Targeting Bad Credit Individuals with Payday Loans

Written by David Schmidt. Posted in Payday Loan Debt

Given the current state of the economy, there are millions of people who are suffering from bad credit and a lot of debt. More importantly, there are a lot of poverty stricken individuals who are suffering from a poor life that makes them easy targets for certain marketing tricks by the payday loan industry. The people that have started marketing campaigns in the industry are ruthless for their ability to market well to individuals that do not really benefit all that much from getting payday loans in a fashion that traps them into paying for months or years.

It is a shame that so many payday loan companies utilize this method, but it is something that is being contested for many months. The reason it is so contentious is because there are a lot of people getting into debt due to these advertisements. The government thinks they are too aggressive and many people who follow the debate would agree.

Bad Credit OK Advertisements

A lot of the payday loan companies have things that are along the lines of “bad credit OK” or similar such statements that can really cause problems for people that are trying to avoid getting into debt. When it comes to most debt, there are a lot of barriers to entry and most bankers and creditors are not going to openly advertise to waste their time with people that will not pay them back. Because the payday loan industry actually makes more money and profits off of failure, it is a good idea for them to advertise to anyone in this way.

There is a huge difference between the payday loan industry and that of many other industries. The main difference is just that the payday loan companies can really benefit even when someone is in financial trouble. By getting them hooked on a payday loan trap, they can get money from them for many months and years on end without ever having the original debt paid off.

This is one of the biggest problems with the payday loan industry and it is one that is forever costing people a lot of time and money. Hopefully it is something that can be curbed with price or interest rate capping, but there is a lot of evidence to suggest this will not help. Northern states have tried these and other methods so it is just up to the government to stop aggressive ads and educate people about finances.

Easy Money Hard to Resist

The payday loan companies prey on the fact that it is easy money and very hard to resist. Most people who are considered to be poor will try to get these funds as soon as possible, but with the right education can be convinced that it is not worth it to get into this type of debt. We can’t stress enough that if you must get a payday loan shop around to get the best rate and make sure you can pay it back quickly. If you find yourself in deep with these debts please give us a call. We can absolutely help you out of the trap.

Short Term Lending Database

Written by David Schmidt. Posted in Payday Loan Debt

Across the United States, there are new technologies being developed every day that can help people to make better decisions. When it comes to collecting data in the public’s interest, the government is very interested even if they are slightly behind the times. A new database proposition in Alabama has payday loan companies up in arms. The short term lending database in has attracted the eye of a few payday lenders that are not at all happy with the legislation. In fact, they have gone so far as to file a lawsuit to block the legislation from going anywhere.

Lending Database for Payday Loans

The lawsuit has been filed by companies in Alabama called Cash Mart, Rapid Cash, and a few other lenders. They claim that the Banking Department is working outside of bounds of their authority in order to over regulate the payday loan industry. While they have a valid point, it is hard to say where it will be valid in court given the public’s opinion on the payday loan industry.

Most people consider the industry to be very low quality and offering high interest rate loans that can really ruin some peoples’ lives. The majority of people who are dealing with these lenders are getting into debt with lenders and then finding themselves in debt with other companies to pay off the first debt. This type of payday loan trap is exactly what the government is seeking to avoid.

More importantly, the government wants to avoid lenders from providing loans that are over the $500 cap. They claim that the database is going to offer the tools necessary to track this type of thing and ensure that people do not end up paying too much for their loans.

Creating the Lending Database

After a law called the Deferred Presentment Services Act was passed in 2003, the regulators have been trying to implement it in order to get the database they need for protective purposes. For many years it was too difficult to pass any legislation that would allow the government to create a relevant database to track the lenders.

Today, it seems like it is a much more viable opportunity for the legislators to get the job done. Though most people are in favor of anything that helps the government regulate the payday loan industry, the legal representation of the industry is very strong.

