Despite Japan being one of the most technologically advanced nations in the world, it is largely a cash-based society. Larger stores do allow you pay with a credit card, but on the whole, Japanese shoppers don’t use credit cards as often as Americans do. I was told this before I was stationed in Tokyo and warned not to use my credit card, but I decided to try it anyway.

Option One or Two?

I bought some household items at a well-known Japanese retail chain and pulled out my Master Card. I was terribly curious to see if I could actually use it, and I had enough money to pay in cash just in case my advisers were right.

The cashier recounted to me in Japanese each item she rang up, not that I understood what she was saying. Obviously she realized this because when it came time to announce the total, she smiled politely and turned the display around for me to see the price. I handed her my credit card. She smiled, asked me something in Japanese and held up two fingers, one at a time: one or two?

What Does It Mean?

Oh, boy. I wasn’t sure but decided to take a guess. One. She nodded, took my charge card, rang up the purchase and gave me the receipt. Now I’m curious. I had to know what the one or two thing meant. Sadly, no one on the base nor at work knew.

Even my friend who’d been in Japan longer than me simply advised, “All I know is you just say one.”

Enlightenment

Then one day, a translator came in from the States. We had lunch, and I was dying to ask him about the one or two credit card option. Finally, I had found someone who had a clue. Apparently, the Japanese credit card system is fashioned after the original American Express program, where you could split the charge or pay for it in total. When you choose option one, you’re asking to pay for the entire charge. If you choose option two, your charge is split into two consecutive bills.

For the Japanese, regardless of whether you choose option one or two, you are required you to pay the entire balance on your credit card each month. In other words, if you owed $300 and chose to split the bill, you would be charged $150 at the register. The following month you would be charged another $150. In both cases you would be required to pay the full balance of $150 when your credit card bill is due. There is no option of a minimum payment like in the United States.

Military loans are becoming popular with consumers. In the recession, many people are struggling to make bill payments on time and are looking for funding options. Because of the banking industry’s issues, traditional lending is not always an option. In particular, with Obama’s restructure of the lending industry, more banks are putting off lending to consumers. This puts the consumer in a difficult spot. They still have bills to be paid, and have a lack of cash to make payments.

Military loans are an option for non-civilians. There are different qualifications, but the three main ones are

1. GS-6 or higher designation
2. Retirement from the military after 20 or more years of service
3. Currently on active duty or working full-time active personnel on reserve

Any one of these three requirements usually will qualify a military person to apply for a loan.

Repayment

Repayment of military loans is also simple. Payments are deducted from paychecks in fixed amounts. If a person qualified for this type of loan, the repayment structure is in place, so remembering to make payments is unnecessary.

Risk minimized

Military personnel are paid by direct deposit. Armed Force workers automatically have steady income, so the risk to a lender is minimized. It’s simple to apply online and have an answer as to whether or not the applicant meets qualifications, within minutes. With auto-repayment set up for qualified borrowers, there is no added risk. These are some of the simplest loans to use when a military worker needs funding.

Part of the reasoning behind high interest rates is that traditional lenders are trying to protect themselves from customers who may not make payments, or make payments on time. To mitigate their risk, they build safeguards into the loan, such as late fees, interest rate hikes and processing fees. With military loans, repayment is automatic so these safeguards are not needed.

Interest rates

The other advantage of a military loan is its reasonable interest rate. While the banking industry is still reeling from the recession’s aftermath, military loan companies are impervious. Consumers who try to get bank loans still have to work with difficult applications and high interest rates.

Terms

Military loans are also short term loans and that saves the qualified customer from many charges a normal loan would incur. Normally, the longer a loan, the more interest fees a borrower will end up paying. For example, on a $100,000 home loan, at 7% interest for 30 years, a consumer will end up paying more than $139,000 in interest fees alone. It’s the amount of time that increases the ending interest payments. Military loans, on the other hand, normally last for a few weeks, thus cutting out any enormous interest fees that accumulate over time.

Military loans a viable option

If a person meets the criteria, military loans are a convenient and quick option for them to pay emergency bills. These types of loans are simple to apply for and their lifespan is short enough to actually benefit both the lender and the borrower. In the end, they provide the necessary funding to qualified customers, and give them piece of mind when it comes to their finances.

With the growing problem of credit and budgets already tightened until “it hurts,” can a payday loan be a port in a storm? Of course, if you are among the unfortunate who have just been laid off or terminated from your employment, it’s certainly not a viable option. For those employed though, who are fairly secure in their jobs and still receiving a paycheck, pressing debt can be made less stressful if there is the possibility of borrowing money against your next payday. The key here is to utilize this type of service in a very responsible way.

Staying Realistic About Debt

It’s very important to keep in mind that more borrowing is not a wise solution to a financial problem that, more than likely, was caused by borrowing too much in the first place. The economic downturn that we have been experiencing has hit everyone in one way or the other. It’s tough to make some of the bills on time. For someone who has had a bad month with some unexpected expenses, i.e. illness, car repairs and the like, a payday loan could definitely be a handy “quick fix” for getting a bill such as a house payment, or car payment made in a timely fashion. However, it’s important to remember that acquiring payday loans on a regular basis is not a cure-all for problem debt.

