Cash Advance Loans: PEW Study Sheds Light on Borrowers' Choices

Another PEW study has found some interesting data on how fast cash advance loans are chosen and paid. PEW's Payday Lending in America series once again has studied the behaviors of short-term loan borrowers in order bring more light in how the industry affects the average person.
Most direct lenders would tell you that a person who applies for one of their direct cash advance loans is having financial troubles. It's an obvious answer, why else would someone be willing to pay the fees behind the loan? What the PEW study found was a more in depth answer. They calculated that 58% of the fast cash users were not just experiencing temporary emergencies but rather troubles keeping up with monthly expenses. This finding supports PEW's first report which touched upon how users would rather take out a short-term loan rather than have to work at cutting back on their lifestyle.
In order to redirect these findings, borrowers will need to work on their budgets and cutting back on monthly expenses. This could mean trading in a luxury car for something more affordable, downsizing their home or cutting out household luxuries like internet, cable and movie channels. The more money they can keep in their bank accounts the less chance they will need to use a short-term loan.
Cutbacks will also help correct PEW's second finding that only 14% of those borrowers studied can actually afford to pay the loan back in full. It is tough to repay a loan plus fees out of one paycheck. The remaining 76% need to be creative to find the extra money without leaving their budget unguarded. Some may have a family member or friend who could help while others may have to sell off household items.
The PEW study also touched upon the mindset of a person seeking out direct cash lenders. The majority of borrowers rely on the lenders to give them accurate information about the loans. If a borrower ends up choosing a lender who does not use best practices, there may be hidden costs which will create additional hardships. It takes many of these borrowers up to 5 months to pay off the loan. The $375 loan ends up costing more than $500 to repay.
Desperation is often a cause for someone to obtain a cash advance loan online. The study showed that 37% of the borrowers were so desperate for money that it didn't matter what the terms and conditions of the loan were. They would take the money no matter how expensive it was. Stressed financial situations create the potential for poor decisions with short-term loans as one of the options.
It is very important to set up a system for your money when things do go bad. Creditors step out of the playing field when bad credit history plagues a person. There are a few other choices for alternative money solutions, but who is to say which one is better than another? Preventative measures continue to be the best way to safeguard money problems. Unexpected financial situations will influence a person's bank account. How a bank account is able to persevere under tough times will directly affect future finances.
The average person will need to safeguard their finances by creating their own emergency fund and cutting back on expenses so their monthly budget sits comfortably in the realm of their monthly income. It does take education for borrowers to fully understand a short-term loan. You can try to prevent a borrower from using cash advance online loans, but if the person has no other option to get money help they will find their way back to the application page the majority of the time.

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Auto-Charge Loans Or Payday Loans - Use Them to Preserve Your Credit Ratin

