Month: June 2016

When a borrower takes a $400 payday loan, he still has to pay the huge interest rate that comes with it. This is despite the crackdown on rules that are prevailing in the payday loan industry in Australia. These rules are set to create some protection to borrowers who are in need of a payday loan. These rules could then also eliminate some deceptive moves of the lenders that would entice the borrower to file for more direct lender loans than they actually need.

However, the application of these rules may seem easier said than done as some of these rules have already been rejected by authorities.

These payday loans have been experiencing a rise in popularity and in need since more and more Australians are having financial problems every year. There seems to be no end regarding this matter and if this trend continues, more Australians will try to apply for a same day loan in the years to come.

The thing about payday lenders is that they actually create more needs for borrowers to borrow again and again from them. Some of them have come up with other products that are set to raise the interest of cash loans higher than the usual.

To this day, there are a lot of Australians who are tied up with so many payday loans. Some of the rules that are set to be applied are meant to protect the borrowers so that they will not fall victim to other unnecessary loans that will be offered to them.

Make no mistake about it that payday loans are good for the short term only. However, if lenders succeed in enticing the borrower to borrow more, in effect it becomes a high acceptance rate loan at a very high interest rate. Add that to the fact that the lender has direct access to the borrowers’ bank account.

With the rules being set up, there is no reason to believe that the industry will suffer because of it. The reason for this is that there are so many Australians who are in need of it and that they will always have this as their number one option to borrow money since there is no limitations that will stop them from filing. Even the rules that are going to be applied are not designed to stop them from filing. Nor are these to be put into place to make it difficult for them to avail of a payday. It will be there to protect them from spiraling out of control with regards to their borrowing.

If you find it difficult to borrow money because you have a bad credit history, consider applying for a no credit check loan.

Australians will always find the need to file for one and this is exactly what will keep the industry thriving and growing in the years to come.

So the thing is that payday loans are okay but it is important to limit yourself to how much you can realistically pay off with your next paycheck. If you can only pay for one payday loan, that should be your limit. Our company actually applies all of these rules to our borrowers. It is important to us that we offer only what the borrower needs because we are in this business to help them and not create more problems for them.

https://theintercept.com/2016/06/02/new-payday-loan-rules-wont-stop-predatory-lenders/

One of the things that is happening today is that the internet is now a washed by online payday loan lenders. It is their way of attracting clients to avail of this short term loan to answer all of their financial concerns in the present time. Aside from this, it could also provide a better way of acquiring a 100% acceptance rate loan without being taken advantaged of by lenders.

These short term loans go by amounts that are in the lower thousands of AUS dollars and must be paid in a few weeks during the time that a borrower is set to receive his salary or any other form of income. The only purpose of this payday loan is to help the borrower make ends meet until he gets his next salary. The loan usually costs about $15 AUS for every $100 borrowed. This amount is not dependent on the time period agreed upon to be paid by the lender and borrower.

Here in Australia, people are starting to look into this type of personal loan as a way to make a quick buck that can be availed without the inconvenience if having to go through a background investigation. Here is where it gets interesting. The borrower will have to give complete authority to the lender with regards to their bank accounts. This move s set to protect the lender that he will get his money back when the borrower gets his next paycheck. This means that when the loan is due, the lenders can just withdraw the amount that the borrower owes them.

Lately here in Australia, payday loans have become a very popular way of helping Australians make ends meet. But the only thing going against payday loans is their high interest rates. If a borrower computes it properly, a whole year loan can run up to 400% interest rate.

What is the difference between working with a broker and receiving a loan no brokers? A broker can potentially hook you up with a lender if you are finding it difficult to find a direct lender willing to let you borrow money.

Our company has been providing payday loans amounting to $4000 AUS to borrowers who do not have the requisites to file for cash loans. What we do is that we try to offer them their best option specifically with short-term loans.

The truth is that our company knows that payday loan applicants and approvals have more than tripled last year. The fact is that the increase in numbers showed that there was 227 percent growth in borrowers in 2015 compared to the preceding year. This statistic is backed by another research where lenders lent $667 million AUS in 2015 to borrowers in need of short term solutions to their financial problems.

The high season for pensioner loans fall around Christmas time when a most Australians will have to spend a lot of dollars on shopping for gifts and food. The reason for this is that those who do not have credit cards simply opt for payday loans to tide them through.

On the average, Australians have been taking $502 payday loans which they are able to pay back in about 117 days. It is expected that the payday loan industry will expand to record highs in the years to come.

 

References:

http://www.huffingtonpost.com/jack-m-guttentag/payday-loans-the-worst-ab_b_9744896.html

http://foresters.org.au/news/more-research-confirms-payday-loans-on-the-rise-nar-68

$1 Billion AUS is the amount of new loans that Australians are expected to acquire year after year. This number could still rise in the years to come. This is just one proof that a lot of Australian households are falling under the distressed household category and these households that fallen vulnerable into the trap of payday loans lenders.