Whether or not the database will be created is up to the courts to decide. Popular opinion says that they will be willing to create whatever it takes in order to stop the lenders from taking advantage, but lawmakers are a little more skeptical. The legal process for regulation is a tricky subject so it is going to take some time in order to determine the outcome. Overall, the move is an inevitable step in the direction towards regulating the industry with the use of modern technology. The database technology is making it easier to create these types of information banks, but only if the law allows society to do so.

At Payday Loan Management Services we are proud to be one of the very few companies that many short term lenders and lenders that offer signature loans will even work with. Call us at (877)834-6700 to see if we can help you too.

Payday Lenders Targeting Individuals With Bad Credit

Written by David Schmidt. Posted in Payday Loan Debt

Given the current state of the economy, there are millions of people who are suffering from bad credit and a lot of debt. More importantly, there are a lot of poverty stricken individuals who are suffering from a poor life that makes them easy targets for certain marketing tricks by the payday loan industry. The people that have started marketing campaigns in the industry are ruthless for their ability to market well to individuals that do not really benefit all that much from getting payday loans in a fashion that traps them into paying for months or years.

It is a shame that so many payday loan companies utilize this method, but it is something that is being contested for many months. The reason it is so contentious is because there are a lot of people getting into debt due to these advertisements. The government thinks they are too aggressive and many people who follow the debate would agree.

Bad Credit OK Advertisements

A lot of the payday loan companies have things that are along the lines of “bad credit OK” or similar such statements that can really cause problems for people that are trying to avoid getting into debt. When it comes to most debt, there are a lot of barriers to entry and most bankers and creditors are not going to openly advertise to waste their time with people that will not pay them back. Because the payday loan industry actually makes more money and profits off of failure, it is a good idea for them to advertise to anyone in this way.

There is a huge difference between the payday loan industry and that of many other industries. The main difference is just that the payday loan companies can really benefit even when someone is in financial trouble. By getting them hooked on a payday loan trap, they can get money from them for many months and years on end without ever having the original debt paid off.

This is one of the biggest problems with the payday loan industry and it is one that is forever costing people a lot of time and money. Hopefully it is something that can be curbed with price or interest rate capping, but there is a lot of evidence to suggest this will not help. Northern states have tried these and other methods so it is just up to the government to stop aggressive ads and educate people about finances.

Easy Money Is Hard to Resist

The payday loan companies prey on the fact that it is easy money and very hard to resist. Most people who are considered to be poor will try to get these funds as soon as possible, but with the right education can be convinced that it is not worth it to get into this type of debt. We realize that sometimes people need to borrow money but make sure you are able to get these debts paid back quickly or you can find yourself in a trap.

Payday Loan Debt and Tambu’s Story

Written by David Schmidt. Posted in Payday Loan Debt

A Story about payday loan debt

Many of our clients are single moms who are just trying to make ends meet.

There are millions of people who suffer with payday loan debt every single day. The New Yorker recently did a piece on a typical woman who utilized these loans and has found it incredibly difficult to maintain. Her name is Azlinah Tambu and she is a 22 year old single mother who is living in Oakland California.

Finding herself in a tough situation, Tambu had to take five payday loans from five different lenders so that she could fix her car. This is a typical story that occurs to so many people in the country and it is something that many legislators are worried about.

Tight Spot for Payday Debtors

Tambu was in an incredibly tight spot because she needed her car fixed in order to get to work and drop off her child at the daycare. She knew that there would be many difficulties in paying off the payday loans because she needed her actual paycheck to pay for rent and utilities. Unfortunately, she was not anticipating the type of trouble that she was going to have with these lenders.

In the state of California, there is no legal “roll over” where a lender can refinance loans. Tambu had to pay back the first loans, but she then needed to take out more money from the same lenders and incurred even more fees. Lenders tried to withdraw money from her checking account, but she had almost nothing that they could take. When they tried, she over drafted and was charged with over $300 in overdraft fees.