Set up a Budget

If these horrendous financial times have not already encouraged you to do so, now is the time to set up a budget. Look for realistic ways to cut down on spending. For example, if you have been eating out twice a week, cut down on this expense. Eat out only once a month, making it a family event that everyone looks forward to. Make a list of things you need when you run errands and try to make less trips back and forth to the same locations. This will cut your gasoline expense. If your family enjoys going to the movies, try renting a movie every couple of weeks and it will seem more like a treat. And put a limit on how much you will spend on groceries each week. Plan your meals and make healthy choices including vegetables, fruits, and more economical proteins such as chicken and cheese. Give each family member a chance for input on preparing their favorite dish.

Tightening the “Financial Belt”

As discouraging as it seems, you are not alone in this crisis. In the final analysis, many thousands of families are struggling to make “ends meet.” If you are still employed and are in a position to apply for a payday loan, you are ahead of some.

Cut expenses to the bone

Think of new and innovative ways to “stretch that dollar” and once you’ve come up with a budget that you can live with, stick with it. Don’t be tempted to take too many of those payday loans. There is no easy money, and there is no free money.

This financial crisis will not last forever, but there are no current hard and fast solutions that have been found to bring about quick change.

You may be facing insurmountable debt, the danger of losing your home or car, and continual harassment from debt collectors. Your struggles may be compounded by divorce, the loss of a job, uninsured medical expenses, or a combination of unexpected events. If you are in extreme financial distress, a quick payday loan clearly is not going to go the distance. But you know you need to do something.

Is bankruptcy the answer?

The two most common types of bankruptcy for individuals are Chapter 7 (where you can get rid of certain types of debts altogether) and Chapter 13 (where you can pay all or, more frequently, a portion of your debts according to a court-approved payment plan). To file under Chapter 7, your average monthly income for the six months immediately preceding the bankruptcy filing must not exceed the median income in your state. Alternatively, you may file under Chapter 7 if your income is insufficient (after subtracting certain expenses for basic necessities) to repay any part of your debts.

Ask an attorney

Determining whether you are a candidate for bankruptcy and whether filing for bankruptcy would be in your best interest requires in-depth legal analysis. Before you make a decision, be sure to get legal advice from an experienced and reputable bankruptcy attorney.

Chapter 7 debt liquidation

A Chapter 7 bankruptcy allows you to get rid of certain types of unsecured debts while keeping your exempt property. In many cases, you can keep all your property. Among the kinds of unsecured debts you may include are credit card balances, personal loans, debts remaining from repossessed property, utility bills, and medical bills. In some cases, you also may be able to discharge old income and property tax debts. Chapter 7 bankruptcy may be an effective alternative if you own little property and have an unmanageable amount of debt. Unemployment, unexpected medical expenses, and divorce are some of the things that can precipitate a Chapter 7 bankruptcy.

Chapter 13 debt adjustment

If you do not qualify for Chapter 7 and you have a regular income, you may be able to file a Chapter 13 bankruptcy. Chapter 13 involves a three- to five-year court-approved payment plan to pay your debts, or a percentage thereof, in an affordable manner. Chapter 13 may be an option if you are behind on your car or house payments and want to avoid a repossession or foreclosure. Or it may provide a manageable way to pay debts that you cannot get rid of in bankruptcy, such as taxes, child support arrearages, and divorce debts. Chapter 13 may also allow you to keep valuable assets that you would have to surrender under Chapter 7.

Life after bankruptcy

Although bankruptcy is designed to give you a fresh start on  finances, it will have a negative impact on your credit rating and can remain on your credit report for up to ten years. But if you are a candidate for bankruptcy, you are probably deeply in debt and behind on your  payments. As a result, your credit score is probably very low already. Improving your income-to-debt ratio by reducing your debt load can be the first step toward improving your score. Even if you have a perfect payment history, if you have more debts than you can pay using your income, you will have a poor credit rating and bankruptcy may actually be a positive turning point in your credit history.

If bankruptcy isn’t for you, read about other options in What Should I Do | Debt-Relief Options.

As you can probably guess, a debt consolidation loan won’t cover all of your bills. Debt consolidation should only be used to pay off real debt, meaning a lump sum that you owe and are trying to pay off.

If you have several large bills that you are trying to pay off, debt consolidation can help. Debt consolidation can’t help you pay your cell phone bill or your rent, but it can make it easier for you to pay those by bringing down your monthly debt payments.

Medical bills

Medical bills can be very expensive. Generally, if you can manage to make regular payments, some health care providers will charge a low interest rate. However, if you take too long to pay off a medical bill, it will be turned over to collections. Some health care providers will turn bills over to collections after only three or four billing cycles.

Bills in collections

The longer the bill stays in collections, the worse an effect it will have on your credit score. If you make an agreement with a collections agency and you default on it, the agency can garnish your wages. Not only does that mean the agency can take money directly out of your paycheck, this will probably end up costing you quadruple the amount of the original bill.

