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Member You - Should You Ever Take a Payday Loan?
I was checking out the independent films at Netflix a few minutes ago, when something startling happened.I came across a DVD cover with an oddly familiar blue eyeball staring at me.“I know that eye” I thought.“Wow, imagine being able to recognize an eye” I continued to silently mutter to myself.“Gee, we have amazing perceptual abilities,” I went on to remark, still dazzled by my find.Then I tripped off on a thought chain about retinal scans and the like, when it hit me.“I know who that eyeball belongs to!”As it turns out, I believe it belongs to a fashion model, bu
Original loan amount: $400
Fresh lending fees payable: $60
Late fees payable: $60 (assuming late fees apply at the same rate as lending
fees)
Lending fees already paid: $60
Total: $580
At the end of this period (which is 4 weeks from the day you originally took the loan), you decide that you don't have $580 available and so request them to roll the loan over for another two weeks. Then this is what it can cost you in total at the end of 6 weeks:
Original loan amount: $400
Fresh lending fees payable: $60
Late fees payable: $60
Lending fees already paid: $120
Late fees already paid: $60
Total: $700
If you continue this process for s
The internet has opened huge doors for the entrepreneurial spirit. It is no longer necessary to achieve new business ventures in the brick and mortar tradition with astronomical start up costs, franchise fees, stocked inventory, and employees. It is now possible for every individual who desires to start their own business from home. The basic start up costs and even the trial and error period have been significantly reduced even in just the last two years.One of The fastest growing home based business opportunities is affiliate program marketing. The basis of affiliate programs is to “borrow” the web site,
However, payday loans come at exorbitant costs. This can -- and often does -- lead borrowers into a downward spiral of rapidly escalating debt. Let's look at the issue from various angles to get a complete picture.
First, the pluses. Here's why cash advances may hold enormous appeal for you.
- You can have bad credit and still qualify for a payday loan. In most cases, no credit check is conducted.
- The process is fast -- it takes as little as 20 minutes to complete. You can even find lenders who target approvals in 30 seconds!
- There are no upfront costs -- so the buy-now-pay-later mentality can find full expression.
- You can apply in person at a local outlet, over the phone or over the Internet.
- You get funds deposited into your bank account in 24 hours.
- Compared to some other sources for cash, payday loans are discreet -- no one else needs to know about it.
- The transactions are secure -- your financial information remains private.
If you're faced with an emergency -- say, unexpected medical bills -- your only consideration might be to get money now. The speed and convenience of a cash advance comes in handy here.
So what are the disadvantages?
The most obvious one -- high costs. A payday loan can cost you say, $15 per two weeks. If you're borrowing only for two weeks, that doesn't sound like much. However, if you calculate the Annual Percentage Rate (APR), you'll see it comes to 391%!
If you don't think that's too much, let me ask you this question. If you invested money in the stock market, what would you consider a good annual rate of return? 20%? Maybe 30%? If you made a 20% return (on average) in stocks year after year, you'd be doing very well indeed. And this is for an investment that's generally considered high risk.
Now compare that with what the payday loan companies charge. You are providing them with a return on their money they likely won't get anywhere else on the planet!
There is another, less obvious reason why payday loans are dangerous. According to some estimates, over 60% of borrowers roll over a payday loan. Many take loans repeatedly, too.
Let's put in some numbers so that you can clearly see what rollovers imply.
Assume you borrow $400 for two weeks at a cost of $15 per $100 per two weeks. At the end of two weeks, you owe them a total of $460.
