These sorts of loans are for individuals who do not have a credit card, don’t have relatives to lend them money, and cannot ask for advance from their employer. These loans give you quick cash but the interest rates can be from 400 to 700%. So if you take a loan of $100 for a 2 weeks period you can end up paying $115. And unlike the normal creditor, these lenders could threat you and even send you to jail if you do not return their money on time. So you should be very careful while taking a payday loan as you might end up in a bad situation if you don’t pay.
Another type of payday loan to make it even simpler:
Payday loans are life savers as you may know they provide you the extra money you need and you can easily pay them of when you get your next pay check, but what is a no fax payday loan? In case of a no fax payday loan you no longer need to fax your details to the loan company they will find out all about your job and pay checks by other channels. But the process is a lot slower as the lender has to wait for all the info about you. You can make the process faster by giving the correct information about your employer his phone no. and your bank details it saves you the time of faxing all documents. The lender check if you are employed for a minimum of 3 months and you have a regular pay check account or not once these are verified the loan is sanctioned and put to your account. If you don’t pay on time they directly take money from your account. If you have already applied for such a payday loan it can be a lot easier to take a new one. You can also get a zero interest rate offer on your first loan.
Can you get approved for a payday loan?
Though this loan charges tons of interest at the time of need this can be a saver but there are a couple of requirements
For a payday loan:
- you should have a bank account as the amount is directly deducted from your account at the decided time, if you don’t have one
- You do not qualify.
- you monthly income should be more than $800, as the lender needs security you will repay,
- Self-employed people have difficulty in taking a payday loan as they don’t receive the check of same amount every month, they will have to produce bank statements to show their income. If you are not a part of above three and you have a bad credit you can still apply for a payday loan.
If you are lagging on your loan payments here are some options you can avail
Wage garnishment is a method to make a person pay taxes or for loan, it can be voluntary or imposed by the tax department or lender. In this case 25% of employees weekly disposable earnings. Disposable earnings is calculated by removing pension plan , medical insurance and other required insurance whatever is left of the pay after these deduction is called disposable pay, that is used pay the debts or taxes but it cannot be more than 25% of a person’s disposable pay. There are certain rules set as well by CCPA which the employers have to follow when charging garnishment. Also a person can voluntary ask of garnishment if they don’t want to miss there loan payments. Garnishment can be imposed or a choice made by you.
Accelerated debt consolidation
In today’s date all of us have debts, but if your debts are becoming unbearable then it’s high time you apply for debt consolidation. The debt consolidation pays of all your loans that are pending and you make a lot lesser payment on a regular basis. So if you are under heaps of debt better apply for a debt consolidation soon. There are two types of loans secured and unsecured; a secured loan is taken against collateral. An accelerated debt consolidation deals with only unsecured loans like you credit card debts. That can reduce a lot of weight from your shoulders as these debts are lesser in amount and have large interest rates, secured loan the other hand help you improve your credit rating by making regular payments. So the company first divides your loans into secured and unsecured then decides the debts to be consolidated.
Refinancing is also an option:
At times due to financial crisis we may miss a couple of are home loan payments, but the question here arises how we deal with these default payments. There are several methods like paying by credit card which will appear in your credit card bill later, you can also apply for another consumer loan. But all of these debts will end up costing more than the original rate of interest of the house ,the question arises is there another easy way, yes there is by using bad credit refinancing it will cost you more than your actual loan repayment but it will be lot lesser than the other sources you have in option. There are a couple of things you should keep in mind while taking a bad credit refinancing loan like you should check the amount of money you will be paying as at times few companies may pay make you pay higher than required amount, so you will have to go through several companies, also you should try to improve your credibility by repaying extra amount every month. You should also make sure you will not be selling the house for three years from the time you have taken the bad financing loan. Also while signing up for a bad credit refinancing for your home you should go through all the terms and conditions properly or in future you might end up in a crisis.