No Fax Christian Payday Advance
A no fax Christian payday advance is another way of describing the paycheck that stretches across the United States and around the world. Some states in America have so regulated these quick lenders that many companies have folded up and disappeared while many states have allowed the practice to flourish and even more so during difficult economic times. Critics have decried them as predatory, but they do fulfill a certain need which will be discussed in a moment. The companies are quick to answer the critics by reminding them that their customers are fully employed and have proven that they have been for at least several months. While their sister businesses are located in a brick and mortar setting, the no fax payday advance genre of lender is an online lender practicing the same type of service.
An online borrower can submit all needed information for the note on a lender's website while zero other substantiating documents are needed. In past decades and clearly portrayed in old movies, a mother needing money for her children's shoes or a father needing to feed his family would walk down a back street or into a pool hall and there would be the neighborhood loan shark, ready to offer the desperate seeker whatever money they needed but at a very steep cost. Of course the story would unfold about the trials and perils the borrowers would have to go through to gather the cash for the lender back, but often the interest rates had risen over night making the obligation impossible to give back. Bones would be broken, children threatened and fathers would sometimes lose their lives over nonpayment of the contract. Today bones aren't broken and fathers don't lose their lives over payday advances not being repaid, but the high interest fees are still with us.
With the convenience of the Internet and the anonymity of an online application, a customer can get a relief in as little as few hours. In some cases, he can request cash be forwarded very fast such as having the funds deposited one minute after midnight. Many companies have the policy that any request after nine is deposited the second day after the request. So with these online quick obligations, a chap has convenience, anonymity, no credit check and no investigation about total debt to income ratios. All this ease and no financial x-rays can only spell one thing: a very costly fourteen day extention. "Greater love hath no man than this, that a man lay down his life for his friends." (John 15:13)
Whatever one wants to call it, a quick zero qualification note or a pay day check advance or an online paycheck or a no fax payday advance, the lenders target those people who least can afford such a transaction. While seventy percent of Americans are estimated to live beyond their means which translates to no savings, a financial emergency most cruelly lands on those making a credible meager living. Slightly above poverty so that government assistance is not in the picture, a hospital co pay of one hundred dollars can be devastating to those with that income level. No family members with any money, no friends with resources and maybe attending a church with little resources, this demographic turns to the broker down the street or goes to the library and applies for dough over a computer. Tremendous pride to always pay what is owed may drive these individuals to make bad decisions.
Asking for one hundred dollars for fourteen days either online with a no fax payday advance or at a local store will cost fifteen dollars in Ohio and twenty five in Pennsylvania. There is an additional fee of about five dollars for origination costs. The full amount for this debt including the interest and costs will come out either electronically if online or with a personal check at the local store. What if the person cannot pay it? Many states allow the them and the venture to renew it and try again at the next time wages are received but of course with more interest and costs. Many states allow an annual percentage rate (APR) of eleven hundred percent. So if a low income wage earner gets into more financial hot water and has to let that bills go unpaid even for a few weeks or a few months, what will the outcome be?
But the question still begs to be answered: where does this demographic go for help in times of emergency if nobody is around? Especially if they are just above the line for government assistance. The reality is stark for those caught in the fly paper that cannot be repay right away. The very people who have the worst credit and highest debt ratios are those given the easiest credit at the highest prices. The payday cash advance companies wouldn't stay in business if there were a sky high percentage of loan defaults. So the people do pay back the money in the majority of cases. Paying back the fourteen day repayment costs takes away needed groceries and the next wage is another fourteen days away. These people need to make every penny count and stop spending monies that don't have or get a higher paying job.
Online Christian Payday Advance LoansOnline dinero is a way that many people escape emergency financial issues that crop up without warning. Perhaps a furnace motor blows or the brakes go bad on the family van or a child goes to the urgent care and the co pay is one hundred and fifty dollars. Perhaps it is simply the fact that the groceries ran out six days before the next paycheck and the children are looking to the parent for their next meal. Now the reality is that often the cash upfront is like the teenage daughter looking for allowance money five days before it is supposed to be doled out. The dough will be used to buy a new sweater "that's to die for" for the school party. Adults can also abuse the privilege of borrowing by using online services and their available credit for very unwise purposes that may be only fleeting in nature and quite unnecessary.
Cash now is the most convenient way ever for someone to obtain money. No longer does a person have to know someone who knows someone who knows a bone breaker. No longer does a person have to step into a smoky pool hall or a back alley garage to get an exorbitantly high interest situation. Just sit in the comfort of a living room chair and order up anything from one hundred dollar fourteen day cash to as much as fifteen hundred dollars. The limit of how much a person can get is dependent upon the rules and regulations of each separate state government.
The government stepped in during the last few years to regulate the very high interest lending agreements that these companies were charging for just a fourteen day period. Before the days of regulation, a hundred dollar obligation could have cost as much as two hundred dollars to repay in just a two week period. Even yet today in the UK, a contract may have up to a seven hundred percent interest rate for just two weeks! In India the rates can be even higher. But regulation has brought the cost of borrowing against one's wages to a better deal. In a few states, a one hundred dollar online funding can cost fifteen dollars plus about five dollars in fees. Other states allow a charge of twenty five dollars.
But one of the realities of such usury practices is the fact that many of the people who can least afford the high costs are the persons most likely to use them. Some financial experts warn that seventy percent of Americans live with almost no extra cushion. This staggering amount of people is devoid of any savings thanks to debt to income ratios much higher than forty percent. As a result, when a furnace motor does blow up and the credit cards are maxed out, fast dinero is a tempting source of quick cash. However, the dark reality is that these types of contracts can absolutely engulf the person who has no protection against another emergency happening the next day or the next week.
Consider that in some states where a borrower may indeed use funding to pay for a six hundred dollar furnace motor, in fourteen days almost eight hundred dollars will be taken out of the borrower's checking account where the nine hundred dollar paycheck has just been deposited. That leaves just one hundred dollars on which to operate a household income for the next two weeks, and there are more bills arriving. Just for illustration purposes, assume that he defaults on the money upfront by pulling it out of the checking account before the company cashes his personal check for the eight hundred dollars. The borrower buys groceries and makes payments on bills instead. In many states where extensions are permitted, the individual will agree to pay all the interest and fees on the original fourteen day loan (two hundred dollars) but getting the extension means agreeing to more of the same interest piled on top of the obligation, which if extended again could be four hundred dollars plus the six hundred principle.
In some states, unpaid six hundred dollar debts would be subject to an over eleven hundred percent interest annualized rate. Typically Christians who use the services of the are those already mired with low credit scores and high debt to income ratios. And those credit history numbers are never explored upfront with lenders. Instead, the most important things are the recent employment history, the identifying of a working checking account, sometimes the presentation of a utility bill with the borrowers name and given address clearly states and how often he gets paid. Is it weekly, bi-weekly or monthly?
Solomon, billed as the wisest human to ever live once said, "The rich ruleth over the poor and the borrower is servant to the lender." (Proverbs 22:7) Certainly Americans are servants to the banks and loan companies with trillions of dollars in debt. Financial experts warn strongly against being a dead beat. But if a person does so, make sure the lender is licensed and is a member of some organization or fraternity that promotes wise borrowing.