If you are in danger of defaulting on an agreement with a collection agency, debt consolidation can protect your credit score, save  your paychecks and keep those harassing creditors off your back.

Credit card bills

If you have a high amount of credit card debt, you are a good candidate for debt consolidation. Most debt consolidation loans will carry a lower interest rate than credit cards. If you have several credit cards, you can get them rolled into one loan with debt consolidation.

But once you get debt consolidation, you must make sure that you avoid acquiring new debt. If you secure a debt consolidation loan that has a lower interest rate than your credit cards and get them all paid off, don’t turn around and start using credit cards again.

Catch up

To read the introduction to debt consolidation, check out Debt Consolidation Part 1. To read up on the benefits of debt consolidation, check out Debt Consolidation Part 2.

They look so innocent, don't they?

Lately, I have been stewing a bit over the amount of interest I’ll end up paying on some cash advances I got on my credit card. Had I known more about my options beforehand, I would have definitely made a different choice. If I’d taken out a payday loan instead, I could have save a lot of money.

But now, like a motivational speaker who can tell high school students to “stay off drugs” because “I’ve been there,” I present to you my new campaign: Just Say No To Credit Card Cash Advances.

Let’s start at the very beginning

Now, my message isn’t for everyone. But, if you have a credit card that already has a balance on it, listen up. Here is my story.

When I started college, I signed up for a couple of credit cards. When I first got them, I promised myself I’d only use them for emergencies. However, as time went by the definition of “emergency” got a little hazy. Eventually, going out to dinner with friends and attending concerts became major emergencies.

Fast forward

Long story short, I build up a bunch of debt on my credit cards. Several years later, I really did have an emergency. Not a life-or-death emergency, but an I-need-money-now-and-it-has-to-be-in-cash emergency.

I was moving, and my roommates and I found the place we wanted. Only we had to put down our deposit now, or we’d lose the place. And the landlord wanted cash. No sweat, I thought, I’ll just grab a cash advance from my credit card.

What might have been

Now, if I’d taken out a payday loan for the $500 I needed, I could have paid it back when I got my paycheck, plus a flat fee, and been done with it. I’d never have to think about it again.

But, as you can probably guess, that is not what happened. If I’d taken that route, the fee would have been a fraction of what I will end up paying on that cash advance.

Too late for me

If you are thinking of putting your credit card in this machine to get a cash advance, walk away.

I knew that the interest rate on a cash advance was higher than my regular interest rate, but it wasn’t until months later that I found out this:

I cannot pay off that cash advance until I have paid the rest of the balance off. Yep, that’s right, that cash advance will sit there on my credit card, collecting 21 percent interest, while I pay off the rest of my balance. The other balance will only cost me 12 percent interest, so if I had a choice I’d pay off the cash advance first. But I do not have a choice. I know. I asked.

I am going to be paying for that $500 cash advance for years. And years. And years. It will cost hundreds, maybe even thousands, of dollars. So, kids, don’t make the same mistake I did. Just Say No to Credit Card Cash Advances.

Trash or treasure?

Auctioneers who run storage unit auctions say they are busier than ever.

When people fall too far behind on their storage unit payments, the company that owns the unit auctions off the contents to open up the space for another customer.

Business booming for auctioneers

This has been happening more frequently than ever at storage unit companies all over the U.S.

“We are hearing from auctioneers across the country that they are seeing an increase,” said Chris Longley, spokesman for the National Auctioneers Association.

Unexpected contents

The Associated Press points out that while the auctions themselves are a sign of the times, the contents for sale can be even more telling:

“The troubled economy is reflected in the items being sold — trendy clothes, high-end appliances and other indicators that the owners were, until recently, well off.”

Perhaps people who have never needed payday loans or learned about debt consolidation just didn’t know what to do when they couldn’t make their storage unit payments.

Full of surprises

Until the auctioneer yells “sold!” the contents in the unit still belong to the original owners. The entire contents is auctioned off for one lump sum, and buyers cannot touch any items until after their purchase is complete. Auctioneers warn bidders to only bid on what they can see.

People come to these auctions in hopes of finding “buried treasure,” and sometimes they do. Rich Schur of Schur Success Auction Services in Colorado Springs, Colo., tells the story of one unusually lucky bidder.

“There was one where they bought the unit and moved the boxes and found a Harley. For $400 or $500, they got a unit with a $10,000 motorcycle in it.”

By the numbers

Schur’s company has seen the number of units it auctions jump from 950 in 2007 to 1,250 in 2008. In January alone, the company auctioned 250 units. Wayne Blair said his Michigan-based business has seen its number of auctions rise about 10 percent in the last year, according to the Associated Press.

From October to December in 2008, household net worth took the biggest dive on record. Overall, households in the United States lost $5.1 trillion, the largest amount lost since the government started keeping records in 1952.

That drop was almost twice the decrease that occurred in third quarter 2008.

Economy cut in half?