Direct debit loans or payday loans are a useful resource for obtaining small-scale short-term credit. However few people are well-acquainted with this type of credit even today. There is an ever-increasing number of auto-charge loan companies that are making their services available through the web. When you apply for payday loans, your application will be fully processed via the internet in just a few days, and this is without having to fax supporting documents required for loans given by other lending institutions with longer terms. Check advance loan processing is very handy for folks who have to have money urgently since the loan is credited by the payday loan company to the individual's bank account almost immediately. Consumers also need another course of action in conditions where their credit cards or long-term lending options are not suitable or certainly not cost-effective for the purposes for which they are getting a loan. And so, a payday cash advance is a fast solution for folks that have no other means of obtaining the funds which they need to have right away, for instance those individuals whose credit cards have been maxed out and they have no family members or close friends with extra money to lend for a short time. But it's immensely important for folks to be sure before they apply for auto debit loans that they are capable of completely paying the loan when they get their salary.
How Does A Payday Loan or Auto Debit Loan Work?
It's easy to understand how payday loan or auto charge loan businesses operates. In exchange for a small amount of money that will be quickly transferred to your account by the payday lender, the consumer must agree to have his or her account automatically debited for the loan amount and fee on the next day of his payday. Payday lending lenders mostly get the money to loan their customers from financial institutions or affiliate banks and other partner-lenders. And because of the automatic debit agreement or postdated check they submitted to the auto loan company, no more credit checks are necessary for the issuance of the cash. Hence, with this arrangement, risk to the lender is minimized.
Benefits of Payday Loans
It is important to understand the proper use of payday loans or auto charge loans that can benefit the consumer. These are helpful when used only as a short term loan or paid within 2 weeks or 1 month. They allow you to meet your financial obligations when cash is not around and your credit cards are not being accepted. For short-term loans that you know you can afford to pay when your next paycheck comes and you do not foresee having to extend your payday loan to another month or longer, There are many quick and effective solution to your temporary fund shortage. Payday loans are very different from credit card cash advance wherein you would have to meet the burden of high interest rates for a longer period and ridiculously high fees which makes it suitable as a final option. There are also payday loans which do not charge processing fees and other fees that a credit card issuer charges. And since these loans are paid off at one time with your next paycheck, you will not incur high interest fees on that loan compared to credit card cash advance loans which can be left unpaid and costing you more and more interest for many months since there are other debts in your card which you need to pay first.
Avoiding Bad Debt with Auto Debit Loans or Payday Loans
Our credit card dues can grow quite rapidly from penalties and fees added to our outstanding balance for missing a few payments or delaying payment. Paying off your minimum credit card monthly bill, during times you don't have any funds and no access to free-interest rate loans from friends/relatives is a good time to apply for payday loans. It will help save your credit score and prevent rates and penalty charges ballooning in your credit card account. Compared to other types of short-term loans, payday loans are very convenient and can be obtained almost instantaneously. Moreover, your company may have more restrictions in place for approving and issuing a paycheck advance, such as being in the company for more than a month. Hence, direct debit loans serve a critical niche in the market for providing fast loan processing and release of money. And for situations when you suddenly find yourself short of cash to meet your credit card payments and bills, these loans can help you avoid those costly finance charges.
Keep in mind that a record of any late credit card payment will be in record for five years in your credit profile. Hence, you'll be paying the cost of that late payment for 5 years, rather than just having it resolved in just a month if you decided to save your credit with a cash payday loan. Moreover, once it is recorded, the only way for you to have it deleted is to wait for it to expire. Therefore, getting payday cash loans is one of the most beneficial tools which you may use to keep your credit history clean of any derogatory information and to keep you financially steady.

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Checking Out a Merchant Cash Advance Provider

A Merchant Cash advance is a scarcely used financial practice that provides needed funding to merchants via their credit card processor. Few business owners realize that they have this option and go directly to family or a bank when they need cash to pay for expansions, repairs or upgrades of their stock and equipment. If you are a business in need of money fast, you should look into factoring as well.
The idea behind factoring is a bit like selling futures. You, as the merchant, agree to sell future credit card revenues at a discount to the factoring company. The funds is provided now in exchange for future revenues in the next several months.
These agreements are usually for the near term, rarely more than 1 year, and are a great way for a company with a proven credit card sales track record to attain needed funding.
Unlike a traditional loan, in which the repayment schedule is set for the life of the loan, a factoring arrangement takes into consideration the fact that in almost every business there are busy months and bad ones. Your payment is directly tied to your credit card receivables, as a portion, not a set fee.
If you have agreed to pay a 10% daily capture and you charge $8,000 one month, your payment that month comes out to $800. In the next month you may receive 10,000 dollars and pay $1,000. This flexibility is a very useful option for a growing company.
Another benefit of a merchant cash advance is the quickness,short time in which the working capital turns up in your possession. While a bank may take several weeks of decision making and tell you how you utilize the working capital when and if they give it to you, with a factoring agreement, you will have the money in about a few working days, and you can apply it to whatever you deem fit.

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Cash Advance Loan In Illinois - Some Basic Facts