The account fees were quickly paid and she closed the bank account. She is still struggling to pay off the lenders that helped her with the car.

This is exactly what many people in the industry are trying to do because they can gain so much from them. At the end of the day, it is important to remember that the people who are struggling with these loans are not only being taken advantage of in certain situations, but they are also having their life completely ruined.

For a single mother taking care of a child at the age of 22, it is arguably exploitation to have payday loans with such outrageous fees. Although $15 is not really all that expensive for every $100 borrowed, it can still add up to a lot with 15% interest every few weeks.

Tambu’s Aftermath

Unfortunately, the story for Tambu has not gotten any better. She visits all 5 payday lenders to provide approximately $40 to each in order. When asked whether they should be illegal, she quickly responded that they should not. In fact, she is working so hard to pay them off so that she can utilize them later on if needed.

At the end of the day, it is very important for some of these people to be able to get their hands on money even if it is not in their best interest. But you have to make sure you can pay these back quickly.

How to Handle Loan Sharking

Written by David Schmidt. Posted in Payday Loan Debt

dealing with loan sharks

Dealing with loan sharks can be so stressful

A lot of people who end up in payday loan debt do not realize that there are things one can do to protect themselves from being accosted by loan sharks. Even though the payday loan industry does not enjoy the term loan sharking, it is true that they actually work within a framework that can be considered very similar to such a description.

It is in your best interest to know how to prevent loan sharking and handle these debt collectors as best as you can. Using the following article, you should be able to handle loan sharking in a much better way and prevent yourself from running into problems down the line.

Loan Sharking Legal Protection

What a lot of people do not realize is that there are many legal actions one can take to prevent people from harassing them about outstanding debt too much. One of things that people can do is to speak with law enforcement if there is any kind of threats being made. If there are no assets that have been put up for your payday loans (which is usually the case), then there is nothing a payday loan company can do in order to force you to pay.

Not only should you not listen to these threats, but you should seek legal counsel as well. Given the psychological impact of the fear associated with these threats, it is a good idea for you to consider speaking with someone who can protect you and maybe even help to prevent it from happening in the future. You can also seek help on the FTC’s website or your local attorney general office.

Paying Debts with Consolidation

A lot of times it is one thing to be harassed in an illegal way and another to just have a constant stress of debt that must be paid. In some situations you can help yourself out by just speaking with a payday loan consolidation company about getting help to improve finances. One way of doing this is to get a payday loan consolidation expert who has the contacts and the knowledge to get a lower rate on your bill and help you out in many other ways.

Most of the time, you will find that payday loan consolidation is a great way of handling debt without causing a lot of problems. By far the most important thing for you to consider is a method where you are actually able to handle the debt burden in a much more consistent and easy manner. Then you can utilize your paycheck to pay off a lower interest rate and get the debt off the balance sheet.

Most people do not realize the implications of a high debt burden on credit and other things that can happen. If you are struggling to find out methods where you can pay off your debt and avoid a loan shark, getting a consolidation of some sort is definitely a good way of going about things.

Payday Lending Study Sheds New Light on Industry

Written by David Schmidt. Posted in Payday Loan Debt

The payday loan industry is one shrouded in mystery and secrecy from the inside. On the outside looking in, it is vilified as one of the worst industries that take advantage of a variety of people in all walks of life. However, the Community Financial Services Association of America has covered a recent study that indicates another face altogether.

The New York Federal Reserve Bank did a survey / study on the use of payday loans and found some astounding facts. The following analysis of these facts might help a skeptic to understand how payday lending is still growing popular despite political backlash.

Competing Programs and Payday Loans

There are many competing financial institutions, such as banks, that do not like the idea of a payday lending company. Not only do they put financial problems into the hands of unlicensed individuals, but they also charge far higher rates for loans without any collateral.

The study shows that banks are actually more likely to charge higher fees in some areas of their business. For example, the median price with payday lending was $27 for an overdraft while a bank with deferred deposit credit can be $15 – $100.

