Bad Credit Payday Loans Lender
Where To Get Real Debt Relief Help With Payday Loans
By Brook Evans
Perhaps you have taken out more than one cash advance and have no way of paying them off. If that is the case you may be wondering, where can I get real debt relief help with payday loans. The answer is debt consolidation loans. These types of funding are for many different kinds of financial obligations and more recently this includes payday loan debts.
When you think about it, there are many times when you need quick cash for emergencies and you do not have any other sources of funding such as a savings account or relatives or friends to rely on. This is when this type of funding comes in handy. You are basically borrowing against your next paycheck and the funds borrowed are for a short term, they usually have to be paid in two weeks or sometimes a month.
To apply for this type of funding is fairly easy, you can find many cash advance lenders online, and if you have a savings or checking account you are in business. The application process is simple to complete and as long as you meet the requirements you can get a cash advance. Usually you must be at least 18 years old, have a valid checking or savings account, valid identification such as a driver's license or state ID and have a monthly income of $1,000 or more.
The way the process works is that you apply and within minutes your application is approved for the funds. These funds can run anywhere from $100 all the way up to $1500 depending on your needs and income. Once you are approved and sign the agreement, you funds can be delivered into your bank account the same business day or at the latest the next business day. You can then withdraw the funds and use them as you like.
There are some advantages and disadvantages of taking out these types of loans compared to traditional funding. One factor is the interest rates on the loan which tend to be rather high. The other factor is that it must be repaid with your next pay date. If you fail to comply with the terms, the lender will tack on higher interest rates making it more difficult to pay off.
This is where you will need to be responsible when taking out cash advances. The most sensible thing to do is do not get more money than you actually need, only get the bare minimum to avoid the higher interest rates on a larger advance. Also do not take out more than one at a time. Since they are easy to obtain many have fallen into the trap of taking out more than one and end up not being able to repay the debts because of the enormous interest rates.
When the loan comes due, make sure that you have the funds in your bank account to repay it. Usually if you have direct deposit which most lenders will require, it makes it easier and more convenient for them to get their money. Cash advances should only be used for emergencies only. This way if you handle the obligation responsibly you will be able to use this funding source any time unexpected events arise.
If you do happen to get into trouble by borrowing against your paycheck there is relief through debt consolidation loans. You should speak to a professional about your situation and work out a repayment plan with them that fits your budget.
Debt Relief Solutions
By L Edge
U.S. consumer debt is at approximately $21,900 per household, nearly double what it was ten years ago. Consumer debt today equals 132% of the average household's annual disposable income. Many families are looking for solutions to their mounting burden of debt. There are essentially two major avenues for relief - non-bankruptcy options and then bankruptcy.
Non-Bankruptcy Debt Relief Solutions
Liquidating assets. This is the most commonly used non-bankruptcy debt relief solution. Because it is easy, many people invade their retirement accounts but there are often tax implications for early withdrawals. Refinancing a house and using the equity to repay other debt is another popular option. But of course you must pay for it plus interest plus any refinancing fees over a 20 or 30 year period.
Credit card cash advances and balance transfers. These are often readily available options but at high interest rates. Too often these solutions are only temporary and if a person's spending habit hasn't changed, those individuals will find themselves right back in the same situation of too much debt and too little cash.
Credit counseling. Credit counseling is a surging industry that has come under scrutiny because many of the outfits function like glorified collection agencies, receiving fees from clients' creditors on recovered debts. Success is low and the payments often exceed what people can afford on a monthly basis. Another issue is creditor participation - not all creditors will participate. Here are some tips if you are considering going this route:
1. If you are considering credit counseling, make sure you do it face-to-face. Do not provide a voice over the phone with all of your important information. These days, you can not even be sure that the voice on the phone is even in the United State.
2. Ask the credit counseling company if they can assure that all of your creditors will participate. If you have a creditor that is not covered then you have a debt that will have to be settled outside of the credit counseling plan.
3. Make sure that you can pay both the credit counseling amount plus the amounts you might have to pay outside of the plan.
4. The credit counseling alternative will not address payday loans, secured debts and old liabilities which are in collection.
5. Credit counseling will be reflected in your credit report and will impact your credit rating.
Negotiated settlement with creditors. This could take the form of a reduction in principal for a lump sum payment or simply extended payment terms. The risk in this strategy is your creditors taking damaging actions against you before you have time to amass sufficient cash to pay your creditors the settlement amount. Proceed with caution and hire a bankruptcy attorney to assist you. A reduced principal settlement can have possible tax implications. If negotiating extended payments be mindful of the interest rate and know when the debt will be fully satisfied. Insure that you are dealing with someone who has the authority to negotiate a settlement with you. Be certain that all of the debt is settled and released whether through a lump sum payment or extended terms.
