Blog @ Pay Day

Your credit cards are maxed out and your bank account is down to $3, when surprise surprise, your car breaks down. You need to get your car fixed so you can get to work, but you wont be getting paid for another week, so how are you going to pay the mechanic? A payday loan may be the answer.

It may be hard to believe, but easy online payday loans did in fact save my life. I'm sure there are other stories out there similar to mine, but this one is definitely an eye opener -- as it shows what can happen when simply "waiting" for your next paycheck.

I have been working in the payday loan industry for over a year now. Working in this industry has made me view payday loans from the inside out. And frankly, I don't like what I see. When I entered my first day at Advance America, I was certainly no stranger to payday loans; I was a customer at a rival store down the road. I knew the basis of how they worked, the interest rates, and the towering APRs, or annual percentage rates. These could be as high as 638% for a ten day loan.

It is no secret that payday loans are everywhere – in storefronts, on the Internet and in your Yellow Pages. A payday loan is a small, short-term loan that is intended to be paid back on the date of your next paycheck. Most payday loans have high interest rates because this is the only way that the payday loan companies can make money, since the term of the loan is short.

There are times in your life when you need cash for an unexpected emergency. If you have no other options available to you, a payday loan could be one way of accessing the money you need at this time. Payday loans, also called a cash advance or paycheck loans, are a type of personal loan.

The Commonwealth of Virginia temporarily ended legislative hearings Tuesday (December 5) that dealt with the issue of payday loans. The House of Delegates panel, with a vote of 10 to 8, rejected a bill presented by Delegate John O’Bannon (Henrico) that would have repealed the law that opened the way for this type of notorious consumer practice. The Virginia General Assembly passed the law in 2002 in an effort to regulate payday lenders who had moved into the state while partnering with out-of-state banks.

The payday loan is classed as a short-term debt instrument, usually requiring payback within fourteen days or less. Makes sense, right? You get a loan until next payday, then it’s due. Although the quick cash infusion might help you this week, ruinous interest rates can leave you grasping for funds as the next pay period winds to a close.

Payday loans were carrying overwhelming interest rates of up to 900% and killing the people most in need of help. Reeling people in by promising easy applications and no credit checks made an overnight success of a relatively simple concept. We give you the money you need quickly and charge you up to 900% interest to pay it back. A loan law enacted in 2005 was set to eliminate this loan shark attitude. The law worked wonderfully by capping interest rates and unifying collection practices until a loophole was found, making the rich, richer and the poor, further in debt.

If you're in the market for a payday loan, you had better be careful. Although there are many payday lenders that won't try to take advantage of you, there are just as many who will. Having said that, try to keep up to speed on the laws about payday loans, especially those that are unique to your state.

Just about everyone has money troubles once in a while, and some of us more frequently than others. Although a payday loan might seem like a quick fix, it may very likely become a decision that you'll soon regret. So, if payday loans are so bad, how come the Internet has so many positive things to say about them?