The flat rate for OD providers can make it even pricier no matter what size loan that you have. That can be construed as a way of making exorbitant amounts of money without needing to charge high percentage rates. They just fall as high percentages of the overall loans for the majority of those who take money out.

The report seems to debunk some of the myths about the high prices of payday loans. Even though there is plenty of bad that goes on in the industry and lawmakers are currently in the process of rectifying the system, it does not mean that it is as bad as many of the people say.

Competitiveness and Formalities

When using payday loans there are other advantages as well. Consider that time is money and you will see the added costs of formalities that banks and other institutions cause. In some situation the formalities can be very expensive not just in time but also in money. There are a lot of different payments that these institutions often want.

As far as competitiveness is concerned, few will argue that payday lenders are scrupulous owners with great rates. However, the stereotype that they are the lender of last resort with the worst possible fees seems to be overblown. Perhaps it is overblown by the very banking institutions that wish they did not have competition from the payday lenders in the first place.

USPS Butts Head with Banks

Written by David Schmidt. Posted in Payday Loan Debt

post office issuing loansThe United States Postal Service (USPS) has been around for many years and done a fabulous job delivering mail. As email has spread throughout the country and phones are more ubiquitous than ever, the USPS has had less revenue coming from typical sources. This has forced them to seek other means of generating revenue in order to keep afloat.

The latest idea includes taking on many of the lending services that banks hold dear. They have decided to enter “non-bank financial services”, which stays out of the way of banks in name, but in practice is a little bit different.

Bank Competition and USPS

The Office of the Inspector General has stated that the USPS is not going to become or compete with banks, but instead offer complimentary offerings of most financial institutions. What this means exactly is unknown, but discussion of digital currency is high on the list.

The vast majority of people who are competing in this industry know that the digital currencies are the way to go. Bitcoin and other new digital currencies are making their moves across the world and becoming incredibly popular. Because they are so independent from other currencies and they are allows to operate on the free market, it makes sense that people would really be drawn to these.

The USPS is looking for a way of seizing upon this popularity and the future before the banks can offer the services. However, there are many legalities that come into play when discussing some of the new moves on their part.

Payday Lending from USPS

There are few nice things that people say about payday lending, but the USPS is looking to get in the industry due to the favorable returns. Most people have no idea how profitable the payday loan industry really is, which is why financial institutions have started to get into the industry. They are offering more micro loans that require less red tape and collateral.

The USPS has seen the writing on the wall and is stepping up the level of time that they spend focused on such matters as well. It makes sense that they would be seeking any product that could save them time and make them a lot of money.

Even though the digital currency issue is not a big deal with banks yet, the payday lending is going to be a huge problem for a variety of reasons. If they get vilified in the same way that the other lenders do, it will definitely be a disaster for the US government that is sponsoring some of the horror stories associated with payday loans.

Whether the fight between the USPS and the banks will continue indefinitely is unknown as well, but it is apparent that banks do not appreciate what industries they are moving in to.

Payday Loan Alternative in Mississippi

Written by David Schmidt. Posted in Payday Loan Debt

There is a constant fight between lawmakers in government and those payday lenders with the money to influence lawmaking. In the state of Mississippi there is a welcome discussion of an affordable alternative to payday loans rather than banning them or allowing them outright.

The problem with banning payday loans is that it often leaves people with fewer options and no way of getting money easily. Obviously the advantages are keeping people from getting into the payday loan trap, which can be disastrous for their life. Finding an alternative that is affordable compared to payday loans could help to prevent a lot of disaster in many households.

Affordable Consumer Credit Products

Education is one of the most important factors in payday lending and a financial institution called Southern Bancorp has started helping to offer a few unsecured lines of credit for testing purposes. The biggest part of the push is to also educate low and moderate income individuals about the risks of managing debt poorly and protecting finances.