Total net wealth in the U.S. now stands at $51.5 trillion. U.S. household net worth has fallen for five consecutive quarters, and dropped a total of $12.8 trillion. Some personal loans aren’t included in net wealth.

The decline almost matches the total size of the U.S. economy, which was $14.2 trillion in the last three months of 2008, says the Bloomberg Press.

Savings and stocks

Analysts believe this drop in wealth will cause households to save money in coming months. Americans’ rate of saving has already increased significantly throughout 2008 and the beginning of this year. The decline in wealth is primarily being linked to dropping stock prices and home values.

“I don’t think it’s any surprise that wealth has declined so much given the bad news out of markets and house prices,” said Jonathan Basile, an economist at Credit Suisse Holdings USA Inc. in New York. “This decline in wealth is a headwind for spending and it’s a big reason to be cautious and to save.”

Down with debt

Households are not only saving more, they are taking out fewer personal loans, using less credit and borrowing less in general.  For the first time on record, debt dropped. Total dept fell at a 2 percent annual pace during fourth quarter 2008.

Mortgage borrowing also continued to decrease last quarter. It fell at a 1.6 percent annual pace, after decreasing at a 2.3 percent rate in the quarter before, the U.S. Federal Reserve said.

Housing still in crisis

Home values continue to plummet as foreclosures continue. Real-estate-related household assets fell by $937.1 billion last quarter. In third quarter 2008, they fell $681.2 billion. Foreclosures in February were 30 percent higher this year than last year, despite several large companies placing moratoriums on foreclosures.

Bank robberies have taken on some unusual forms lately.

Failing businesses, depleted stock portfolios and family debt have driven some unusual suspects to be accused of robbery lately.

It seems the stress of dealing with a broken economy has caused a few people to snap — people who others describe as regular, upstanding citizens. When personal loans aren’t an option anymore, it seems some people have decided they will find other ways to get money out of banks.

The case of the Church Deacon

Last month, a man held up a South Carolina bank with a gun. Several people inside the bank were held hostage. Police say the man with the gun, who conducted a 90-minute standoff, was Bruce Windsor. The 43-year-old man was a local church deacon. Not only were people who knew him seemingly baffled by the situation, so was he.

“This doesn’t even register. I’m just ill,” Windsor told a judge in a court appearance. “I’ve never stolen anything in my life.”

Police say Windsor tried to steal cash in order to save his failing real estate company. The father of four had no criminal history.

A modern-day Robin Hood?

In September, a father of two teen daughters “lost everything” in the stock market. Keith Giammanco then allegedly went on a robbing spree. Police say he robbed a total of 12 banks.

His motivation for the crime appeared to be his daughters. He wanted to keep them in private school and continue to buy them things. One daughter says her father was “her Robin Hood.” The way she sees it, he took from the “greedy” banks to make his family’s life better.

I guess no one saw it coming

Perhaps Robin Hood would identify more with  Barbara Joly, 68. Joly has been dubbed the “Ohio granny robber,” and last month she was sentenced to six years in prison for robbing three banks.

Joly’s husband says she stole the money to help her son, who had fallen deeply into debt and turned to his mother for help.

South Carolina

If I live in South Carolina, should I look elsewhere to get my payday loans? It looks like I should, that is if I want more than one loan. Taking multiple loans has been banned here by the legislature and the bill also limits the total amount you can get with payday loans of only $600.

This bill, passed in South Carolina, is said to save its people from the loan sharks. But do these payday loan lenders really eat us up? Aren’t we the ones who are throwing in the bait? Would it be proper to blame the lenders alone? Doesn’t the government have any other idea to break the spell of getting into debt? Will just the passing of bills that cut having multiple loans out really solve the problem? Don’t some people genuinely need payday loans to get over the financial crisis and get the much needed respite from their financial problems? How many jobs will be lost?

Wait and watch

All these and many more questions come to mind when we hear of this ban on payday loans. Nobody knows exactly what is going to come out of all this. We will have to wait and watch the results. At least there is one state trying out a different means to save their subjects and thereby their economy. If this would serve the debtors, that would be well and good, but I don’t think that’s what will happen. I think it’s going to make the debtors more desperate.

Just the fact that there are payday loans to rely on in a crisis might have done a world of good to struggling people. There are even some who have never taken a payday loan but the fact that it is there gives them security in itself. There might be people who get into trouble with their wayward spending and there might be people who simply lead a very economic life and still have financial emergencies through no fault of their own.

The Plight of Loans

People take out loans all of the time

There may have been a time when any type of loans was not our friend. People just would not take them for anything. But the times have changed and loans are an everyday happening and a way of life. The popularity of loans is so far and wide now that we get a loan for just about anything. And unlike earlier times, we do not hesitate in getting them.

It has actually reached a point that, even if we have ready cash to buy a thing, we still might not use the cash but would gratefully use any loan facility that is available. That is our right as U.S. Citizens. With bills like what South Carolina has passed, these rights are no longer ours. With the financial crisis and recession looming, everyone needs money. For many of us, the only support available is payday loans. When they are not as easily available, what do we do?

