People Paying their Way Through the Recession With Payday Loans

SolidCashSolutions is one of large payday loan and pawn shop company. They just released their Q4 2020 results. A look at the numbers provides an interesting insight into the payday loan business.

Payday Loan Statistics

In the stores where they offer payday loans, SolidCashSolutions lends up to $1500. The average amount of the loans they make is $555. The terms are generally less than 30 days and average 18 days. The due date for loan repayments fall on their customer’s paydays.

The fee they reported that they earn is 20% of the loan amount. So, if they loaned out $500, the company would receive $100 in fees (or interest). For the fourth quarter they reported an increase of $2.7 million in payday loan fees.

In many of their stores, SolidCashSolutions also offers longer term unsecured loans. These are usually terms of five months with ten equal installments also due on their customer’s paydays. The loan principle amounts range from $1525 to $3000 but average about $2070. With each payment, they report that they earn a 10% fee of the initial loan amount.

Auto Title Loans
At many of their stores, SolidCashSolutions also offers auto title loans. This is where you borrow money secured by the title of your car. They are 30 days loans. SolidCashSolutions reported loan principle amounts ranging from $100 to $9000 with the average loan at around $700. They earn a fee of 12.5% to 25% of the auto title loan amounts. This means that with a $1,000 loan they can receive up to $250 in fees.…

Payday loans are a reasonable way for you to get cash quick. Whether its car repairs, a utility bill or some other emergency, sometimes you just need money fast. The question isn’t whether you need cash fast – you know that you do. The question is how fast you can realistically pay it back.

The idea behind a payday loan, of course, is that you pay it back within a couple of weeks. You take a loan until payday – hence, the name. In concept, that’s not a bad idea. In practice, however, it’s usually a bit stickier.

You see, when payday comes, you are indeed going to have some money. However, you’re also going to have the bills you normally have due on that payday, as well. So, you will often have to re-up on your payday loan, paying yet another fee.

The thing you need to ask yourself when taking out a payday loan, then, is how fast you can repay it. Will it take you two pay periods to have enough extra money in your budget to cover the loan? Three? Even more? If so, you should consider other options.

A credit card cash advance can be another good option, if you can’t repay the payday loan quickly. By paying your credit card off over time, you can pay less in interest.

Be careful here, though. If you only pay the minimum amount on your credit card cash advance, it can take a long time – much longer than the two or three pay periods you were planning on – to pay off the loan. If you do that, you’re going to accrue plenty of interest charges, and you’re going to wind up paying more in interest.

Another question you need to ask is what other options you might have. For example, taking a loan from a friend or family member will have significantly lower interest charges. Of course, in some cases it can lead to problems with your relationship with that person, at least if you have trouble paying the loan back.

You might be able to take out a personal loan from your bank, but the amounts of personal loans tend to be much higher than the small amounts of cash that people usually take out in a payday loan.

Ultimately, whether or not you take out a payday loan depends on your situation. In some cases, it makes good sense, but in other cases you’ve got better options to consider.…

The nation’s poor economy including the high unemployment rate, has more consumers than ever considering payday loans. The loans can be a way to bridge the gap and getting bills paid prior to the next payday.

However, you have to think about the fees, the high interest rates and the punitive late fees. That’s one reason why many state assemblies are proposing legislation that is designed to lower the fees and cap the interest rates payday loan firms charge their customers.

If you need to obtain a payday loan and want to use it responsibly and not spend an excessive amount in fees and penalties, follow these three steps:

Emergency use- Only use payday loans for true emergencies. If your gas bill is already late or you need gas in your car and the next check isn’t for two weeks, a payday loan might be the right choice. Resist using payday loans for a two day vacation or one hour shopping spree. Only use payday loans for essential, emergency items and situations.

Understand the charges – Always get the fees and interest rate up front and in writing. If you can’t get it in writing, go to someone else. Avoid any surprises.

On time payments – Make every deadline when it comes to paying back your loan. It’s a fast route to financial disaster if you don’t. Many payday lenders charge excessive penalties and late fees when payments are missed. You want to avoid falling into this situation

If you follow these three tips, you should be able to manage your payday loan.…

In a world where every dollar counts, not making the right choices while using your credit card may hit you hard on your wallet. Irrespective of the fact that you’re going through a credit crunch, the different credit card offers in your mailbox may seem to be an answer to all your prayers. Though getting a new credit card may be a sparkling idea for about 24 hours, but in a way to clean up your distressed finances, borrowing money to repay money is not the solution that you must resort to. Experts suggest that committing too many credit card mistakes may get you trapped in the vicious cycle of debt. Though credit card consolidation options are there to assist you in coming out of debt, yet it is better to take some precautionary measures to stay safe. Following the advice recommended by the financial experts may help you steer away from the most common credit card mistakes. Have a look at some of them. In addition, you can visit DebtConsolidationCare.com for more info.