Many people think that this education component is exactly what the industry needs. Considering it is from a financial institution that is based in the community, there is also a level of trust that would not come from a payday loan company. If you are interested in getting an education in the Mississippi area, it is possible to contact them to see whether you can get some assistance.

The small lines of consumer credit will be opened in a similar fashion as the payday loans. Typically the only way that lenders can really make money is by charging incredibly high rates for such low loans. Sometimes this can be excessive and most times the borrower does not pay. This causes a whole host of problems and requires them to charge higher rates.

Will Alternatives Work?

The question whether alternatives will work or not is a difficult one to answer. Most people suspect that it will work in a limited sense, but it will require time in order to educate people. Starting with a single state is the first step, but to get across the country and make an impact on peoples’ lives will be a lot harder. People who are in Mississippi might be able to make the right decisions for their own money in the near future, but it will not be easy for everyone to do so.

Although it is a step in the right direction, it is hard to say that it is worth more than the payday loans that are currently helping people immediately across the country. Getting people to stop using the payday lending will require some great consumer credit appeals from these financial institutions.

Modesto Legislation Fails Again

Written by David Schmidt. Posted in Payday Loan Debt

Modesto payday loansCalifornia has been one of the states that has suffered the most from the economic downturn in the recent years. Most of the citizens that were living from paycheck to paycheck found themselves in debt with the prospect of no job or opportunities. Many California citizens, and those living in Modesto particularly, decided to use payday loans as a way of tiding themselves over. It has had short term advantages, but things are starting to become problematic for debt holders. In order to protect these people from lenders, Modesto legislation has been put forth in order to prevent predatory lending. The latest news from Modesto indicates that legislation has again failed to take action.

Payday Loans in Modesto California

The payday loan industry has made a pretty penny off of the people in Modesto, California. A new report from the Center for Responsible Lending has showed that California people are accounting for over $570 million for the payday loan industry. That is the second highest in the entire United States and among the unregulated states, these lenders are having a field day.

Many of the people who are paying these millions of dollars are living in the Modesto region. This is why the latest legislation was aimed at stopping predatory lending and implementing some of the laws that assist in reining in these types of loans. There are literally millions of individuals across the country who need protection, but it seems slow to come for those in the Modesto region.

One of the largest problems with the latest legislation failure is the fact that it includes so many bigger lenders. Because it has been very difficult to regulate this high interest rate lending, people are starting to get the same type of loans from businesses like Wells Fargo and other well known banks. These have more clout and can help to protect the industry from legislation at the local and federal level.

What is Next for Modesto?

As the latest legislation fails to pass in Modesto, California, (and the state as a whole), the question of the payday loan industry in the state becomes one of curiosity. What will happen to the industry if they cannot operate unhindered? Will they be forced to change their practices and do things differently?

It is an interesting series of questions, but there is no real solid answer. Most of the people in the Modesto region and California are hoping there will be some protection and relief in the near future. While most do not think that they can get all of their problems solved with regulation, it is a step in the right direction for the public.

Right now, the battle becomes how to actually pass legislation that is fit for everyone. Public opinion is against predatory lending, but legal statutes give these businesses the right to practice whatever they want so long as it is within the bounds of the law. It will be tough to restrict them, but legislation must continue through the country. Also bare in mind that all lenders must be licensed in the State of California which includes internet payday lenders.

Do Microcredit Loans Work?

Written by David Schmidt. Posted in Payday Loan Debt

There are many people asking the same question about these things, “Do microcredit loans work?” The answer is yes they used to work wonders when they were first brought to market and no, not anymore though.  People haven taken advantage of them and ended up borrowing more than they can pay back.

When used for what they were originally designed for they had a great track record but companies have found ways to turn a good thing into another drain on the poor and disadvantaged.

Original Micro Credit Loans

These loans were designed to support entrepreneurship and alleviate poverty. They are basically small low interest loans given to the poor. If you were to participate in one of these loans you would have a 95% success rate in paying the loan back and actually making money using the loan for entrepreneurial ventures. When a person paid back these loans they were able to borrow more money. So you built a credit system with the lenders.