It is a myth that Payday loans may eat you up. Some financial pundits and the prominent grapevine would have you believe that instead of being your savior, payday loans are your killer. This is far from the truth.

Why would payday loan lenders want to push you into debt?

If the lenders of such loans intend to push you deeper into debt, how are they going to stay in business? They want you to pay them back as much as you want to pay them back. It is never going to be the intention of good lenders to push you deep into a hole of debt where you would not be able to dig out of, because they need you to pay them back.

Moreover, they don’t lend you more than you can pay back on your next payday. If the borrower is not able to pay that back, it is not the lenders who got them into trouble but the borrower, who should have been more responsible with his or her money. This is not just for payday loans, but for credit card charges and other types of loans. No one should take out a loan if they have doubts about repaying it.

Be strict about repayment

For your own peace of mind, make sure to only take any loan if you are sure you will be able to repay it. Forget about the half measures, like paying a portion and leaving the rest for another payday. This is not the way to manage payday loans. You have to simply make sure that you will pay back every penny that is due when it is due. This is a loan meant to ward off a crisis and not so much a loan to repair debt (although there are ways you can repair debt with a payday loan, too). If you have serious debts, you may want to consider another type of loan, a debt consolidation loan.

Be aware of the situation

Don’t get the wrong idea that payday loans will milk you dry. Remember, you signed the agreement when applying for the loan, so, you should know what your terms of repayment are. No, the lenders cannot charge you more than what is laid down in the agreement. The lenders should disclose every detail of the loan to the borrower, before the borrower signs the agreement. So make sure you read the terms and conditions well before signing. This way you will not be in for a surprise, when you see the withdrawal from your next payday income. No matter what, you should make repayment your first priority with your next payday check.

Interest

Another myth doing the rounds about payday loans is that they charge exorbitant amounts as interest or costs. With good lending companies, this is not the case. Most payday loan lenders do not even charge interest. They typically only charge a fee or cost for the loan amount. Many states have imposed a limit for these rates, though they are not a uniform fee for those states.

The facts

We should face up to the hard fact the falling deeper into debt is our own doing and not the fault of the lending company or anyone else. Manage our loans well and we will keep out of trouble.

When times are bad, anyone can get into debt. It doesn’t matter how important you are or at what level you live. An accident can put you in the hospital, and then you’ll be happy to have a Payday Loan.

It’s hard to tell who is lining up for what these days

As we sink deeper and deeper into the mire of debts and unpaid accounts, we find ourselves waiting around for things we took for granted not so long ago. Have you noticed how long it takes to buy a lottery ticket today?

It’s a fact that when the economy goes south, more and more people look to quick and easy systems of staving off financial disaster. The lottery is one of few ways to do this. But there is bad news – it means laying out cash to buy a ticket. And if you are desperate, will one ticket suffice? The worse news, not known by many, is that the odds of winning the main prize in a 6/49 Lotto, for example, is a very slim 1 in 14 million tickets. Perhaps if one is a little short, it’s better to hang onto the cash?

What’s happening at the Payday Loan office?

How are Payday Loans doing? Are there lines outside the office yet? If things keep drifting downwards, there probably will be soon. The conversations will start up in the lines: How much do you owe? Are you working? Have they cut your paycheck? This is followed by the amazement. Can you believe this guy is earning that amount of money!! You’re working sixteen hours a day for that salary? Are you crazy? Then comes the resentment. I could do his job standing on my head with one hand tied behind my back. The Payday Loan lines may turn out to be not such a good idea. Better go online to Personal Money Store.

Who’s standing in that line for a Payday Loan, anyway?

Anyone you can think of, from the bank manager himself, to the kid who works in the mail room. Debt is a great leveler and is not particular about who he strikes. Of course, some folks manage their affairs better than others and go to great lengths to stay out of debt, but no one is exempt from an accident or sudden illness that is not covered by the health insurance and can run you into debts of thousands in the space of a few hours. Forget about the lottery helping you out then. So when the guy in front or behind you in the Payday Loan line starts talking to you, you speak on equal terms. If you are feeling uncomfortable, so is he.

Don’t stand in line—go to the internet!

Just about anyone can get a Payday Loan. If you haven’t got one it probably simply means you didn’t ask. They are not dished out to everyone who is alive and breathing on the 15th of each month at noon – you have to ask. Look for them on the Internet – at Personalmoneystore.com.

Privacy is the best policy

Online is private-unlike a payday loan store where anyone can overhear you. Once you get your Payday Loans, no one should ask you what you did with the money – it’s yours to do as you like. You don’t have to account for it and you don’t have to make excuses or stories to explain to anyone. Most of all, you have to enjoy it, either by wiping out an aggravating debt or just having fun.

There are so many possibilities of how you can use payday loans to your advantage.  One of those ways is that the loan can be used to stay away from credit card debt. Many of us find ourselves falling short of credit card payments and accumulating debt. But if we use a little common sense, we can get away very easily from falling prey to such debt.