Getting money fast becomes a possibility with Illinois cash advance payday loan. It is true that companies offering fast cash loan can offer money to you in a day's time. When you fall short of a few hundred dollars to meet the month's expenses, you need some quick money. Companies offering this can come to your rescue and provide you with that required amount with minimum formalities and no hassles. These loans are generally secured with a personal check or your bank account may be asked for to withdraw the money automatically on the date agreed upon.
Look At The Costs Too
It seems too good to be true! It is true but there is something that you need to watch out for. These loans are pretty expensive and this convenience which is widely advertised has a hefty price tag attached to it. Some people might wonder, why is the lending company making things so easy for the borrower?
The answer is simple, in case of Illinois cash advance payday loan, the lending company is earning a huge profit by lending a small amount of money for just a few weeks. For example, the fee is mostly around $15-$30 for every $100 borrowed for 14 days. If the borrower is unable to pay back on time, the fee mounts on and these companies profit even more.
The lenders and their agents make you believe that as a borrower, you are not losing much. You receive money so fast and easily that you can have peace of mind as you may avoid all late payment fees, check bouncing fees, etc. Even with a bad credit record and very less money in your bank account, you can get cash advance in Illinois. This is the reason, the business of payday loan is booming in Illinois and other parts of the US.
The lenders justify high APR considering the fact that there are no credit checks and no waiting. Lenders say that high-risk lending entail a higher fee. True Indeed! Now it is for you to decide whether you need such high cost loan. If you are faced with an emergency and no source of funds available, you can think about it, but if you are planning to take money using this service for trivial issues, please don't! These loans are very expensive and in the long run they could create a larger financial mess for you.
Application Process
You need be in Illinois to avail the services of Illinois cash advance payday loan. You can use the internet to apply online for these loans from anywhere in US. You just need to fulfill the minimum criteria set by the lender, which is very simple and all salaried people qualify for it most certainly.
You have to fill-up an online form, which asks for details of your employment and salary. They verify these data online and through phone. Then, within hours of applying for it, you receive the approval. The money is deposited in your bank account directly on the next working day. The whole procedure generally takes 24 hours or so.
In times of real emergencies and to build a good credit history, this is a worthwhile option for receiving fast cash. If used only for urgent expenses, it is worth the cost. However, if you can manage without it, nothing like it!

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Payday Loan Lender: Limit Your Use To Make Payments More Affordable

Applying for payday loans to help with budget failures can often lead to overuse. It is never good practice for a borrower to owe money to several payday loan lenders all at the same time. Between the finance charges and the balances due for each of the loans, your next few paychecks will carry a heavy burden.
Credit challenged applicants need to understand that there is a clear difference between owing money to creditors and short-term lenders. A direct lender is not in the revolving account business and unless you deal with a lender who processes installment payday loans, your payment is expected in full including fees by the time you get your next paycheck. With every other household bill and payments to every creditor how much money will you have left? Too often credit challenged folks turn to the short-term loan lenders for food and gas money or to recoup from paying another safe payday loan off. This is a tough cycle to get out of. You have to make on-time payments, so how do you ever get out from under the carpet of debt? One thing for certain is that you cannot get out of debt while still making debt. You have to take a stand against using any more credit cards or fast cash loans to make ends meet.
Minimum payments will not get rid of debt any time soon. All it will do is continue to drain your bank account while you dish out finance charges with every payment. It is important to focus on the one loan that costs the most and knock it out of your budget portfolio. It makes the most sense to get rid of high interest rate debt first. This will often point to paying payday loan lenders in storefronts or online first. You may have creditors that charge similar or possibly higher rates, but the short terms on a payday loan make finance charges happen more often. Minimum payments break the bank one small payment at a time. You can't blame financial woes only on the debt.
Creditors will send you a bank statement. Do you open it or place it on the desk to take care of another day? Do you answer the calls from a direct lender? Chances are that they may call you to remind you of your upcoming due date. Unless you have not paid the bill, you don't have anything to avoid. If you have missed the due date or your payment was returned insufficient funds, it is good to accept their call or read any communications they send. It is always best to make arrangements with the company directly. The last thing you want is debt in default. There will come a point that a borrower's debt will get sold off to collections. You know those companies that call and send countless emails and letters trying to collect on your debt. Collections agencies are no fun to deal with never mind the damage default debt will do to your credit report. When you get a call from your creditor or direct payday loan lender accept it and work something out. It is much better for you in the long run.
Don't use third party money for the wrong reasons. Extending your purchasing power is not a good enough reason to add debt to you plate. Make sure to leave these options for those emergency moments when unplanned expenses interfere with your budgeted plan. Multiple payments end up not being as convenient as spending the cash in the first place. Think it through and make the smart decision for your budget.

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Auto Insurance Terms You Should Know