However, even if there have been warnings about these lenders, still the number of borrowers are still increasing by the day. Thousands and thousands of Australians still file their applications for a payday loan because they see this as the immediate answer to their short-term financial needs and problems. The truth is it is. There is no arguing with that.

Do you have bad credit but still wish to borrow money? Apply today for a no credit check loan with Perfect Payday. It only takes minutes to apply and you will receive a quick decision on your application.

But with everything being played out by both lenders and borrowers, there is a chance that Australian loans will go beyond the $1 Billion AUS mark by 2018. And from then on this amount just might keep on growing.

It seems good business for lenders. It definitely is. But the thing about it is that borrowers might not be able to handle the high interest rate of this type of cash loan. If properly computed, the interest rate would be comparable to a 50 percent rate out of a regular loan. And since Australians are looking at payday loans as the answer to their short term financial problems, some of them might be enticed to take in more payday loans than just one.

These same day loans have seen an increase at a rate never been seen before in Australia. The thing is that this type of loan has been in the eyes of a wide range of borrowers. These short term loans were once the stranglehold of those classified as financially distressed households – these are the people who cannot get their hands on a regular loan. However, in the recent past, even those qualified to take out a regular loan are starting to look into payday loans as an option for them.

How fast can you get a loan if you need one? Instant cash loans are available for people who have a job, even if they have bad credit. Apply today with Perfect Payday if you need a quick loan.

These are the people, who fall under the financially stressed household category, have the thinking that the reason why they are considering a short term loan is that they just simply need to borrow some money for a while and that their financial issues will disappear after a short while. A lot of this belief has to do with the lenders marketing arms. They have created a need in which those who do not actually need to borrow a direct lender loan now see that they actually need to get one. Eventually, these borrowers might end up becoming a repeat borrower because the marketers will try and find another reason for them to borrow more payday loans.

This fact is backstopped by the fact that borrowers today take in an average of close to four payday loans in a year. The reason for this is that a lot of first-time borrowers have become repeat borrowers already. And this is the main reason why this industry is thriving at the moment and in the years to come.

If you are cash strapped or face with an urgent financial emergency, it seems that borrowing a small sum of money as a cash loan for a short span of time seems like a very good solution. But, before you take the bait and take on that payday loan, make sure you read this article.

Top Things To Consider Before You Take That Plunge

1. Interest rates can get sky high.

You have to know that alternative payday lenders can have an APR or Annual Percentage Rate as high as 5000%! The money comes fast, but the repayments can be a total nightmare for anyone.

2. They will have access to your bank accounts.

Based on our firsthand experience, many lenders collect repayments off of your debit or credit card. They have the authority to take payments from your bank without having the need to ask your permission for it.

3. Know that you can always cancel payments.

You have all the right to cancel payments. If your bank makes any payments right after you cancel, ask them for a refund.

4. Ask loan help from your parents or relatives.

Before you take on a payday loan, ask first your parents or relatives if they can help you. Perhaps, they can share their money with you and you can pay them back in installments.

5. Payday loans are to be repaid in a very short span of time.

Drawing from our experience, Payday loans are easy to borrow, but you have to pay them back in the next pay day. Many borrowers fail to pay in time, and so their loans earn interest. Many of them take out another pensioner loan just to repay their existing loans, and the vicious cycle goes on, and on.

6. Do some research first and look somewhere else.

Do your research; you have to know exactly how much you will pay back in entirety before you get a same day loan. Many lenders have payday loan calculator, check on each. Some lenders deceive borrowers into lending without showing how much they will have to pay eventually. Do not fall prey.

7. If you do not pay, expect to be harassed, intimidated, and pestered by payday loan collectors.

This is a sad reality when it comes to payday loans collection. Do not be a subject of their intimidation and stay free of stress by repaying your loans and or avoiding payday loans altogether. Or expect to be bombarded by many calls every day, sometimes around 15 times a day!

What are brokers? They help introduce you to people who are willing to lend money to you. There are two options when getting a loan, either working with a direct lender, which is considered a no broker loan, or using a broker to help introduce you to these direct lenders.

8. Fast loans are easy, but expect poor customer services.

As indicated by our tests, loans may be granted in as fast as 5-10 minutes. But the office of the Financial Ombudsman said they receive over fifty complaints about payday concerns each month. Several complaints are about money taken off their credit or debit cards without their approval, or the unfairness as well as very poor customer services.

Paying off credit cards in a timely manner will build your credit so that you can more easily borrow money. If you find yourself unable to borrow through conventional methods because you have a bad credit history, consider applying for a no credit check loan.

Once a borrower is unable to pay back, the office of Fair Trading says lenders have the following recourse – freeze the charges or provide another repayment plan. If you can’t pay your loan in full, ask your lender what they can do for you.