Micro Credit Lending

Have You Received a Micro Credit Loan?

You would borrow in groups and invest the monies borrowed into your own businesses. Many a poor man created a successful business by starting out using micro credit loans.

Modern Day Micro Credit Loans

Modern day microcredit loans have taken a very predictable twist and are now being compared to payday loans. They have increased their interest up to 20% and many are now being backed by independent banks who are only interested in their bottom line.

Originally they were backed by non profits and the government.

They prey on the poor and disadvantaged and are quickly becoming another avenue for the loan sharks out there to get a big bite out of the poor and disadvantaged.

With many states cracking down and outlawing payday loans, this type of loan could grow into epidemic levels quite quickly.

Summary

We here at Eliminate Payday Loan Debt highly recommend that people stay away from these and any other high interest short term loans  if you can. Now not only do people need to worry about getting caught in the payday loan trap, they are now needing to watch out for the micro credit loan trap too.

If you have out of control debt we can help. Give us a call toll free at 1.877.734.6700, or fill out our form by clicking here for a free no obligation quote on how we can help you!

Anytime something is too easy, it is usually going to cost you in the long run. I hope this information helps you make wise choices when choosing who you do business with when borrowing money!

 

Wonga Profits Soar

Written by David Schmidt. Posted in Payday Loan Debt

Austerity measures are in effect in many parts of the world and the United Kingdom is one of the hardest hit regions. Although the long term fiscal situation looks better as a result of austerity, the short term is often totally destroyed. There are some companies that can do very well within such conditions, which is why the payday lender Wonga is profiting so much lately. As of early September, the Wonga profits were said to have reached nearly 2-3 million dollars per week. Although the United Kingdom market is fairly small compared to the United States, on a per person basis they have more debt.

UK payday loans

Just like the US payday lenders have taken root and many people are getting into the trap

Wonga and Payday Lending

Wonga has been in the news a lot lately for a number of reasons. First, it is obvious that they are one of the main targets of the libraries in Nottingham and other places across the United Kingdom. The libraries have banned the use of the public computers in order to access these websites. Wonga was among the 190 or so websites that have been banned.

However, the bigger news for Wonga is not that they were banned from some libraries, but that they have been able to make profits that are many millions of times what other small lenders are able to create. That means they are using a wide variety of methods, including some questionable marketing, in order to make their millions every single week.

The Wonga company has reportedly only been able to make such profits within a week for the simple reason that payday loans are soaring.

Payday Lending in UK and Wonga

The payday lending industry has grown tremendously in the past few years largely due to the austerity measures already explained. Still, that does not explain how it is possible for companies like Wonga to be making nearly 2-3 million dollars (1.2 million pounds) in a week.

The real truth is that the number of payday loans has soared by over 70% in the past year. People who need money are not able to go to the government, which is also strapped for cash, but instead are forced to go to these lenders.

At the end of the day, the industry is able to approve tens of thousands of loans every single day just because they are facing such austerity measures at home. The Wonga number approves 10,400 loans every day and is being accused of profiting from the misery of the poor.

However you view the companies in the United Kingdom, the payday lending industry has definitely been able to do quite well from a financial perspective. Just like here in the United States. There are so many variables involved with the austerity aspects of the British system that it is hard to say whether that is a direct correlating factor, but a 70% increase would indicate that it has something to do with it. Wonga is taking advantage and without proper legislation to protect people from predatory lending, it could get even worse for the people in the United Kingdom.

Payday Loans For Christmas

Written by David Schmidt. Posted in Payday Loan Debt

payday loans at Xmas

When Christmas comes around be careful about borrowing money

Yes, it is that time of year, and hopefully by sharing a bit of knowledge about this business people will not be getting payday loans for Christmas!