In order to be successful and proficient in all business it is very important that one familiarize himself with the terms of that particular field of interest or business he intend establishing. That is why knowing such terms will undoubtedly build you basic knowledge of your field of interest and eventually lead to you success in it.
Take a moment to review some of the terms associated with auto insurance and quotes before going into it as this will be very much helpful to you in your auto insurance policy success.
Adjuster
Also known as claim adjuster, this is an insurance company worker who is primarily responsible for investigating and settling all claims brought by claimants or insurance carriers resulting from a specific casualty. His responsibilities also include the evaluation and payment of the available or each claim to the policyholder.
Payment of claims is usually carried out only after all proceedings are verified. The claim may as well depend on the active insurance or coverage policy available of the item.
Accident
This is an unplanned, unforeseen or unintended event beyond the control of an insured, resulting in the loss of property e.g. car. The incurred loss can be compensated as a claim to the claimant by the carrier. The claim is based on what is observed and the actual cash value of the car or items involved.
Auto insurance companies try in the best of their abilities to supply sustainable, efficient, quality, and affordable policy coverage to their policyholders. They also aim at increasing the savings of their insured to meet specific needs e.g. building a big collection of policyholders.
Actuary
This is a specialist who computes premiums and risks of insurance. They are duly involved in the calculation of loss reserving, life expectancy and determining accident frequency. They serve as one of the key ingredients in an insurance company.
They also primarily help in making profit and financial stability of carriers (insurance companies) which they serve and involved in trends assessment as well as determining insurance prices.
These specialists also have a share in managing the carrier's expenditure and the giving of claims to claimant on any needed basis. They help in ensuring that neither the carrier nor the insured suffer unnecessary loss.
Accident Frequency
This refers to the number of times there occur an accident. The frequency is calculated during the time of the insurance policy. The actuary normally computes the frequency of accidents to help determine possible losses.
It should be noted that the phrase may not actually mean the number of times or frequency an accident really does occur but the number of times an accident may occur due to the prediction of the actuary. Premiums can also be accurately and appropriately paid using this principle.
Appraisal
It is a formally written document of the estimation of the value of property of the insured. This is done as against any future casualty resulting in the loss of property.
When an appraisal is eventually damaged, it can be completed or replaced by the adjuster of the insurance company or sometimes a vehicle repair expert.
Additional Insured
It is an individual or organization who also has an auto insurance protection under the primary name insured auto policy. The protection may be extended form an auto leasing company to an individual who lends a car (s) to the primary insured.
In the event of an accident, damage or collision, the leasing person or company has protection against the specific casualty caused by the name insured.
Agent
He is a licensed insurance representative who sells insurance for an insurance company, negotiating and/or effecting insurance contracts. He serves as the middle man in providing quality insurance service to the policyholder.
Insurance agents usually carry out their work on a commission basis and in most cases they are non-exclusive or perhaps exclusive agents.
Agreed Price
This is the cost of repairs of damage to property as agreed upon by the adjuster and the corresponding representative of the body shop. Whenever an incurred loss occurs resulting in an accident to a car, the cost of repair agreed on will be used as a claim to the claimant.
The cost neither increase nor decrease as the price for any resulting damage for the car has already been agreed upon.
Agreed Value
This is the value of the vehicle agreed on by the insured and the insurer which will be paid out on the event of an accident or any other form of unforeseen damage.
It is a policy available mainly for custom vehicles or collectible which actual value remains the same over time without depreciating.
Assigned Risk Plan
Auto insurance plan managed by the state and mostly for individuals and car owners who cannot afford to obtain or qualify for auto insurance or conventional liability coverage due to financial insufficiency or poor insurance record.
They may be placed in residual market in order to get an insurance policy with carriers or insurer but for a higher price. Their coverage is through the state.
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We commit ourselves to providing you with high quality information and reviews about auto insurance and quotes to fulfil your needs and make you get the best auto insurance policy for that car of yours.
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Auto Insurance Does Not Mean The Same Things To People In The Financial Profession

