Payday Lenders begin to turn the Tide against Proposed CFPB Regulations

Payday lenders have been living with the pressure of a very real threat to their industry for some time now. The threat is the new regulations that the CFPB has cooked up for the industry. In the mainstream media and in some court hearings, the payday lenders have taken quite a beating from the CFPB so far. It looks, however, like the lenders have finally had it, and they have started to take action to push back against the CFPB and its proposed payday lending industry regulations.

Jennifer Sons is from Chino Valley Arizona and she is also a payday loan customer. She wrote a note that got delivered to D.C. via a Cincinnati group called Axcess Financial. Part of that note read, “These loans are life savers!! Do not change anything please!”

Another payday loan customer, Kathy Walsh of Shellsburg, Iowa wrote, “If I did not have the advantage of a payday loan, I wouldn’t be able to pay for things like my medicine when I run out, especially since I get paid twice a month!”

There have been so many personal notes and comments posted online that the federal government’s website, Regulations.gov, has them all listed under a section of the site called “What’s trending.” At last count, there were more than 22,500 comments and a minimum of 830 handwritten notes that were sent through via Axcess. This group runs the Check ‘n Go and Allied Cash Advance Locations. An additional 800 comments were posted by customers of Advance Financial in Nashville. Some of these notes had straight-to-the-point text, like “I have bills to pay,” and “Leave me alone!”

The correspondence was recently reviewed and it was determined that the letters were from consumers who were concerned about their access to lines of credit going away. Those types of letters and comments far outweighed the comments from critics of the payday loan industry. The critics, mostly consumer watchdog/advocate groups, believe that the lenders are leading consumers down the wrong path and they say that credit for working class people will not go away. They claim that new financial products will offer people the chance to borrow money with more affordable fees.

Providers in the payday lending industry, however, say that the rule will force legitimate lenders to close down their companies. They also say that the rule will prevent lower income consumers from having access to emergency cash and lines of credit. In this battle the lenders have found that the borrowers are their most powerful weapon.

Cullen Earnest is the VP of public policy for Advance Financial. He said, “This is just the tip of the iceberg!” The last day that the CFPB will accept public comments on the rule is October 7th. Earnest warns that there will be many more consumer letters and comments before that day arrives.

As things now stand in most states, payday lending companies can make shorter term, smaller dollar loans to just about any person who has a job. If borrowers are unable to pay back their loans on time, they can roll the loan over into a new one. Opponents of payday lending say that this process creates cycles of debt for poor people. They hope that the new rules will put an end to the creation of these cycles. It is important to know, however, that most people who take out payday loans do so with understanding of the fees and the loan terms. They also usually pay back their loans on time. Those who roll loans over often do so willingly, and fully understanding that it will take them additional time to pay the loans back. This is no different than if someone chooses to skip a credit card payment; except that the CFPB would rather target the payday lending industry with stiff regulations than it would larger providers of financial services, like big banks and credit card companies.

Is Chase Slate the Best Balance Transfer Credit Card?

It is a veritable jungle out there for people who are looking for credit cards to use for low balance transfers. As you may already know when you are carrying around a high credit card balance, on a line of credit with high interest rates and other fees, it can be almost impossible to pay those hefty balances off. Transferring your high balance to a card with lower interest rates fees can be a great way to get started on your master plan to becoming free from the chains of too much consumer debt. It is important to choose the right credit card to use for your balance transfer, though.

The Chase Slate has become one of the most popular balance transfer credit cards on the market today. But just because the Slate is popular, that doesn’t necessarily mean that it is the right card for you. We decided to investigate what this card has to offer and now we are going to share our findings with you.

What’s Good about the Chase Slate?

Many credit card companies try to entice you to choose their balance transfer cards by offering you 0 percent interest for a short amount of time. The Chase Slate, however, actually offer people 0 percent interest for 15 months. To make things even better, that longer 0 percent term applies to both purchases and balance transfers. It’s a sure bet that the longer no-interest period that the Chase Slate offers is one of its chief selling points.

Chase Slate also allows consumers to transfer their balances without paying any balance transfer fees. This is a very big benefit, as many credit card companies will actually charge you about 3 percent to move your balances to their credit cards. A 3 percent fee on a $5,000 balance would cost you around $150 if you were to choose one of those cards. Slate charges you absolutely nothing, so you don’t have to tack on any addition debt just for the privilege of switching to a card with more affordable interest rates.

Any Drawbacks to the Chase Slate?

There is no such thing as a perfect credit card. As much as we like the Chase Slate, it is important to let you know that it is a balance transfer credit card that is typically only available to people who have good credit scores. Typically, a good credit score is considered to be one that is higher than 660. People who have lower credit scores may feel like they are missing the boat by not being able to qualify for this particular credit card. However, if you have only had a few minor credit problems, say you missed a payment or two, you should still be able to qualify for a Chase Slate credit card.