Let's say you don't repay the $400 at the end of two weeks. Instead, you request a rollover. So you pay them the lending fee of $60 and they agree to roll over the loan for another two weeks. The total cost of the loan at the end of 4 weeks may be as follows:
Original loan amount: $400
Fresh lending fees payable: $60
Late fees payable: $60 (assuming late fees apply at the same rate as lending
fees)
Lending fees already paid: $60
Total: $580
At the end of this period (which is 4 weeks from the day you originally took the loan), you decide that you don't have $580 available and so request them to roll the loan over for another two weeks. Then this is what it can cost you in total at the end of 6 weeks:
Original loan amount: $400
Fresh lending fees payable: $60
Late fees payable: $60
Lending fees already paid: $120
Late fees already paid: $60
Total: $700
If you continue this process for si
According to the American Society for Aesthetic Plastic Surgery, since 1997, nonsurgical procedures have increased by 471 percent. Jeff Russell, CEO of MedSpa Financing, comments “Medical Spas are a natural progression of medical practice expansion, having a medical doctor run them gives them the credibility and public confidence needed for their success.”Before you jump into the Medical Spa industry; keep the following 6 steps in mind:1. Start with a Road MapA business plan is critical for business success, and it is especially important when starting a Medical Spa. Not only is it necessary
If you're faced with an emergency -- say, unexpected medical bills -- your only consideration might be to get money now. The speed and convenience of a cash advance comes in handy here.
So what are the disadvantages?
The most obvious one -- high costs. A payday loan can cost you say, $15 per two weeks. If you're borrowing only for two weeks, that doesn't sound like much. However, if you calculate the Annual Percentage Rate (APR), you'll see it comes to 391%!
If you don't think that's too much, let me ask you this question. If you invested money in the stock market, what would you consider a good annual rate of return? 20%? Maybe 30%? If you made a 20% return (on average) in stocks year after year, you'd be doing very well indeed. And this is for an investment that's generally considered high risk.
Now compare that with what the payday loan companies charge. You are providing them with a return on their money they likely won't get anywhere else on the planet!
There is another, less obvious reason why payday loans are dangerous. According to some estimates, over 60% of borrowers roll over a payday loan. Many take loans repeatedly, too.
Let's put in some numbers so that you can clearly see what rollovers imply.
Assume you borrow $400 for two weeks at a cost of $15 per $100 per two weeks. At the end of two weeks, you owe them a total of $460.
Let's say you don't repay the $400 at the end of two weeks. Instead, you request a rollover. So you pay them the lending fee of $60 and they agree to roll over the loan for another two weeks. The total cost of the loan at the end of 4 weeks may be as follows:
Original loan amount: $400
Fresh lending fees payable: $60
Late fees payable: $60 (assuming late fees apply at the same rate as lending
fees)
Lending fees already paid: $60
Total: $580
At the end of this period (which is 4 weeks from the day you originally took the loan), you decide that you don't have $580 available and so request them to roll the loan over for another two weeks. Then this is what it can cost you in total at the end of 6 weeks:
Original loan amount: $400
Fresh lending fees payable: $60
Late fees payable: $60
Lending fees already paid: $120
Late fees already paid: $60
Total: $700
If you continue this process for s
Are you marketing yourself online? You may be marketing your business online but it is also important to market yourself, as people typically buy from people they like and trust. Of course when they are at their computer surfing the internet they cannot see you or talk to you in person. They must rely on the information that you give about yourself at your website. This means that it is important to build a reputation for integrity when doing business online. In a way marketing online is all about building your reputation as an expert in your field. This type of credibility can be built by posting valuable infor
So what are the disadvantages?
The most obvious one -- high costs. A payday loan can cost you say, $15 per two weeks. If you're borrowing only for two weeks, that doesn't sound like much. However, if you calculate the Annual Percentage Rate (APR), you'll see it comes to 391%!
If you don't think that's too much, let me ask you this question. If you invested money in the stock market, what would you consider a good annual rate of return? 20%? Maybe 30%? If you made a 20% return (on average) in stocks year after year, you'd be doing very well indeed. And this is for an investment that's generally considered high risk.
Now compare that with what the payday loan companies charge. You are providing them with a return on their money they likely won't get anywhere else on the planet!
There is another, less obvious reason why payday loans are dangerous. According to some estimates, over 60% of borrowers roll over a payday loan. Many take loans repeatedly, too.
Let's put in some numbers so that you can clearly see what rollovers imply.
Assume you borrow $400 for two weeks at a cost of $15 per $100 per two weeks. At the end of two weeks, you owe them a total of $460.
