Good news for borrowers: the U.S. Senate has given initial approval to proposed legislation which would make interest rates on payday loans more attractive than ever.
House Bill 1310 would cap rates on cash advances -- as well as limit the transaction fees charged to consumers. The proposed bill also would keep borrowers from extending their loans repeatedly, or taking out multiple loans, both of which make repayment a lot tougher to manage for the consumer.
The bill now goes to the Senate Appropriations Committee for consideration, before returning to the Senate for final approval.
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Wednesday, March 26, 2008
Tuesday, March 25, 2008
WHEN APPLYING FOR CASH, BE SURE TO TAKE DUE DATE INTO ACCOUNT
There are a variety of factors to consider when applying for a payday advance, such as lending fees and APRs. However, don't make the mistake many borrowers do, and ignore the due date.
Most payday lenders offer a two-week repayment term; still, some borrowers are unable to repay the money within that time period. That's not good -- failure to repay by the stated repayment date results in additional service charges plus a higher interest rate going forward.A lot of borrowers suffer the consequences because they're unaware they can contact the lender about extending the repayment period. If you feel you won't be able to pay back your advance within the two-week period, immediately talk to the lending agent: you may be able to buy another week or two without suffering severe penalties.
Related Story
Most payday lenders offer a two-week repayment term; still, some borrowers are unable to repay the money within that time period. That's not good -- failure to repay by the stated repayment date results in additional service charges plus a higher interest rate going forward.A lot of borrowers suffer the consequences because they're unaware they can contact the lender about extending the repayment period. If you feel you won't be able to pay back your advance within the two-week period, immediately talk to the lending agent: you may be able to buy another week or two without suffering severe penalties.
Related Story
Tuesday, March 18, 2008
CHRISTIAN BORROWERS SHOW FAITH IN PAYDAY LOANS
According to Forbes Magazine, areas with large concentrations of Christians are the "Promised Land" for payday lenders.
The magazine's website cited a study that portrayed such areas as the Southern Bible Belt as hotbeds of payday loan lending. The study claimed a "strong correlation between the number of payday lenders within a geographic area and the political power of conservative Christians within a state."
According to SmartMoney, industry analysts estimate that 19 million U.S. households used a payday loan in 2006. This number is sure to grow this year as more Americans look to such advances to address their immediate cash needs.
Another factor: the realization that "regular" bank lending may be restricted as a result of recent trouble in the credit markets.
Related Story
The magazine's website cited a study that portrayed such areas as the Southern Bible Belt as hotbeds of payday loan lending. The study claimed a "strong correlation between the number of payday lenders within a geographic area and the political power of conservative Christians within a state."
According to SmartMoney, industry analysts estimate that 19 million U.S. households used a payday loan in 2006. This number is sure to grow this year as more Americans look to such advances to address their immediate cash needs.
Another factor: the realization that "regular" bank lending may be restricted as a result of recent trouble in the credit markets.
Related Story
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