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Payday loans UK – live the king sized life

Author: Amelie Eve

it happens generally that your finances for the whole month is going on smoothly and according to your planned budget but all of a sudden you are faced with a contingency like a sudden disease or a urgent need for repair into your car and you are faced with a short term cash shortage with your salary still awaited and supposed to be received after few days. Then in that case you can either look for some monetary help from your peers and colleges and if you are not willing to expose your financial condition in front of them then all you need to do is to apply for a pay day loans UK and get your problems solved immediately.The financial community engaged in any country works with the intention of penetrating deeper into the market and ensure that more and more peoples are brought into the process of financial inclusion so to fulfill that objective, the concept of pay day loans have been designed to serve the needs of individuals who are facing a short term credit crises.To raise a advance pay day loan the borrower needs to apply for it through a on line process and complete all the formalities sitting right there in the comfort of their home and then write down a post dated check in favor of the lender so that his risk perception could be decreased to the minimum possible level and instant and no credit and faxing pay day loan could be extended to the borrower.To be eligible to avail a Payday loans UK the applicant should necessarily be an citizen of the UK along with being employed decently some where and having a regular source of income and above all he/she should have a active bank account in his name so that the loan amount could be credited to the applicant bank account as soon as t6he f0ormalties regarding the loan are completed.

Article Source: http://www.articlesbase.com/loans-articles/payday-loans-uk-live-the-king-sized-life-2946929.html

About the Author

Eve.amelie is a business writer specializing in finance and has written authoritative articles on the finance industry. He has been efficient in providing useful information about Payday loans UK. For more information about payday loans please visit: www.ask4paydayloan.co.uk.

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Lending Rates Blog ...

What is a Payday Loan?

Author: Alexander Maletin

A payday loan or cash advance is a small, short-term financial instrument that allows a borrower to cover his or her expenses until the next paycheck.
Typically, the amounts of such loans range of 0 to 00, on 10-14 days term and have enough high interest rates (APR) from 390 to 900 percent.

Payday lending is regulated at the state level - each state has its own laws regarding payday loans. Meanwhile, the U.S. Congress passed a law in October 2006 that limits lending to military personnel at 36% APR. The Defense Department was concerned that payday lenders could cause financial challenges for soldiers and even jeopardize security clearances.

Some federal banking regulators are trying to limit or prohibit payday loans not just for military personnel, but for all customers. The high interest rates are considered as a hard financial blow to the lower and middle class people who are the primary borrowers.

Lenders prove that payday loans are often the only available way to get money for customers with bad credit history or who can not obtain another lower-interest alternative, such as a bank loan or a credit card. In their turn, critics say that the most of borrowers find themselves in a worse financial situation when they have to repay their loan. Many of them get trapped into a cycle of unsecured debt.

Statistics compiled by the Center for Responsible Lending show that the large part of the payday lending's profit comes from repeat consumers who can not repay prior loans on the due date and instead prolong their loans, paying extra fees each time.

Retail lending.
Customers come to a payday lending store and qualify for a small cash advance in the range of 0 to 0 with payment on the borrower's next paycheck.
As loan charges, the customer will pay from to per 0 borrowed for 14 days period, which translates to interest rates of 390 to 780 percent (APR). On the due date the borrower returns to payday lending store and writes a check to his lender in the full amount of the cash advance plus charges.
If the borrower does not repay the loan, the lender may process the check traditionally or through electronic withdrawal from the borrower's bank account.

If there is not enough money to cover the check at the checking account, the customer will face extra fees from his bank in addition to the costs of the loan. Meanwhile, the most of payday lenders offer an extended payment plan with no additional fees for customers who can not pay out their loan at the due date. In several states like Washington, extended payment plans are required by state law.

Internet lending.
You can get a payday loan not only from payday lending store, but online through special lending websites. Typically, a customer fills out a simple online application form, where he or she indicates required personal and bank account information, Social Security number and employer information. Some lenders require fax copies of a check, a recent bank statement, and signed paperwork. After instant approving the loan amount is direct deposited into the borrower's checking account. On the due date loan payment with fees is electronically withdrawn from borrower's account.

Examples.
For example, a borrower wants to get a payday loan. The borrower will write a post-dated personal check for 0 to borrow 0 for up to two weeks. The payday lender agrees to hold the check until the borrower's next paycheck date. At that time, the borrower has the option to redeem the check by paying 0 in cash, or renew his loan by paying off the 0 and then immediately applying for an additional loan of 0, in result prolonging the loan for another 14 days period. However, in many states extending of payday loans is not allowed by state law. In states where there is an extended payment plan, the borrower could choose to opt into a payment plan.

The Consumer Federation of America has conducted a survey of one hundred internet payday loan websites recently. The results showed that these lenders offer loans from 0 to ,500, with 0 the most frequently offered. Finance fees ranged from per 0 up to per 0 borrowed. The most frequent rate was per 0, or 650% annual interest rate (APR) if the payday loan is repaid within 14 days.

Exploiting financial emergencies for profit.
Critics say that payday lenders are exploiting consumer's temporary financial difficulties to make high profit. Often payday lenders are targeting their services to young or poor people with low-income. Borrowers simply may not understand that the high APR can trap them into a debt-cycle, where they will have to repeatedly extend the loan and pay growing extra fees every 14 days until they can save enough money to pay off the loan amount and get out of this dangerous cycle. There is an opinion that payday lenders disadvantage the poor people, compared to the middle class who pay moderate interest on their credit cards.

Meanwhile, supporters say that many people that apply for payday loans have already ruined any other available alternatives. They are not able to get a bank loan or a credit card because of serious problems with credit history.

Costs of payday loans.
Supporters of payday loans argue that the processing costs for these loans do not differ from other loans. They say that moderate interest rates for low borrowed amounts and short terms would not be profitable. For example, a 0 one-week loan, at a 20% interest rate would give the lender only 72 cents of interest, which would not cover even processing costs.

Defenders say that payday lenders processing costs are much lower than costs for home loans and other usual loans. Besides payday lenders require only the proof of borrower's income and employment, while traditional loan lenders do full credit checks and value the borrower's ability to pay out the loan.

Article Source: http://www.articlesbase.com/loans-articles/what-is-a-payday-loan-255990.html

About the Author

Alexander Maletin is a writer and online publisher. Visit his site at Payday loan