Let's say you don't repay the $400 at the end of two weeks. Instead, you request a rollover. So you pay them the lending fee of $60 and they agree to roll over the loan for another two weeks. The total cost of the loan at the end of 4 weeks may be as follows:
Original loan amount: $400
Fresh lending fees payable: $60
Late fees payable: $60 (assuming late fees apply at the same rate as lending
fees)
Lending fees already paid: $60
Total: $580
At the end of this period (which is 4 weeks from the day you originally took the loan), you decide that you don't have $580 available and so request them to roll the loan over for another two weeks. Then this is what it can cost you in total at the end of 6 weeks:
Original loan amount: $400
Fresh lending fees payable: $60
Late fees payable: $60
Lending fees already paid: $120
Late fees already paid: $60
Total: $700
If you continue this process for s
There are so many people who dream about their own small business ideas. The majority will never do anything about it, they just keep it as a dream. They have excuses why they not go ahead. Then there is a smaller group, who actually make their dreams a reality, and make money from their small business ideas.Now, I assume you're in the group of 70%, but are you an excuse maker or a "get the thing going" kind of person? It's your choice who you want to be. Do you want a load full of excuses or a thriving small business?It doesn't matter what excuses you can come up with, they are not valid! How do I
There is another, less obvious reason why payday loans are dangerous. According to some estimates, over 60% of borrowers roll over a payday loan. Many take loans repeatedly, too.
Let's put in some numbers so that you can clearly see what rollovers imply.
Assume you borrow $400 for two weeks at a cost of $15 per $100 per two weeks. At the end of two weeks, you owe them a total of $460.
Let's say you don't repay the $400 at the end of two weeks. Instead, you request a rollover. So you pay them the lending fee of $60 and they agree to roll over the loan for another two weeks. The total cost of the loan at the end of 4 weeks may be as follows:
Original loan amount: $400
Fresh lending fees payable: $60
Late fees payable: $60 (assuming late fees apply at the same rate as lending
fees)
Lending fees already paid: $60
Total: $580
At the end of this period (which is 4 weeks from the day you originally took the loan), you decide that you don't have $580 available and so request them to roll the loan over for another two weeks. Then this is what it can cost you in total at the end of 6 weeks:
Original loan amount: $400
Fresh lending fees payable: $60
Late fees payable: $60
Lending fees already paid: $120
Late fees already paid: $60
Total: $700
If you continue this process for s
The lowly postcard…it’s more than just a "having fun, wish you were here" delivery system. This tiny billboard is actually a powerhouse of a marketing tool with almost unlimited uses. Harness this little dynamo and you'll find a surge of new business opportunities.Here are some reasons your company should consider a postcard:1. Cost effective: A regular-sized postcard only costs $.24 per piece. You can send up to a 4 1/4" x 6" card without incurring additional expense. This cost is before any bulk-mailing discounts, which can substantially add to savings. They are also inexpensive to print, even if
Original loan amount: $400
Fresh lending fees payable: $60
Late fees payable: $60 (assuming late fees apply at the same rate as lending
fees)
Lending fees already paid: $60
Total: $580
At the end of this period (which is 4 weeks from the day you originally took the loan), you decide that you don't have $580 available and so request them to roll the loan over for another two weeks. Then this is what it can cost you in total at the end of 6 weeks:
Original loan amount: $400
Fresh lending fees payable: $60
Late fees payable: $60
Lending fees already paid: $120
Late fees already paid: $60
Total: $700
If you continue this process for six months (more specifically, for 24 weeks), this is what it may cost you in total:
Original loan amount: $400
Fresh lending fees payable: $60
Late fees payable: $60
Lending fees already paid: $660
Late fees already paid: $600
Total: $1780
For an original loan of $400, in a mere 6 months, the payday loan company will collect fees and charges of $1380 from you. That's 3.45 times the amount you borrowed. In APR terms that's 749.5%! If over 60% of borrowers roll over their loans, no wonder many payday loan companies are wildly profitable!
Snowballing costs can easily lead you into a debt trap if you get addicted to payday loans.
So what are the key points to keep in mind when dealing with payday loan companies? Two things:
First, avoid them if at all possible. The best way is, of course, to get your finances fully under control so that you always have cash and / or credit available to meet emergencies.
Second, if you do choose to borrow from payday loan companies, borrow only an amount you're 100% sure you can repay on the due date. If that amount is too low to meet your needs, get additional funding from other sources. Because rolling over cash advances is one of the worst things you can do to yourself.
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