To survive in the present economical world is very tough for anybody and especially the situation is worse for the people on benefits. People on benefits, are people who are dependant on the benefits provided by the department of social security. This dependence can be due to various reasons such as under employment, physical ailments, some incidences etc. The department fixes an amount for making both the ends meet. Mostly people on monthly social security income are of old age and hence there is high chance of these people getting into financial trouble as they are highly prone to illness that leads to sudden medical expenses. In order to provide help for people on monthly security income, UK financial market has come up with advance loans that provide instant financial help to the people. Advance loan for people on monthly security income is suitably designed to bail them out from their sudden financial crisis. This loan is simple, fast and easy to avail.
The advance loan amount varies from £30 to £1000 and to avail this loan a person must be on monthly security income for at least six months and any saving of £500 and above is considered. The loan amount is financed by the lender without taking any type of security and the repayment period is also decided by the borrower as the money on benefit is the only resource to repay the loan amount. This loan is usually taken to meet emergencies or crisis and mostly it is taken to pay for the medical attentions. Internet has paved the way for people to avail easy and fast loan and people can apply online and easily avail the advance loan facility. This efficiently utilizes one’s time and energy resources. One can easily apply online and there are agencies that provide the services for forwarding loan application to lenders who offer these kinds of loan. One has to look into the lenders offers carefully and then decide carefully about the best lender that will satisfy all his requirements.
Department of social security provides benefit to people who are unable to earn their livelihood due to physical ailment, accidents or due to old age. These people find hard to meet any sudden expenses with the amount provided be the social security department. So in order to meet sudden crisis they also take the help of UK money lenders who provide them with various types of loans such as advance loan.
Showing posts with label Cash loan. Show all posts
Showing posts with label Cash loan. Show all posts
Sunday, October 19, 2008
Sunday, December 23, 2007
Credit counselors warn against Christmas payday loans
With Christmas just three days away, most consumers would love a little extra boost into their cash flow.
Taking out a payday or cash advance loan is not the way to go, warn credit counselors.
Payday advertisements appeal to customers with the promise of no credit checks, said Jeff Telling, Central Illinois regional manager for Family Credit Counseling Service in Normal. Those offers are even more tempting now during the giving time of the year, but consumers will pay for the loan in annual interest rates possibly in excess of 1,800 percent, Telling said.
“I see no positive benefits in it regardless of what the advertising says,” Telling said. “It’s not even a last resort to me. It’s a never.”
Payday loans are marketed as short-term cash advances on the borrower’s next paycheck, but many Americans end up caught in a debt trap, as 90 percent of payday lending revenues are based on repeat borrowers, according to a survey from the North Carolina-based Center for Responsible Lending. The average payday borrower pays back $793 for a $325 loan, which equals a total of $4.2 billion in payday lending fees.
Representatives at a few local cash advance and payday loan businesses declined comment Friday.
David Hill, credit counseling coordinator at Chestnut Credit Counseling Services in Bloomington, recognizes the alternative to not taking out a payday loan sometimes could be financially worse than the high interest-rate loans. Maybe the penalty on a late bill or the repercussions of not fixing your car would cost a consumer more, for example, he said.
At the same time, he knows people in Central Illinois have run into problems with payday loans, particularly if they are not able to repay them in the agreed-upon time frame.
Consumers typically have two weeks to pay back a payday-type loan. If they can’t pay it back in that time, they can roll it over into a new loan.
“The average person will not pay it off in the two-week period,” Telling said. “It rolls over.”
Many times, consumers will write a post-dated check to the payday lender based on the assumption they will repay the loan in two weeks. If they don’t pay back the loan or roll it over, the lender will cash the check, and the consumer could end up with another problem — a bounced check, Telling said.
Simply put, the impact of payday loans generally puts borrowers into an endless cycle of debt, Telling said.
He tells the story of a person who visited him six months ago with no payday loans. The individual, who didn’t follow Telling’s advice to look at his cash flow and live within his means, recently came back with five payday loans. The client thought the loans would be a short-term solution to what’s actually a long-term problem, Telling said.