Mistake No. 1: Placing your hands on too many credit cards
Effect and solution: If you bypass the suggestion of the credit card experts, you could make one of the biggest credit card mistakes, that of letting your hands on too many cards. As you get your first credit card, it is imperative to ask yourself whether or not you need another card. Reports suggest that more than 90% of Americans don’t need another credit card, if they use the first one perfectly. You must know when to stop and that having too many credit cards is not a good thing. You will be digging yourself deeper into the credit card debt hole by shopping with all your cards simultaneously.

Mistake No.2: Not shopping around before choosing a card
Effect and solution: According to most financial experts, one must make a comprehensive market research and check the interest rates of the cards that are being lent by all the other credit card companies. The most important thing to note here is the interest rate on the unsolicited offers. If you’re going through a financial crunch, it is most likely that you will be charged high rates and unaffordable terms and conditions on the cards. Therefore, rate shopping is a must.

Mistake No.3: Using credit for cash whenever you go shopping
Effect and solution: If you’re living a life from paycheck to paycheck and your finances are clogged, you must never prefer to whip out the plastic whenever you go shopping. The more you purchase things by borrowing, the more you have to repay with interest rates. Instead, form a habit of making everyday purchases using cash so that you can stop shopping as soon as you exhaust your dollars. Or else you may find yourself paying off the debt long after you’ve consumed your goods.

Mistake No.4: Making the minimum monthly payments only
Effect and solution: You will often find banks and financial institutions asking you to make the minimum monthly payments only. Don’t follow this advice as they will be pleading you for their own benefit. If you make the minimum monthly payments on your credit cards, you’ll have to be in debt for a longer period of time and thus you’ll be accruing more interest rates with time. Save enough money so that can make some added payments in excess of the minimum monthly payments on all your cards. Go into a budgeting mode to manage your payments.

With the proliferation of credit cards in daily life, there has also been a simultaneous rise in the number of people who commit credit card mistakes. This is the primary reason for the number of defaults and the surging national debt burden. No amount of help from the credit card consolidation companies can help the debtors get back on track. Therefore, take a measured and informed decision while handling your cards so that you may stay away from debt.…

Undoubtedly, the internet has made the world a lot simpler and opened boundless frontiers, especially for the economy. Although America is credited with inventing this technology, not all Americans have access to broadband.

A report issued by the Federal Communications Commission estimates that around 100 million Americans do not have access to the internet. Of this at least 25 percent are located in rural areas that do not have high-speed broadband coverage. The commission asserts that these underserved regions are cut off from internet-based jobs and other economic opportunities.

The FCC also noted that around 30 percent of the population with internet accessibility — roughly 100 million Americans — do not subscribe to broadband connections due to high cost, privacy concerns and poor digital literacy.

Lack of internet access is significantly pronounced among minorities, seniors, Hispanics, African Americans and indigents. Quite alarming is the poor internet connectivity of many schools and libraries. This alone limits the access of many Americans to high-speed internet access.

Proper coordination and partnership of FCC and the private sector is crucial in increasing the nationwide accessibility of the internet, according to the report.

On a global scale, America ranked 20th in terms of broadband accessibility. The woeful performance of America is comparably lower than the rest of the world. In fact, only 60% of the US population has access to a high speed internet connection. South Korea tops the world ranking with 95% broadband household penetration. Included in the top ten are the Netherlands and Norway.

The report emphasized that nationwide internet connection can help invigorate the economy by providing online jobs to millions of Americans. In 4G wireless technology alone, 200,000 jobs await potential workers.

The rapidly growing “apps economy” remains an untouched source of employment and economic possibilities. Today, there are thousands of companies, developers and private investors treading the way of this bountiful economic opportunity. FCC is optimistic that extending broadband access can uplift the economy from its recession state.

Similarly, private investors and companies are shelling out billions in expanding broadband coverage, improving next-generation internet services and increasing internet connection speed.

On the part of the government, the Telecommunications Act of 1996 mandates the FCC to hasten measures of accelerating broadband accessibility across the country. The agency is currently spearheading aggressive actions to increase internet connectivity and make America globally competitive.…