This is the time when all the talk of easy cash and money in your account within 24 hours sure sounds good, but let’s put a bit of a reality twist into this and see what it really looks like,

The quick sell

What you hear when these companies advertise for the holidays is how you will have enough money to get those gifts you need, and maybe a bit left over to treat yourself and your significant other with a bit of luxury at Christmas that you normally would not be able to afford.

This all sounds great, and you only have to make one payment on your next payday. It is a very hard deal to ignore, especially if your credit is less than perfect and getting a conventional loan is out of the question.

But make no mistake about it, it usually never goes this way. Let’s take a look at how the real outcome plays out.

The reality

What usually happens more times than not is the customer has borrowed more than they can pay back, and they end up rolling the loan over. Before you know it, their next payday rolls around and again they do not have enough to even pay down on the loan, so they roll it over again or borrow more to make the payments. This creates a vicious cycle and turns into a trap.

This happens on average 4 to 5 times, and at the tune of about $150.00 minimum a roll over they soon become trapped. Then their bank account becomes in the negative and the bank charges begin to build up and well, you can guess where this ends up.

If the customer is smart at this point they will stop all payments and contact a payday loan consolidation company. By now they are in way too deep to handle this by themselves and they are in need of some serious help.

In Conclusion

Hopefully the above information will help clarify why we should never take these loans out for any reason, and what you can do if you do get trapped.

If you are caught in the payday loan trap and need help give us a call toll free at 877-734-6700 or fill out the form on this site for a free no obligation quote on how we can help you.

Do yourself a favor and make sure you do not end up paying for those Christmas gifts for the next year or longer!  If you can afford to buy presents then by all means do so but if you have to go into debt to get gifts be very careful.

Are Payday Loan Debt Consolidation Companies a Scam?

Written by David Schmidt. Posted in Payday Loan Debt

payday loan debt consolidation company

We are a family owned payday loan consolidation company.

The question going around the payday loan news sources lately is “Are payday loan consolidation companies a scam?” The truth is many can be just that. So many companies out there use the credit card debt consolidation model as their way of doing this type of service and that isn’t the right way to do it. Most companies will hold onto client money for months at a time and build up a fund. If lenders aren’t being handled and dealt with immediately it creates more problems and the clients suffer for it.

Seems whenever people are in trouble with money it alerts the sharks out there that are just waiting to benefit on peoples misfortunes.

Scams or good business?

There are many companies that will promise you lower or no more interest rates, elimination of legal issues, and low payments. They will promise anything to get your business, but in reality they are just out to get your money.

Several non profit consolidation companies, like the National Consumer Council and Debt Management Foundation Services, have been caught investing in for profit companies.

Many consumers are finding themselves in more debt than they started out with, and damage to credit ratings is also a major result in doing business with these fraudulent companies.

What to watch out for

There are ways of protecting yourself when researching consolidation companies. Here are a few tips that can help make your choice a bit safer.

  1.  Be mindful of non profits and companies that hold your money for months at a time before paying paying lenders. Make sure you research these companies.
  2.  Always read all the fine print.
  3.  An honest company will supply references and have good reviews from customers who have used their services. Check them out!
  4. A good payday loan consolidation company will charge you a one time fee, and all of its intentions will be clearly listed on its contracts.
  5.  Watch out and avoid hidden fees. Ask for the complete cost.

Summary

There are good consolidation companies that will deliver on what they promise, and we are one of them. We here at Eliminate Payday Loan Debt pride ourselves on being one of the oldest and most reliable companies in the industry.

If you are in trouble with payday loan debt and need help, call us  toll free at 877-734-6700 or fill out our form  for a free no obligation quote.

We will talk to you, discuss what we think would be your best options, and help you eliminate payday loan debt!

Don’t get caught up in the scams that have infested the loan industry, and make wise choices when it comes to working with your debt. Peace of mind is right around the corner with the right company!