“You can’t borrow your way out of debt,” Telling said. “They’re supposed to be a quick fix. They’re not. They’re an additional burden on the people because of the exuberant interest rates.”
Consumers need to look ahead with their finances and save money throughout the year, Hill said.
If consumers feel the need to get a payday loan to cover holiday shopping, that’s probably a big sign they have not planned for their expenses, he said.
“Christmas is nothing unexpected. We know it’s coming. We know we’re going to spend some extra money. There’s a lot better ways of preparing for that,” Hill said.
If consumers are thinking about getting a payday loan — or already have one — for any reason, Hill hopes the experience is a wake-up call for them to take a better look at their finances. It’s simply good money management to have money set aside to pay for emergencies and other situations, he said.
Source:http://www.pantagraph.com/articles/2007/12/21/money/doc476c4f60c9e70335661236.txt
Taking out a payday or cash advance loan is not the way to go, warn credit counselors.
Payday advertisements appeal to customers with the promise of no credit checks, said Jeff Telling, Central Illinois regional manager for Family Credit Counseling Service in Normal. Those offers are even more tempting now during the giving time of the year, but consumers will pay for the loan in annual interest rates possibly in excess of 1,800 percent, Telling said.
“I see no positive benefits in it regardless of what the advertising says,” Telling said. “It’s not even a last resort to me. It’s a never.”
Payday loans are marketed as short-term cash advances on the borrower’s next paycheck, but many Americans end up caught in a debt trap, as 90 percent of payday lending revenues are based on repeat borrowers, according to a survey from the North Carolina-based Center for Responsible Lending. The average payday borrower pays back $793 for a $325 loan, which equals a total of $4.2 billion in payday lending fees.
Representatives at a few local cash advance and payday loan businesses declined comment Friday.
David Hill, credit counseling coordinator at Chestnut Credit Counseling Services in Bloomington, recognizes the alternative to not taking out a payday loan sometimes could be financially worse than the high interest-rate loans. Maybe the penalty on a late bill or the repercussions of not fixing your car would cost a consumer more, for example, he said.
At the same time, he knows people in Central Illinois have run into problems with payday loans, particularly if they are not able to repay them in the agreed-upon time frame.
Consumers typically have two weeks to pay back a payday-type loan. If they can’t pay it back in that time, they can roll it over into a new loan.
“The average person will not pay it off in the two-week period,” Telling said. “It rolls over.”
Many times, consumers will write a post-dated check to the payday lender based on the assumption they will repay the loan in two weeks. If they don’t pay back the loan or roll it over, the lender will cash the check, and the consumer could end up with another problem — a bounced check, Telling said.
Simply put, the impact of payday loans generally puts borrowers into an endless cycle of debt, Telling said.
He tells the story of a person who visited him six months ago with no payday loans. The individual, who didn’t follow Telling’s advice to look at his cash flow and live within his means, recently came back with five payday loans. The client thought the loans would be a short-term solution to what’s actually a long-term problem, Telling said.
“You can’t borrow your way out of debt,” Telling said. “They’re supposed to be a quick fix. They’re not. They’re an additional burden on the people because of the exuberant interest rates.”
Consumers need to look ahead with their finances and save money throughout the year, Hill said.
If consumers feel the need to get a payday loan to cover holiday shopping, that’s probably a big sign they have not planned for their expenses, he said.
“Christmas is nothing unexpected. We know it’s coming. We know we’re going to spend some extra money. There’s a lot better ways of preparing for that,” Hill said.
If consumers are thinking about getting a payday loan — or already have one — for any reason, Hill hopes the experience is a wake-up call for them to take a better look at their finances. It’s simply good money management to have money set aside to pay for emergencies and other situations, he said.
Source:http://www.pantagraph.com/articles/2007/12/21/money/doc476c4f60c9e70335661236.txt
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