Payday loans: High interest loans meeting the short term needs of borrowers

Payday loans are emergency loans which are mostly taken to cover the short term loan requirements. The term for which payday loans are taken ranges from 6 days to 120 days depending upon the state where you are taking the loan. For example, for the State of Arkansas the minimum and the maximum time for which the loan can be taken is 6 days and 31 days respectively while for the State of Illinois, the minimum and the maximum time limit is 13 and 120 days. This means that if the loan duration exceeds 120 days, the loans can no more considered a payday loan. The State laws also prescribe a maximum amount which can be borrowed under payday loans. This upper limit also varies from State to State. While it is $500 for most states in US, it is $700 for Washington and $1000 for Washington D.C. and Idaho. Moreover, the minimum interest that is charged by most of the payday loan companies is about 390% but there is no upper limit prescribed.

Whenever you apply for a payday loan, the loan company asks for your authorization which allows them to withdraw money from your checking account. Moreover they may also ask you for post-dated checks or may even ask you to sign a “wage assignment” agreement which allows them to garnish 15% of your wages directly from your paycheck. The maximum amount that you can borrow under payday loan is lesser of 25% of your gross monthly income or $1000.

Since payday loans come with a very high interest rate, there is every possibility that you may default on your payments and become delinquent. The delinquent accounts can be reported in your credit report just like other loans, and your credit score may get lowered. So one should always try and repay the payday loans as early as possible. These high interest loans can also put you to vicious circle of debt and you may fall in a debt trap. However, if you cannot repay a payday loan, it will not be considered a criminal offence and the creditor cannot initiate criminal proceeding against you. All that the creditor can do is to sue you to the court and bring judgement against you to recover the debt either by garnishing your wage or your bank account.

Now-a-days however, the payday loan companies provide repayment plans to help you pay off your debt. If you are not able to pay off the debt you can call up the payday loan company and set up a repayment plan and pay it off. This will help you to save on your late payments and other financial charges.

Once you decided to get additional heath insurance coverage, do not rush things and get a private health insurance quote from each company, to see who has the cheapest and best the best insurance.

I am sure you would like to check some really good sources on payday loans.

• Payday Loans – Apply for fast payday loans up to $1500 In 30 minutes. Quick cash advance online with no faxing required.
• One hour payday loan – The are perfect for those who need to get fast cash, but also will pay it back in a short amount of time. The best way to pick out a 1 hour payday loan / cash advance is to do your homework.
• www.easyratesavings.com is the last stop for affordable auto insurance rate. Here you will get cheapest auto insurance rate that will suit your budget.