It is amazing how much literature has been written about the car insurance business online. The main approach in use by the bulk of the writings is in the direction of selling car insurance, rather than offer it in the proper context of insurance product or 'a product to protect your assets and wealth.' That is why when searching for the phrase 'auto insurance' a large number of websites emerge with the 'selling' phrases like affordable auto insurance, or cheap auto insurance or low cost auto insurance.
In the early part of 2011 and according to Google AdWords there were 8,100; 74,000; 9,900 monthly searches for the above key phrases, respectively. On the other hand, there were only 110 searches for the phrase 'reliable auto insurance', 170 searches for 'quality auto insurance', and 8,100 for 'top auto insurance companies.' It is rather easy to conclude that most of the searches on line are about price, not quality of insurance.
A basic principle in marketing is to understand what people 'want' and design and package your product or service to meet what the folks want. Looking at those numbers we can tell that most people want cheap auto insurance. As a marketer, if you design any campaign without considering that analysis you may eventually flunk the marketing tests, close your website and go do something else.
So what's the difference between auto insurance polices? From a 'financial planning viewpoint' car insurance comparison should never be based on price only, and perhaps most people agree that cheap insurance is not necessarily the best car insurance. But what most people do not know is that an insurance policy with the best rated company may also be one of the most problematic contract. An auto insurance policy should be compared in reference with three factors:
1. Price: of course the cheaper the better.
2. Company Rating: Non standard companies are more flexible than their standard or preferred counterparts with regard to past violations found on the MVR activities of the drivers and the credit score of the car insurance applicants. However, non standard companies are harsher than others in customer service and paying claims. Most of complains come from non standard insurance companies. While preferred companies do not hesitate to quickly pay for smaller claims suck as seven or eight thousand dollars claim, or even little more; all companies from top to bottom will try to examine the application to see if they have to or do not have to pay a $100,000 claim.
3. Liability Limits. This is the most ignored, least understood, but is the most important aspect of the policy which affect customers during time they need the insurance. It measures how much protection you have in the event you get sued. A professional financial advisor will never ever sell you an auto insurance policy at low limits if he/she has enough information that you and your spouse have enough wealth to be sued for in the event that you or a family household member cause a major auto accident and your car insurance pays the maximum on the policy which turns out not to be enough.
There are many insurance policies sold with superior insurance companies at the lowest liability limits mandated by the state. In the State of Illinois these limits are 20/40/15, which means that in the event you cause an accident that is your fault and you get sued by others, then your company will pay to others on your behalf no more than $20,000 for bodily injury for one person, no more than $40,000 for bodily injury for all other people in the accident, and a maximum of $15,000 for any and all property damage you case in that accident. If you are a business owner and you cause a major accident resulting in a unbeaten lawsuit of $300,000 and your insurance company maxed the payment on the policy and paid $20,000, the difference of $280,000 will have to come from your own money!
Financial Planners and Auto Insurance Marketers Are Not in Harmony
Financial planners are not in harmony with insurance marketers about the weight that needs to be placed on limits of liability in auto insurance. Marketers like to stress the aspects of price and company rating, while financial planners like to stress the importance of liability limits first, then company rating second, and perhaps price at a later stage.
Although financial planners and auto insurance marketers have the common goals of maximizing their earnings while providing their services, the scope of their operations is different. Auto insurance marketers make their money by selling as many polices as they can have. The marketer does his best to make as many sales as possible, hence making small amount of money on too many policies sold. Financial planners work differently as they try to make big money from each of the few number of customers they have. Selling an auto policy is not the primary concern of a financial planner, but for him or her auto insurance is one of the fundamental subjects of the financial planning process.
Car insurance agents look at auto insurance as a way to protect the car itself in the event of theft, fire or another loss, besides the fact that it's the law. Financial planners look at auto insurance as an integral part of their clients risk management process. To the financial planner an auto policy is not to repair the car in the event of loss, but is mainly about protecting the assets and wealth of the insured, especially against potential lawsuits.
Some auto insurance marketers would even suggest to cut down on liability insurance as a way to save money. No sound financial planner will ever make such a suggestion. No way!
When does height matter?
How high your liability limits should be is the main issue that should prevail when you buy car insurance. You probably need only the minimum liability limits mandated by the states if /when(1) you shopped for higher limits and could not afford it, (2) your current assets or wealth is not big enough to expose you to further lawsuits in the event of at fault auto accident. (3) you are a high risk driver where no one else wants to insure you except at the minimum limits. But, if you have certain amounts of assets and wealth, or is expected to have sizable assets or wealth, then you need to worry about the height of your liability limits.
What about if you are not wealthy with plenty of assets? Even for people with little or no wealth, the height of liability limits should be much of a concern to them. This is due to the fact that liability insurance contains certain coverages to pay for your bodily injuries in the event that you get hit by a vehicle that is legally uninsured, or is insured but the insurance on that vehicle was not enough to cover your bodily injuries. According to the Insurance Research Council, approximately 15% to 17% all drivers in the United States are uninsured. Coverages for Uninsured Motorist (UM) and Underinsured Motorist (UIM) vary from states to states with regard to their mandatory status and limit amounts. In Illinois UM is mandatory at the limits of $20,000 for bodily injury per person and $40,000 for bodily injury per accident. Underinsured motorists coverage is not mandatory in Illinois but insurance companies must offer it to clients for policies issued with liability over the state limits. Clients can still reject to have higher uninsured/ underinsured motorists but it must be in writing. As you can see, your liability only policy provides coverage for your bodily injuries, and making sure that you have high limits on both liability, UM and UIM can have tremendous effect on your life.

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