HOW TO SHOP FOR A PAYDAY LOAN

You wouldn’t consider buying a new pair of shoes, a bicycle helmet, or an extra pair of jeans without trying them on first to make certain they fit. After all, a pair of shoes that is two sizes too small will never fit and they amount to money wasted. Shopping for anything – products or services – is pretty much the same. The smart consumer does some research, tries a few on for size and makes sure that the purchase ultimately meets his or her needs in a variety of ways.

Finding the right payday loan to fit your needs is essential. You don’t want to end up paying $50 in loan fees for something you could have gotten for $20 from another lender. And, just as shoes come in all sizes, shapes and colors, there are numerous variables associated with payday loans – items like the amount of time you have to pay back the full amount, the loan fees that are involved, and whether or not the lender will allow you to roll the loan over if you can’t pay it back on time and how much that will cost.

Repayment Times - When you are searching for a payday loan, you need to examine how long the lender allows for the loan to be repaid. Time is a major factor to consider. For example, you just had a major car breakdown and it will cost $500 to fix it. You just got paid last week and don’t get paid again for another 25 days. You have already paid all of your regular bills and have just enough money left to feed your family for the rest of the month until payday rolls around again. You know that you could pay to have the car fixed on your next payday, because you have fewer standing obligations to meet with that check, but in the meantime, you have to get the car repaired immediately so you can get back and forth to work. There are dozens of payday lenders to choose from, but about half of them only loan money for 14 days maximum. That doesn’t do you much good, since your payday is 25 days away. Therefore, you need to consider only those payday lenders who can make loan arrangements extending out 30 days. That gives you time to get your paycheck and pay back the loan on or before the due date.

Loan Cost – A survey of Internet payday loan websites reveals that the average loan cost is $25 per $100 borrowed. At this rate, an individual borrowing $500 would actually pay the lender $625 (the amount loaned, plus loan costs) at the end of the loan period. There are a few sites that advertise loan costs as low as $10 per $100 borrowed, in which case the total cost for borrowing $500 would be $550. However, some lenders disguise their actual fees by quoting a rate per $100 and tacking on an additional fee as well. For example, a fee of $25 per hundred, with a $10 additional fee, actually amounts to $35 per $100 borrowed, for a total cost of $675 for a $500 loan. Borrowers should carefully examine the stated loan costs and any fine print that identifies additional fees carefully before entering into a loan agreement with a lender. Be aware that, if your bank account does not contain sufficient funds when the lender attempts to withdraw the amount you agreed to pay, the lender can also charge bounced check fees, which range from $15 to $30. The good news is that increasing numbers of lenders doing business on the web has resulted in some very competitive payday loan terms being available. But, remember to shop around and find a good fit.

Borrowed Amount – The amount that you can borrow from an individual lender is also a factor that needs to come into play in your decision regarding which loan to take. Some lenders loan up to $1,000, $1,200, or even $1,500, depending on the size of your monthly income. Others may only lend up to $500 and, in fact, the average size loan made from Internet payday lenders is $500. How much you apply for should relate directly to how much you absolutely need and how much you can afford to pay back without having to roll the loan over and incur additional loan fees.

Reputable lenders – One of the most important things to consider when shopping for a payday loan is the reputation of the lender. Investigate online and see which sites are recommended most frequently. If a lender is not licensed to make loans in the state where the business is situated, that can be a warning sign that the business is not the most reputable. Remember, if you get an online loan, you are going to be giving this entity your account numbers and you don’t want to give that kind of access to a business that doesn’t have a good track record already established.

Ultimately, payday loans can serve an excellent purpose in an emergency situation, especially for those who don’t have a good credit record or haven’t used credit before and don’t have a credit rating. However, just like everything else you shop for, make sure you get the right loan for your situation and circumstances.

About The Author

Max Hunter is the author of many credit related articles. If you are looking for help with Payday loan or any type of faxless loans please visit us at http://www.PaydayLoanChoice.com.

When the Virginia House of Delegates voted bipartisan, 55 to 39, to cap the interest rate on payday loans at 72 percent APR, Del. R. Lee Ware Jr., a Republican from Powhatan, pulled his bill so that no further debate would continue in the public square on HB2563.

If Ware's disrespect for the public and for his own colleagues in the General Assembly was not enough, the gentleman further confounds the people and his political party when he comments on the 72 percent APR cap and says, "You can't make payroll on that kind of return." Since when does the Virginia legislature have the responsibility of being the nanny for businesses and have the responsibility of underwriting the payrolls of the payday loan industry?

From this businessman's perspective, proudly operating in a pro-business state, the General Assembly has absolutely no business promoting and promulgating usury and assisting a morally bankrupt industry in meeting its payroll.