 

UK Charter Demands New Payday Loan Rules

Written by David Schmidt. Posted in Payday Loan Debt

Payday loans are a hotly debated subject as many people already know. In both the United States and the United Kingdom, it is difficult to reconcile the incredible interest rates that some people are paying with the service that payday lenders are providing. As The Guardian reported recently, the most recent news from the UK is that a charter has demanded lending rules to become stricter in the country. This is on the back of several local moratoriums on payday lending in public locations. It is making life for the payday lenders very difficult, but there is a possibility of compromise.

Charter to Stop the Payday Loan Rip-Off

The new UK charter is aptly named the “charter to stop the payday loan rip-off”. It is created by staunch advocates of a payday loan free country and although this group does not have the power to shut them all down instantaneously, it can sway public opinion. Indeed, public opinion is already in favor of cutting the interest rates that payday lenders are allowed to charge for their services. Most of the time, the interest rates soar above 400% or more which causes more problems for people than benefits.

Even though there are plenty of people that love or need access to the quick money, it is not helping them in the long-run and is poor for the community as a whole. Impoverished people should be looking for modes of employment rather than using a cheap source of debt to fuel their livelihood. This is one of the main reasons the charter was formed in the United Kingdom in order to get rid of the payday lending companies altogether.

Clout, Power, and Payday Loans

Unfortunately for the charter, there is no way to end the “payday loan rip-off” from the United Kingdom completely. The biggest payday loan companies in the United Kingdom are well equipped to handle the political hailstorm that seems to be coming. Most of them have done a good job of meeting and befriending the contacts that they need to stay in business. More importantly, many of the largest banks in the world are seeing the profit in payday lending so they have purchased these nationwide companies for themselves.

The legal battle will most likely be a long one as the payday loan industry maintains a tight grip on the power supply while the peoples’ demands are being ignored. There are millions of people in the country who are crying out to stop the financial abuse of the poorest citizens. Even if they do not have much power, they are large in number and can sway the elections no matter what connections payday lending companies might have.

The battle in the United States is much like the United Kingdom, but it varies from state to state. Some places in the Northeast (such as New York) have been firm with payday lenders recently, but other states have showed no intent to restrict the use of these loans for the people who are in need of money. Only time will tell how payday lending in the US and UK turns out. But we are here to help anyone who really needs assistance in getting these loans paid back in a more affordable manner.

How to Start Eliminating Payday Loan Debt

Written by David Schmidt. Posted in Payday Loan Debt

Get out of debtThose who have decided that payday loan debt is weighing them down have got to put some effort into getting rid of their problems. Nobody is going to eliminate payday loans without putting in the hard work, but this article is going to help guide to towards the ultimate goal. Those who are interested in how to start eliminating payday loan debt can use this article as a guide for them to get debt free and make a change with their life.

How to Start Eliminating Payday Loan Debt Now

There are many ways to start eliminating your debts, but taking action immediately is the first step. The thing that should come first is to speak with a payday loan consolidator if you have multiple loans to many different lenders. These types of people are looking out for your well being and can negotiate in order to reduce your total monthly bill.

The payday loan consolidating professionals will be able to get your monthly bills reduced so that you are no longer spending all of your money on this. After you have spoken to a consolidator, you can start to do some belt tightening of your own. Make sure you are living in a location that is not costing too much in monthly rent. Then you can also take a look at transportation and living expenses. Try to “trim the fat” wherever it seems possible to do so.

Often, you will notice that transportation in a car can be expensive with modern gas prices. If you get the bus transportation option, you can save a lot of money and typically the money saved can be spent on paying off your bills every month. Furthermore, food costs are high so eat food that you buy from the store more often than you go out to eat. Paying for labor at a restaurant is not a good use of your money.

Anyone who is learning how to start eliminating payday loan debt can put hard work and dedication into the project in order to see results. However, it requires diligence in order to get rid of the debt with the help of a payday loan consolidation specialist.

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