Money is the foremost need in today's fast paced life. Every person in this world cannot always have sufficient money with him. You might face a situation where you would find yourself running short of sufficient money with him always. Those times in your life put you into a confusing situation and you generally would make a decision to postpone your needs and requirements at that point of time until you have enough cash in hand to cope with the problem. Therefore personal loans are especially designed to save people from facing such situations.

The finance is usually meant to meet your personal requirements. But there is nothing specific as such as the borrower can also avail this loans for any legal reason as well. It is also not required to specify the reason to the lending authorities. These loans are generally categorized into two categories i.e. secured personal loans and unsecured personal loans. In case of secured loans you are required to place your asset as a security and that might be in the form of home, land, car or any other valuable property. This security serves as a guarantee to the lender against the loan amount that is granted. The lenders charge a reasonable rate of interest in case of these loans and the repayment period also extends to a longer time period. Thus this policy ensures that the lender does not face any problems to repay back the loan amount.

Where as, in case of unsecured personal loans the borrower can obtain it without getting into much of legal hassles. The finance also does not require any kind of pledged security and thus it carries a bit of higher rate of interest as compared to the secured type of loans. Moreover these loans are also the most feasible option for those who do not want to risk their property for obtaining the finance. These loans are also a well suited option for those who have a poor credit history.

William Black has no formal degree in finance, but years of work that he has put in the finance industry makes him perfectly eligible to be called an expert in financial matters. To find personal loans, Debt loans, bad credit loans, unsecured loans, secured loans visit http://www.infoaboutloans.co.uk/

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Payday loans have been around ever since there were people with money to loan and people who wanted to borrow money. Sometimes they were called loan sharks, sometimes pawn brokers and today they are called payday loan stores.

Paycheck loans are unsecured, short term, and typically are not greater than $1500 and usually much less. The payday loan is designed to tide a person over when their money runs out before their paycheck arrives. Consequently these loans are for 7 to 14 days.

If an unexpected bill hits before payday, people with good credit simply put it on their credit card. If you don't have credit, or you have bad credit, and you don't have the cash, how is that bill paid? If it wasn't for payday loans, that bill wouldn't be paid. If the loans are providing a valuable service, why then do some people call them a rip off?

When a person is charged over 500% APR for a loan, many people will call it a rip off. Consumer advocates say the rates charged are usurious and unsupported. The industry says it needs the rates to cover the 25% default rate and the cost of running businesses in depressed areas. As a practical matter, a payday loan can cost $30 for every $100 borrowed. Couple this high rate with the fact that most of the payday loan locations are in poor neighborhoods, and it would appear that they are predatory lenders.

How do payday loan companies get away with such high interest rates? Who would agree to those kinds of terms? 83% of the payday shops are located within 1/4 mile of distressed communities. Compare that to 51% of credit unions and only 34% of banks. Payday loans can charge that kind of interest because nobody else is serving that community.

The poor in this country are sometimes referred to as the unbanked. That is to say the banking industry does little to provide them with the same services as they do wealthier consumers.

Conventional banks are not competing for this lucrative lending market, yet. The loan amounts are too small and the turn around is too short. Also payday loan companies have made applying and approval exceptionally easy compared to a bank application and approval process. With a payday loan the applicant simply has to verify his ID, have a checking account, and have proof of employment. Applications are usually approved same day and the funds are wired to the applicant's bank the next day.

Payday loan customers don't see the loans as a rip off. Firstly, where else can a person with bad credit get a loan to cover emergency needs? Secondly, payday loan customers don't view the loans as an everyday resource but one that they will only use rarely. It's like buying a $4 cup of coffee in an airport knowing you can get it for $1.50 at McDonalds but you're trapped in the airport. You want the coffee so you buy it. Paying $60 two weeks from now in order to get $200 today so you can pay the utility bill is just the cost of doing business.

With unemployment nearly at 10%, payday loans are now tapping into a new market via the internet. Scores of payday loan companies are now reaching the formerly good credit customers who now find that there credit has taken a dive and are unable to obtain conventional lending. Online loans work the same way as the shop loans and are fast, convenient and offer the financial support that is not available otherwise.

If you find yourself in this "new" market category and you are considering using a payday loan make sure you do your research. Interest rates between companies will probably not be different because they will charge the most allowed by your state law. The place to look for differences is in service fees and features. Read the terms and conditions carefully and fully understand the consequences of not paying the loan back on time. Make sure you can afford the loan.

Chris Smith reports on consumer credit and personal finance issues. If you would like to browse the rest of his articles on payday loans, credit repair, bankruptcy, budgets and much more, visit http://trycreditfix.com

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This is an absolutely terrible situation to be in. You originally had a financial emergency, took care of that, and one week to a month later, "I can't pay my payday loans back!". Sadly this happens much more often than most believe.

As soon as you realize you won't be able to pay you'll need to contact the company and try to talk to them about a possible payment plan. Explain your situation to them and if they're not helpful ask to speak to a manger and try with them. Make it clear that you do want to pay them and get out of this mess, but your finances didn't turn out as you were hoping.

Typically, because they have a lot of delinquent accounts and other reasons, these companies will often not report you to the normal credit agencies. They'll report you on teletrack, a system used largely by other payday lenders, and will be very aggressive in calling you multiple times at home and work.

No matter what they say, this is considered a civil matter, so while they can sue you, you will not be arrested.

Every state has different rules for payday loans. In some states they are required to set up payment with you. You'll want to become familiar with your state's rules.

For this reason and for help setting up your financial plan from here, you'll want to immediately contact a financial counselor. There are many non profit credit counseling agencies that can help you safely get out of debt.

If you have multiple payday loans they may advice you to look into debt consolidation loans to make the debt more manageable.

Depending on your particular situation you may also consider getting another job, probably short term. You can check local classifieds for things like cleaning offices on weekends of mowing lawns. If you have made any recent large purchases you could still return for the cash I would look into that as well.

Most importantly, get a credit counselor and do not take any major actions until you do especially obtaining another payday loan. You don't ever want to be realizing "I can't pay back my payday loans!" again.

For more information on payday loans visit Same Day Payday Loans, or for information on top debt consolidation loans visit Unsecured Debt Consolidation Loans

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