Why should you not opt for payday loans?

Ed. note: This is a guest post by Kevin Craig is writing a guest post. I hope you enjoy his post.)


Payday loans are really expensive

Payday loans are able to satisfy the needs of the people but the borrower has to repay the loan on the basis of the coming payday. These cash advances are in fact very expensive to the people, and so people are obliged to repay the loan on the coming payday. For getting the payday loan the lender needs to have the check of the borrower's account to maintain the security of the loan. These loans are highly expensive than the other types of loans especially the cash loans. These types of loans are also known as costly cash.

Payday loans become more costly when you are not able to pay in time

If you extent your repayment plan or unable to pay back within the due date, payday loans become more expensive. IF you extend your loan for another 14 days, you end up paying half of the principal amount as interest.

A Payday Loan Company can file a Judgment against You

Depending on how large a debt one has, the payday loan lender could decide to file a law suit against you at any point of time although it is a part of the unsecured debt! If the company is able to get a judgment one could be forced to even pay back the money through bank account levies, wage garnishment, or property liens. One should keep in mind that each state has different laws regarding this and several has laws that even force payday loan companies to set up installment payment plans with their clients. So while it’s true that a payday loan company can file a judgment, it really never comes to that point!

Can one get rid of Judgment?

The easiest way to do this is to simply get in contact with the payday loan lender before the first default. By talking to the payday loan company first, one can work out some sort of arrangement with them before they can even send the debt to a collection agency. At some point, the lender will give up trying to make money off you and will just want their money back. Most people are able to work out a payment plan where they pay the loan back in installments, but even if the lender is unwilling to negotiate a plan, they will at least know that every effort has been made to pay the loan back and will be less likely to file a judgment.

Better Business Bureau’s (BBB) recent warnings against onlinepayday lender scams

BBB reported that hundreds of people complained to it against few online payday loan providers like United Cash Loans, OnceClickCash.com, rbtloans.com, 500Fastcash.com, Ace Cash Services and Ameriloan. People accused of these companies that once they have signed up for one time payday loan and provided their bank account information. All the subsequent payments were counted as finance charges, leaving the principal amount unpaid. BBB also reported that some consumers paid 3-7 times of the original loan amount and interest as high as 547%.

You can look for BBB reliability reports for free at http://upstatesc.bbb.org.

If anyone still goes for payday loan, is payday loan debt settlement the best option?

A pay day loan can be obtained online and with no credit check. Bad credit will not disqualify one from qualifying for a pay day loan. One can use the money for what ever purpose necessary and the money can often be deposited into the checking account the very same day. All one needs is a checking account, and a steady source of income to get up to $1000 dollars or more deposited directly into the checking account. There are no other fees or charges incurred no penalties for early repayment, loan extension guaranteed and also loan is delivered on the very same day.

Alternatives to Payday Loans

When there is a need for credit one should look for other options other than payday loans:

One can consider a small loan from the following sources

• credit union
• A small loan company
• An advance on pay from the employer
• Family or friends (borrow)

Book Giveaway

Recently, I reviewed Why Smart people Make Big Money Mistakes by Belsky and Gilovich. A very interesting book. If you haven't already, read the review and comment below for a chance to win one of three copies (provided by Simon & Schuster) that I will be giving here in a random drawing.

To enter leave a comment below. Please include in the comment your email address.

The 3 winners will be chosen randomly using Randomizer.org.

Remember there are three (3) chances to win. So leave a comment and then refer your friends to enter for a chance to. Don't forget to include you email address.

Winners chosen March 15.

Why Smart People Make Big Money Mistakes (Belsky and Gilovich)

Why do we make such huge money mistakes? That is the question asked in, "Why Smart People Make Big Money Mistakes...and How To Correct Them," by Gary Belsky and Thomas Gilovich.

The biggest part of the problem is behavioral economics. That is how we treat one dollar differently depending on the value we put on it. This was illustrated perfectly in the "Legend of The Man in The Green Bathrobe." Simply put, we divide money into mental accounts based on:

Where it comes from

Where it is kept

How it is spent

This tendency to value some dollars less then others, and thus waste them. In the case, referred to in the legend, mental accounting, allowed him to think of the 7.5 million dollars he lost, as the house's money, rather then his own. Simple fact is, he turned $5 into $7.5 million at the roulette table and then lost it. However in his mind, he didn't lose the 7.5 million, only the $5. All, because he put less of a value on the winnings, that he kept on the table.

So why do we put less of a value on some portions of our money then others? That is one thing that this book seeks to address.

Warning Signs

You don't think you're a reckless spender, but you have trouble saving.

You have savings in the bank and revolving balances on your credit cards.

you're more likely to splurge w/ a tax refund than with savings.

You seem to spend more money when you use credit cards than when you use cash.

Most of your retirement savings are in fixed-income or other conservative investments.

We MUST stop this mental accounting. This includes, cutting up the credit cards and quit gambling.

This problem (mental accounting) is what is wrong with most American's finances. It is why they don't have savings and are into debt up to their eyeballs. Even if we have savings, we continue to borrow more. Wasting those dollars that we pay in interest.

Look! It doesn't matter if it's found money (gifts, inheritance, tax refund, etc) or earned. It's still money. Thus we must treat it the same. Saving not squandering it. Likewise, we must stop thinking of credit as income. Yes, as crazy as that sounds, that is what many Americans are doing. We live off credit cards. If we get a new credit card or an extension on those cards, subconsciously, we think we have more money to spend and run out and purchase something, even though we can't afford to pay for it in cash.

I encourage you to pick up a copy of this book today. Visit your local library or bookstore for a copy of this book today (or use the Amazon.com link above).

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Look for the upcoming book giveaway, in an upcoming post.

Free Haircut

Today I went to get my hair cut. I had a coupon for a FREE haircut for first time customers, so I thought, why not try out this place called Sports Clips. When I was seated in the chair. I was told that since, I was a first time customer that I qualified for the MVP treatment. It includes your standard haircut and a massaging shampoo, steamed towel, conditioner, and a neck and shoulder massage. She said that since, I had the "FREE" Coupon that this was free to.


I wouldn't be the Prince of Thrift, if I didn't accept the freebies. The thing, I want to know is how much will they charge, when and if I become a paying customer. I can't seem to find this information? Why is it something that they try to hide?

Another Debt Bites The Dust

If you missed my posts on Twitter and Facebook on Tuesday, I would like to announce: my car is now 100% mine. I made the last payment for the "Thrifty Mobile" of $99.98 on Tuesday. Meaning, I no longer have a car payment and will soon have that car title in my hand.

Undercover Boss

The last couple of weeks, there has been a new show on TV called, (ta ta DA) Undercover Boss. No, it's not a superhero show, rather a show that has the head of a major corporation, stepping down to go to several locations in the company. Not as the President or Chief Operating Officer (COO). Instead they arrive at each location, under an assumed name and work for that day as a new hire.

Both, weeks, one of the job sites ended up firing the respective head of the company. The first week the COO. of Waste Management was the Undercover Boss. This past Sunday, it was the President and CEO of Hooters International Tonight, it will be the head of 7-11). Both bosses said they learned a lot from their employees (and employees of the franchises) by looking at their companies from a different perspective then they had previously.

Imagine now, what if your boss went undercover. What do you think they might change in your workplace, if they seen it from a different perspective? Would they get fired from one of the positions they held over the course of the week?