People who travel frequently are sure to appreciate that Slate also offers Chip and Pin technology. When a card is Chip-enabled, you can safely use it abroad without any worries. So if you plan on taking a vacation or business trip to another country in the future, you may find that the Slate is the ideal credit card to use while you are traveling.

Be sure to use your balance transfer wisely, regardless of the actual credit card that you apply for. Don’t simply rack up more debt. Use the 0 percent introductory period to pay off as much of your debt as you can. That is the whole point of using a balance transfer, and it will definitely help you to get your finances into better shape for the foreseeable future.

Is there a Bright Side to Having Bad Credit?

It doesn’t take a genius to understand how much of an impact bad credit can have on your life. There are so many downsides to bad credit, that entire libraries could be filled with all of the reports that have been written on the topic so far. You pay more money in interest payments, rentals become more challenging and you can even lose out on the opportunity to get a new job, all because your credit score is low. There’s no other way to put it, except to say that bad credit really is a drag…

There are already enough articles out there that tell of the negative impact of bad credit. It is time to change things up a bit, and see if there is anything positive about having a low credit score. Is there a bright side to having bad credit? Let’s see if we can’t find the silver lining for those of you out there dealing with bad credit…

Maintaining Your Perspective with Bad Credit

The first thing you have to keep in mind is that bad credit is not a life sentence; you are not stuck with a low credit score forever. Your score is not any indication of the type of person, but of your past financial decisions. Use this time to review some of the financial mistakes of the past, and come up with resolutions to avoid those mistakes in the future. Not every financial mistake was your fault. Chances are you have dealt with some real financial emergencies in the past. The main thing to remember is to avoid beating yourself up. Get some perspective. Leave the past in the past. And develop a smart plan to move forward, and to rebuild your credit score.

A Time to Learn about Credit

Once you are on the lower end of the credit score spectrum, it is time to start learning some lessons. A lot of people wind up in trouble because they never really learned about how credit scoring works in the first place. Now that you are dealing with bad credit, it is the ideal time to educate yourself. The more you know about the inner workings of credit, the better armed you will be to protect your credit score in the future. Keep this in mind to avoid feeling down and out about your current credit score situation.

Bad Credit can teach you to Overcome Obstacles

Think of bad credit as an obstacle that you can – and will – overcome. Many people do not realize how resourceful they really are until they are facing some type of adversity. Think of rebuilding your credit as a challenge that you are going to tackle with all of your might. Resolve to not let your current situation define you for good. Muster up your courage, get informed and use your low credit score to inspire you to do better with your finances moving forward.

In Conclusion

Chances are that if your credit score is low right now, that you will do all that you can to keep it from getting worse. The old saying of “Once bitten, twice shy” certainly applies to this type of situation. You now understand just how much of a pain bad credit can be, so you are less likely to fall into the same patterns that got you into financial trouble from here on out.

It can be hard to see the positive things in life when your credit score is bad. You ultimately decide how you are going to react to things in life, so make sure that you react the right way to your current financial situation. You can improve your credit score, so try to see the bright side and take strides toward an even brighter financial future.

The Right Time To Take Out A Loan

The idea of taking out a payday loan in order to pay for holiday gifts is never a good idea. Because you never want to make a habit out of taking out a payday loan, you should leave that option for after the holidays when you may really need it. While taking out a payday loan in order to get a small advance to pay bills on time is a smart idea, using that amount of money to buy gifts is not, if only because you view it as “free money”.

 

Loans are never free money, and while a payday loan may be one of the smartest loans that you can take out, it is not for gifts or holiday spending, it should be saved for when you really need it.

When you are dealing with the financial Holiday woe’s in January and February, you want to save a payday loan for a situation where you may not be able to pay a bill on time. Instead of taking the late payment penalty, taking out the loan may save you money, especially considering that you know that you will have the money to pay it off when your next paycheck comes in. While it may take a couple of months to get your finances back in order, when you take out a payday loan in December just to buy more gifts, you run the risk of making the situation worse in the months after the holidays, causing you to go further into debt.

5 Steps to follow when you consolidate payday loan

Do you need cash? If yes, then are you aware about the payday loans? A payday loan is actually a short term loan that enables you to get money instantly during emergencies. If you have taken out several payday loans at a time, then you will find it difficult to manage each of them. You may consolidate your payday loans to make a single monthly payment. The greatest advantage of this loan is you can get it even if you have a bad credit score. Actually, the lender will not check your score before giving you the loan. However, the drawback of payday loan is that you are charged high interest rate on it. As such, you should think twice before you decide to obtain this loan. Payday loans are also known as cash advance loans.

5 Steps to consolidate payday loanconsultation_bad_debt_management

Check out the 5 steps how payday loan consolidation can be done.

1. Obtain a secured consolidation loan – If you have your own house, then you may take out a consolidation loan that is secured. You can obtain this loan at a low rate of interest. If you owe huge amount on your payday loan, then this option will help you pay off the loan.

2. Search for private lenders who will give money – If you have too many payday loans, then you must be worried as to how you will get rid of them. You may search for private lenders who will provide you money. This way, you will be able to eradicate the payday loans.