What usually happens is that credit cards give us an option not to pay the full amount on the payment due date; we think that it is a great help and unknowingly hurt ourselves.  What we actually are doing is accumulating more debt and making it easy for credit card companies eat up our money as interest. This is not a good way to manage our finances. We should definitely curb the urge to do this and take all positive steps to keep away from credit card debt.

Set the rule

To start with, make a promise that you will make your credit card bill payments like clockwork, before the payments’ due date, never late. Also make sure that no matter what, you will not let your credit card company take a penny more than what is absolutely necessary, even if you have to borrow from others to meet that commitment. Well, you might be thinking, if it was so easy to borrow, you would not be using credit cards. Come on; do not get discouraged, I can let you into the small secret I use to get over the borrowing difficulties.

Easiest way out:

It is actually one of the simplest and easiest ways to borrow money for your needs. If you have not already guessed it, yes, I am getting at using payday loans for this. Think about it. You are only short of a few bucks in paying the full balance of what you owe to the credit card company. When you do not have that money, what usually happens is, instead of paying the full balance, you end up paying only the minimum that the company wants you to make.

Assert Yourself:

This is one habit we have to get out of as quickly as possible. When you find you will not be able to meet the full payment for your credit card bill, get a cash advance that is given as a loan on your own income, to overcome the payment issue. Now you know you will not be getting your whole income next month, because you will pay back the cash advance, so you will get control over your spending.

The added advantage is that this all will subconsciously play on your mind whenever you think about using your credit card and you should be deterred from using it. But what if today is the last day I can make a payment on my credit card without having a late charge?  Don’t worry but act fast. Once you apply for your payday loan and if you pass approval, which takes only a few minutes, you will usually have the money transferred to your bank within two hours. The beauty of getting such loans is that you do not have to undergo any credit checks or faxing to obtain one.

So next time, when you fall short of your credit card payment, think of using payday loans to overcome it.

Tips For Smart Borrowers

There are so many important facts and issues that are highly relevant to applying for a payday loan or installment loan that uninformed borrowers pay a higher price. Here are just some quick facts that all borrowers should keep in mind when negotiating with payday loan lenders.

1. Ask your lender if there is a prepayment penalty
2. Ask your lender if they can provide installment payments
3. Ask your lender if they will conduct a hard inquiry type of credit check
4. Make sure you read the lender agreement carefully
5. Ask if there are any frequent customer rewards programs
6. Ask if there is a refer-a-friend program with compensation

Payday loans are your friend in times of need

Many people who use payday loan services are not the type you would think would ever need a payday loan. There are just too many situations that arise in life to never need a payday loan. Emergencies always come up and sometimes they surprise you when you are short on cash. Here is the index of the E-Book so you can get a sneak peak inside the payday loan resource for borrowers.

Index of:
“Payday Loans | Read This Before You Apply”

Payday Loans – Read This Before you apply
What type of Loan do you Really need?
Advantages of Payday Loans
Facts and Fallacies of payday loans
Purpose of this eBook | 4
How we can help | 4
Secured personal loans |  5
Unsecured personal loans |  6
Short Term personal loans | 6
Payday Loans personal loans | 7
Quick Cash | 7
Maintain Your Credit Rating | 8
Easy Application Process | 8
Minimal Criteria Makes Everyone Eligible | 8
Payday Lenders Trap Borrowers Into a Cycle of Debt | 10
Payday Lenders Charge 391% Interest Rates And Higher | 11
Payday Lenders Make Obscene Profits Off of Consumers | 12
Payday Lending Strips Money from the Community | 13
Payday Lenders Prey on Their Borrowers | 13
Consumers Will be Better Off Without Payday Loans | 13
Demographics of Payday Loan Borrowers
Eliminating your dependency on Borrowed Money
Eliminating Consumer Credit debt
Building and Maintaining Credit
Identifying Habits That Cost You Money | 16
Money Saving Tips and Tricks | 19
Debt Consolidation | 21
Good Credit Strategies for Eliminating Debt | 24
Poor Credit Strategies for Eliminating Debt | 29
Good Credit and Financial Success Go Hand In Hand | 31
How Credit Bureau’s Will Judge You | 34
One: Male vs. Female | 14
Two: Age | 14
Three: Income | 15
Four: Education | 15
Five: Minority Exploitation | 15
Payday Loans Targets Families | 15

I am financially frozen every January, ever since I seriously started using money, and this year is the biggest freeze ever. December was great and we really enjoyed ourselves. We went to the usual round of parties, the office, our families, then at our friends and finally at the neighbors. A good time was had by all. The wine and beer flowed, the presents made the rounds until everyone was satisfied at what they ended up with. My kids did exceptionally well from Julie and me but it cost plenty… Ever priced new bicycles for teenagers?

The office, as usual, closed between Christmas and New Year so I had a chance to catch up with the household chores and maintenance jobs and by the 30th of the month, I leaned back feeling pretty pleased with myself. I had a whopping overdraft at the bank, but December was bonus month and December 31st was bonus day and I was almost there.