Loss mitigation and loan modifications are debt relief options for mortgages. Loss mitigation works to either relieve the homeowner of the mortgage obligation or create a mortgage resolution that is financially feasible for the homeowner. Loss mitigation options include:
Loan modification: This option modifies a homeowner's mortgage and both the lender and homeowner are bound by the new terms. The most common modifications are lowering the interest rate, reducing the principal balance, 'fixing' adjustable interest rates, increasing the term of the loan, forgiveness of payment defaults and fees, or any combination of these.
Short sale: This option is made possible by a lender agreeing to accept a payoff that is less than the principal balance of a homeowner's mortgage which in turn permits the homeowner to sell the home for the actual market value of the home. This applies to homeowners with a mortgage balance greater than the market value of the property. Without such an agreement the homeowner would not be able to sell the home. There can be, and usually are, tax consequences to these deals as well as harmful effects on one's credit rating.
Short refinance: This option is possible when a lender reduces the principal balance of a mortgage so that the homeowner can refinance with a new lender. The reduction in principal must be sufficient enough to meet the loan-to-value guidelines of the new lender making refinancing possible. Tax and credit consequences are the same as with short sales.
A deed in lieu of foreclosure: An option whereby a mortgagor voluntarily deeds over the collateral property in exchange for a release from all mortgage obligations. This is extremely damaging to credit ratings.
Forbearance: This is an arrangement that allows the homeowner to make no monthly payment or make a reduced monthly payment for some period of time. Sometimes, the lender will ask that the reduced or missed payments be repaid when the forbearance has been finished while other times the lender will just modify the loan.
Simply put, bankruptcy is the legal forgiveness of debts. The bankruptcy laws changed in 2005 but you can still file. It is a bit more complicated now which makes it even more important than ever before to be represented by a bankruptcy lawyer or expert legal counsel that specializes in bankruptcy.
There are two types of personal bankruptcy, Chapter 7 and Chapter 13.
Chapter 7. This is known as the "complete or straight bankruptcy." In Chapter 7, a debtor turns over his non-exempt property to a bankruptcy trustee who liquidates the property and distributes the proceeds to the unsecured creditors. The debtor is granted a discharge of some debt; however, certain debts (e.g. spousal and child support, student loans, some taxes) will not be discharged. The amount of property that a debtor may exempt varies from state to state. From beginning to end, the typical Chapter 7 bankruptcy will last about six (6) months.
The typical person filing Chapter 7 will have
a. a large amount of unsecured debt [i.e., payday loans, medical debt, and credit card debt];
b. no car loan;
c. no mortgage or does not wish to keep the home;
d. no tax debt; and
e. have little or no assets or income.
A Chapter 7 bankruptcy remains on one's credit report for 10 years. Chapter 7 relief is available once in any eight year period.
Chapter 13. This is known as the "wage earner plan." It enables debtors to retain their assets and make monthly payments for part of the debt to creditors over a 36 to 60 month period. The amount and the time of the repayment plan depend upon a variety of factors, including the value of the debtor's property and his income and living expenses. Secured creditors may be entitled to greater payment than unsecured creditors but debtors get to keep the collateral and often pay less than owed on the obligation.
The typical person filing Chapter 13 may be:
a. behind on the mortgage and wants to keep the house;
b. about to have or are already having their wages garnished and want the garnishment to stop and even possibly get some or all of the garnished wages back;
c. behind on the car note and want to keep the car or they are seeking the return of a repossessed vehicle;
d. owing taxes to the IRS or the State. Taxing authorities must immediately stop penalties and interest on your account as soon as a bankruptcy has been filed.
Unlike in a Chapter 7, a Chapter 13 filer may keep all of his property, whether or not it is exempt. If the plan appears feasible to the trustee it will typically get confirmed and the debtor and creditors will be bound by its terms. Generally, the payments are made to a trustee who then distributes the funds according to the terms of the confirmed plan.
When the debtor makes all payment as detailed in the plan, the Court will grant the debtor a discharge of the debts listed in the plan. However, if the debtor does not make the agreed upon payments, the Bankruptcy Court can dismiss the case. Upon dismissal, creditors will likely pursue legal remedies to the extent a debt is unpaid. A Chapter 13 bankruptcy remains on one's credit report for up to seven years after filing a case.
When should you consider bankruptcy?
1. If you have been served with lawsuit, judgment or possible garnishment.
2. If you are considering liquidating assets, refinancing you home, or cashing in your 401k to take care of certain financial matters.
3. If you are behind on your mortgage payments. Also if you have a foreclosure pending or intent to foreclose has been issued by the lender.
4. If your vehicle has been repossessed or you fear your vehicle will be repossessed very soon.
5. If you owe money to a taxing authority.
6. If calls from creditors and/or collection agencies are causing you and your family stress.
The down side to bankruptcy is the impact on your credit score, however, even after filing bankruptcy, if you make timely payments to creditors, within 18 to 24 months, your credit score should significantly improve itself so that you do not have to rely on sub-prime lenders and you should receive more favorable interest rates on loans. The upside to bankruptcy as a debt relief solution is that you get a fresh start without the burden of some or all of your debt.