3. Use plastic money that do not have annual fees – In order to consolidate payday loan, you may use plastic money that does not have annual fees. Also, see that your credit card charges 0% introductory rate for repaying the loans. You will have to make a single payment every month and pay less in fees and interest payments.

4. Take out unsecured loan from a financial institution – You may obtain unsecured loan from a financial institution that is authentic. For many people, this is a great option since no collateral is required for it. Make sure you have a good credit score if you want to avail the advantage of getting this loan.

5. Ask your friend if they can provide you a loan – You may ask a close friend of yours to provide you a loan. If he agrees to it, make sure the loan agreement is made in a written form. This will enable you to avoid any kind of misunderstanding between both of you. Since you are obtaining the loan from your friend, you can request him to charge a favorable interest rate.

If you have taken out a payday loan, then you should make it a point to repay it within the specified time period. Since you are charged high interest on this loan, try not to delay the payments. Thus, you need to follow the above-mentioned steps when you want to consolidate payday loans and come out of it.

The Overall Essentials Of Receiving Bad Credit Loans

With the current economy, millions of people are on hard times. A large percentage of Americans are suffering financially, and are currently living paycheck-to-paycheck. These people have countless bills to pay. For many, the money they make just isn’t enough to cover all of their expenses. They’re constantly forced to make tough financial decisions. Do you make a payment on your credit card this month, or do you pay your electricity bill? These types of tough decisions can have drastic financial effects. For those living from paycheck-to-paycheck, it’s not uncommon to find many with bad credit. Thankfully, there are more bad credit loans becoming readily available to offer financial assistance.

Bad Credit Loans In A Nutshell

Bad credit loans are essentially loans created for those with poor credit. Most major lenders are very strict when providing loans to individuals with poor credit scores. A bad credit score is roughly any score that falls below 579. Most major lenders won’t bother to entertain the thought of lending to borrowers with any score less than 620. Although some major lenders will provide loans to those with slightly lower credit scores, the interest rate will be much higher than average.

If you have bad credit, and you need a loan, there are various lenders you can turn to. These lenders specialize in lending to riskier borrowers. Unfortunately, the majority of the terms provided aren’t in the borrower’s favor. Although many bad credit loans are unsecured, lenders will likely require extremely high interest rates.

What Can Bad Credit Loans Be Used For?

The great thing about bad credit loans is the fact that they can be used for nearly any purpose. For many people, these loans are used for emergency situations. Let’s say your car will be getting repaired for the next two days, but you need a car to get to work for the time being. A emergency loan can be used to purchase a rental car. You simply visit a lender, apply for a short term loan, and use that money to rent a car for the next two days.

Other people may simply use a bad credit loan for personal reasons. Personal reasons can include anything from buying groceries, paying your utility bill, buying a new pair of shoes, or anything you need. Maybe you have your eye on a brand new purse, but you won’t have the money for it until you get paid. In this case, a payday loan will likely come in handy.

Bad Credit And Short Term Loans

For those who have bad credit, and need money in a hurry, short term loans are going to be very beneficial to you. A short term loan is essentially a loan paid back in a very short amount of time. With loans from most major lenders, the loan term can range from a couple of months to several years. The length of time for short term loans is generally a couple of weeks. Thankfully, with short term loans bad credit isn’t a problem.

Short term loans are generally synonymous with payday loans. The terms of a payday loan require the borrower to pay back the loan on their next payday. Let’s say you get paid in two weeks, but you need a little extra money until then. A payday lender can directly deposit a short term loan into your bank account. However, in two weeks, your lender will withdraw from your bank account, the amount you borrowed plus interest. You can find payday loans online. Because of the terms, it’s usually required that you have a checking account and are currently employed. For a short term loan, you can expect to pay anywhere between 15% and 30% interest.img_back3

What To Consider Before Getting A Loan With Bad Credit:

Credit Score
Even though bad credit lenders are more lenient with borrowers, when it comes to credit history, you shouldn’t be surprised if they’re much more strict in other places. As stated before, because lenders are dealing with riskier clients, they have to compensate by charging higher interest rates. The amount of interest you pay will generally depend on your credit score. This is why knowing your credit score is very important. You can receive free credit reports online. You credit score can give you an indication of what to expect from your lender.

Erasing Debt
Before you apply for that loan to buy a new car, you may want to consider lowering your current debt. Your credit report documents all debts you currently owe. Erasing some of this debt can increase your credit score. A higher credit score means lower interest rates on your loan.

Paying Back Your Loan
Taking out a loan with the intent of avoiding repayment is a crime. This type of act is fraudulent, and will not only damage your credit even further, but could land you in jail. When taking out personal loans, you have to consider the entire amount that will be paid back. Although most unsecured loans require no collateral, you shouldn’t be tempted to borrow more than you have to.

There are millions of people currently living with bad credit. More and more lenders are taking note of the current economic conditions plaguing many Americans. If you have bad credit and need a loan, taking the above information into account can surely help.