse is to look to family, friends, churches and perhaps even liquidating some personal property. But if all those have been tried, where does the person go next for help? The answer is to someone who doesn't care about past failures.
The great advantage that these firms have over banks and many others is that they are not interested in someone's past credit failures. They are also not interested in how much debt a person already has and whether or not the person already has been too short of income at times. The employee that stands inside the counter will not cluck their tongue in shame at the person and will not give a sermon to him on how very irresponsible he is for getting into such a situation. Perhaps that is the reason that on this occasion, one heads down to the payday advance lenders at the corner of "I Don't Want to Listen Anymore" and I've Heard It a Million Times Before." The office of this organization is a place of anonymity and no shame and walking out with dough can be a painless ten minute deal.
At the vast majority of funding companies there are only a few questions asked. The first is does the individual have a picture ID authorized by the government and the second have a job right now? If the job has been three months in length, if the person has a checking account, and if they can show a piece of mail addressed to the company from a utility or other similar entity, the granting of the dinero is a done deal. There are no credit checks, there are no investigations into whether they have too many obligations already, and the money will be directly deposited in the a checking account by the morning. You write a post dated personal check for the total amount borrowed plus the interest and fees. The deposit will be cashed by the lender on the day of the next pay stub, up to fourteen days away. So now the clock is ticking.
The major concern that many states have had with these institutions is the very high interest rates on money that is due in a very short amount of time. Within days, the customer must repay back obligations with as much as thirty six percent interest plus some fees. A simple one hundred dollars may cost as much as one hundred and forty dollars to repay. A two hundred dollars might be two hundred and sixty or eighty to repay. For some, that may not be as high as originally thought, but then comes the real issue. Many of these people are not in a position to repay after fourteen days, even if there is a paycheck on that day. If one gets an extension of terms, then the customer must pay penalty costs before the extension is approved and the interest continues to accrue.
Some states allow an annual percentage rate of over eleven hundred percent for their dinero. Figure out the interest on a six hundred dollars that can't be paid back for even six months, let alone a year. Other states have so heavily regulated these institutions that they have fled the state or gone out of business. The heart can go out to people in this predicament of endless debt enslavement. But then the question becomes, where does the Christian go to get emergency money if all the resource roads have dead ends? Do these firms actually provide a needed service?
When Jesus spoke, He wanted to convey to His listeners that God is ready to take care of His children. "Consider the ravens: for they neither sow nor reap; which neither have storehouse nor barn; and God feedeth them; how much more are ye better than the fowls?" (Luke 12:24) Companies should be licensed and regulated by local and state governments so before using them, a person must ask around about their credibility. Check with the Better Business Bureau to see how the loan company handles disputes with customers. Go online and find out the different deals and interest rates these lenders offer and ask if the rate is a new customer one. Make sure that all fees and costs are stated upfront, starting with the first page of a website or on the walls of the company office.