Ward R. Scull III

Newport News n

Marshall's tactics

Reference "College of William and Mary controversy: Capitol and the cross," Feb. 9. Who is this wannabe "Little King" Del. Robert Marshall? Centuries ago his type would be shouting "off with his head" - meaning the president of William and Mary, Gene Nichol's head. Since Marshall doesn't rule a kingdom these days, all he can do is toss in a budget amendment that would eliminate Nichol's state salary for the year, or else.

Intimidation of the worst kind, but the kind you might expect from the extreme religious right, of which Marshall is a card-carrying member. "My way or the highway" is his motto. Would you please publish the names of those other 35 who voted with him to dispose of Nichol's salary? I'd be especially interested if any of those 35 reside around here. Thank you.

Hugo Luoto

Newport News

Insatiable taxes

Our state and local politicians seem to be taking the term "commonwealth of Virginia" a bit too seriously with their insatiable hunger for more taxes. The Newport News City Council seems bent on bleeding homeowners dry with property tax hikes. And now state leaders want everyone to pay more taxes to fund their neglectful practices regarding transportation - all the while patting themselves on the back and voting for raises, no doubt.

Bernard Evans

Newport News

Equally credible

Reference the letter "Protest coverage," Feb. 9, decrying the lack of coverage for a previous rally in Washington, D.C, of groups opposing abortion rights. In that letter the implication was made that a group of theological scholars representing Christianity, Judaism and Islam supported the rally and that they have more credibility than Jane Fonda.

When one considers that most theological reasoning occurred in a former age in which best thought was that a woman's body was nothing more than a host for nurturing a man's implanted seed, and that the advanced education of most theologians equips them best for debating the number of angels (or jinns) that can dance on a pinhead, one need not wonder why none of these learned men can explain why God would invest a living soul into a bolus of pre-natal tissue when, in his omniscience, he knows that an infant will not be born.

The learned theologians have no more standing in this debate than any other thoughtful person, even Jane Fonda.

Leo Staton

Williamsburg
Taxes from profits

I have been hearing and reading that Exxon made about a $40 billion profit. What I have not heard is if this was before or after taxes and in either case what tax is to be paid. A cynic like myself is of the opinion that the media would rather not say anything good about profits.

J.B. Lankes

Newport News

Independent Obama

What about Sen. Barack Obama? Obama announced his candidacy for president in Springfield, Ill. Al Sharpton and Jesse Jackson were disappointed that he didn't make his announcement at Hampton University during the State of the Black Union symposium last weekend ("Obama's dreams stir interest at HU event," Feb. 11).

Sharpton and Jackson cannot speak for Obama or run his campaign. Since he is the senator from Illinois, he made his announcement in Illinois - his choice. He had no obligation to announce at HU, and no one, including Tavis Smiley, should apologize for him. One speaker noted that, "Obama might have fallen down today but we'll help him get up again." How so? He announced his candidacy to the people who elected him to the Senate. Many of the doubtful black Americans suggested that by not being the descendant of slaves, he might have difficulty relating to black Americans and carrying their votes. Bill Clinton was not a descendent of slaves, but according to many black Americans, he had no problems relating to them.

If you run for president, you should be able to relate to all Americans. What was this article really about? People being misinformed by so-called "leaders" who should know better. Speak with your own voice, listen to all the candidates, do some research, check their voting records and vote. Game on!

J.Y. Teasley

Newport News

Flawed Iraq plan

The "new way forward" in Iraq is a desperate gamble that is fatally flawed.

Fatal flaw No. 1 is that deployment of our troops will take from four to six months. Piecemeal commitment of forces sets the stage for them to be weakened by losses before the next group arrives. No way, then, can the full impact of 17,500 additional troops into Baghdad ever be realized.

Fatal flaw No. 2 is that the Iraqi army is to provide a multiple of our 17,500. Yet, in the past, Iraqi soldiers either went AWOL or the promised units never arrived at all. All of that adds up to one tragedy, but that's not all.

This plan is presented as one developed by the generals. Who knows whether Gen. David Petraeus had a voice in it or was it handed to him to execute? In any event, who gets the blame if it does not succeed? Not Bush/Cheney, that's for sure.

Incompetent generals can be replaced. We can get a new commander in chief only through resignation or removal from office. None of that will restore the lives of our brave soldiers killed during this operation. That's the greatest tragedy of all.

Joseph K. Taylor

Yorktown

Ruinous growth

In spite of the frequent warnings from the Daily Press that growth for this area is impossible without extensive work on our system of roads and highways, it appears that the money to accomplish it is actually going to be made available in the not-too-distant future. And we all know what growth means: more jobs, more people, more houses, more malls, more taxes and, inevitably, more cars and an ever-growing demand for more concrete on which to put them.

Developers have preached the "Growth is good" lie for so long that most people, including the Daily Press editorial staff, actually believe it.

Enjoy your growth, folks. After 35 years here, I'm moving to Oregon. I've found a place there that has not yet been completely spoiled by growth.

Don Crowson

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