No news is bad news

The last day of the year passed quietly. I checked emails, collected the kids from school and generally sat around drinking coffee in front of the computer and waiting for the bonus announcement to arrive. It has done this faithfully for the past 12 years or so. It comes in the form of a joyous looking email. Another cup of coffee and more waiting. No incoming mail. Now black thoughts started invading my one-track brain. What if…? No bonus? Is that possible? But it was a very good year. Then my mind moved to possible solutions. A Payday Loan solution?

I have used this a few times before, always in the month of the anniversary of the car purchase. That’s the month they hit me with the license, the insurance and the annual service all in the same couple of weeks. I used a Payday Loan to get through that and it worked pretty well. Could I use a Payday Loan to get me through January this time?

Bad news confirmed

I was right. No bonuses for 2008. Yes, it was a record year but everything collapsed in December. Financial chaos, stock exchange melt-down, back to 1929 and all those fancy meaningless terms they harvested from the newspapers.

So I am about to apply for a Payday Loan to help settle some of the debts incurred by holiday cheer. I am sure the company will still be here at the end of January and will pay the salaries so I can re-pay the loan. What I need to check now is how much I can borrow and if I can renew it for another month on the due date so that I pay it back over more than one month.

Good news at last

Yes, the Payday Loan will help out in every way it can. They are courteous, friendly and eager to be of assistance. How nice it is to know that there is an alternative to fighting with the bank. Pity about the bonus though.

McCray-Miller says she plans to introduce the bill after the Legislature convenes Jan. 12.

Necessity

The recession has wreaked all kinds of havoc on the everyday lives of Americans. However, it’s also causing people like McCray-Miller to assess the causes and come up with solutions for preventing a repeat performance.

McCray-Miller says, based on Americans’ increasing debt, education is needed for individuals to avoid another financial crisis. She argues that children learn by example, and they have watched their parents (and their government) accrue debt all their lives. Her aim is to break the cycle.

While a payday loan may be a welcome relief for someone in a bind, it’s certainly ideal if people can prevent financial emergencies when possible.

If it ain’t broke … oh wait, it’s broke

I think we are well past the point that people can argue there’s not a problem. Yes, we can blame mortgage lenders and creditors for causing this recession. But while we can’t directly control what investments banks and government entities do with their money, we can control what we do with our money.

Some factors that went into causing this recession couldn’t be prevented. However, educating children about the dangers of accruing bad debt is a step in the right direction toward a generation of individuals who are more capable of financial freedom.

Lesson plans

A 2003 law in Kansas already requires financial literacy to be included in Board of Education guidelines for lesson plans. Apparently this law isn’t clear enough, because some schools still don’t teach the topic. McCray-Miller’s hope is that her law, if enacted, will require that students be financially literate in order to graduate.

So what should be included in personal finance education? Well, I have a few ideas. First, if children learn the difference between good debt and bad debt at a young age, they are more likely to avoid bad debt. Also, students should know how to assess whether the terms of a loan are realistic. With this kind of education individuals will learn how to manage their finances in a smart way and avoid risky deals, such as sub-prime mortgages.

Impressionable age

Some may argue that Kindergarteners are too young to understand personal finance. I believe if the subject is broken down into its simplest, most rudimentary concepts and then built upon year by year it will be successful. It’s like learning math. First, you teach counting, then addition, then multiplication and so on.

So first teacher would educate students on what debt and credit are and then go from there. If students can understand the difference between negative and positive numbers, they should be able to understand debt. After they understand the concept of debt, teach what kinds of debt are dangerous. If children learn this at a young age they are more likely to believe the concepts are true and avoid financial hardship in the future.

Hope for the future

Emergencies do come up, and with so many people teetering on the poverty line, there will likely always be the need for an occasional payday loan. However, starting financial education at a young age will help the next generation to be smart about their money, even in tough times.

In Part I, I covered debt-relief fraud, advance loan fee schemes, work-at-home cons and overpayment scams. Here are a few more shady practices to watch out for in 2009.

Congratulations! You’ve been had!

Have you ever gotten a letter saying you won a contest you didn’t enter? That should be warning flag No. 1. If a contest or sweepstakes ever asks you to pay fees of any type, whether it’s shipping and handling, insurance or taxes, it’s a fake.

Taxes are always paid directly to the IRS. Legitimate sweepstakes do not charge you anything in order for you to receive your money. If there is a “check” included to pay the fees, and the letter asks you to cash the check and wire the funds in order to claim your prize — you guessed it: Fake.

With payday loans, you don’t pay any fees until after you have received the services and funds promised. This is a good example of legitimate business practice.

Oh, it’s fixed all right

Another way for scammers to take your money and run is to charge you for home repairs upfront. Fake contractors have conned homeowners into paying for home repairs in advance and then never showed up for work. If you need repair work done on your house, shop around. Get lots of estimates and check with the Better Business Bureau. Never hire someone who just shows up at your door.

Most importantly, do not pay for all of the work upfront. ConsumerMan from MSNBC recommends you don’t pay for more than a third. And find out where your money is going; get details about materials and labor so you know the real cost of the work.

A Web of deception

With the age of the Internet comes the age of Internet scams. As online auctions become more popular, con artists are finding new, creative ways to get something for nothing.

Before using any online auction service, check out the site’s fraud protection policy. Don’t wire money; use a credit card or well-known escrow service. And beware of sending money orders or cashier’s checks.

Stay smart

In the midst of this recession, everyone must be very careful about where their money is going. Any time you are spending money on something intangible, make sure you know the company  or person who is taking your money. Remember that the phrase “you have to spend money to make money” only applies to people investing in the stock market or starting a business.

When  you apply for payday loans, you don’t have to pay any fees  until  you pay back your loan. Now that’s a recipe for a sure thing.

Last week, I wrote about some financial scams of 2008. Today I came across an article that summarizes some scams we are likely to see in 2009. The best weapon in the war against poverty is knowledge, so here’s some ammunition for you.

Don’t get duped by phony debt counselors

Many Americans will be trying to get out of debt this year. In response, many scammers will  be posing as people who can help. In 2008, con artists posed as debt counselors who charged an up-front fee, then took the money and ran. This trend is expected to continue if consumers don’t get wise.

One money expert recommends checking with the The National Foundation for Credit Counseling to check the legitimacy of any operation. Also, don’t respond to the first ad you see. Shop around and make sure you find a reputable, trustworthy credit counselor. In my words:

If you need someone to help you manage your debt, make sure you find them; they don’t find you.

Don’t pay for promises

Some scams involve charging money upfront and promise a loan, line of credit or credit card. Legitimate lenders do not ever “guarantee” a loan. Fees are only assessed after a loan is approved. For instance, if you apply for  payday loans, you’re told upfront how much you’ll be charged, but not until after you are approved. And you don’t have to pay the fees until you pay back the loan.

If a lender tries to charge you fees before you are approved for a loan, walk away. Chances are this “lender” is a fraud.

Too good to be true

We’ve all seen the ads. “Work from home and earn $1,500 a week!” Most of us know that if it sounds too good to be true, it likely is.

The way these scammers make money: They tell you you must pay for instructions or a contact list to begin your “sure-to-be-a-success” at-home business. When is the last time you started out a job by paying for it? If you want a legitimate job, make sure the money is flowing in the right direction from the start.

Don’t do online buyer’s dirty work

Are you trying to sell something online? If so, beware. There are con artists out there who will agree to pay the asking price, but insist that they must write the check for a larger amount, usually thousands of dollars more.

They’ll offer some reason, such as needing to pay a shipping company, and ask you to wire transfer the overpayment amount. I think we all know where this is going. Your money will disappear, the check will bounce and you’ll end up paying the fees and footing the bill. If someone offers to buy something online from  you and asks you to move some money around for them, respond with an adamant “DO IT YOURSELF!”

Check out Part II

So those are a few scams to be wary of this year. But I’ve got more! Check back later today for “Payday Loans Can Help | Scams Will Hurt| Part II.”

Payday Loans looking better every day

This story from the L.A. Times shows that more middle-class citizens are using payday loans to help them through tough times. One woman took out a payday loan for car repairs. Smart lady. About seven years ago, I put my car repairs on a credit card. It’s still not paid off.

That one-time fee for a payday loan is sure looking a lot better than the years of interest I’m still paying on my credit card. The uptick in middle class people using payday loans just shows that more people are aware of their options. Short-term loans should always be considered as an alternative to long-term debt.

Considering your financial options seems to be the trend for 2009 New Year’s resolutions. This video at CNN.com shows that a lot of people are making financial  resolutions, and I’ve come up with a few of my own.

Resolution No. 1: No credit cards

If you are going to join me in this resolution, grab a pair of scissors.  I am not kidding. You might think that you need those little plastic squares of figurative money, but you don’t. Cut them up. Now. There are plenty of alternatives in financial emergencies that won’t cost you 18 percent interest.

If I could go back in time and never have a credit card, I’d do it. If you’re a young adult starting life on your own, heed this advice: Do not fill out that credit card application. You will regret it. When you’re staring down your 27th birthday and still paying for jeans you bought when you were 18, you are going to kick yourself.

Resolution No. 2: Say goodbye to material girl

I have always made excuses for spending $80 on jeans. “I’m going to wear them ALL THE TIME,” I said. Well, I can wear a $20 pair of jeans all the time, too. More people nowadays are saying goodbye to brand names and designer labels. You can do it, too.

Sure, finding less expensive alternative can be time-consuming and inconvenient. But if you know that going into it, it’ll make life easier. That time you spend watching sit-coms can be spent hunting for bargains instead. If it helps you avoid racking up bad debt, it’s well worth your time. Remember, payday loans are for emergencies and should be used when they can save you money. Don’t spend it on a pair of shoes.

Resolution No. 3: Keep resolutions

This blog is full of simple tips that will help you become debt-free. Know how much you owe. Make a plan. Most importantly, stick to that plan.

This study shows that women are more likely to make New Year’s resolutions, but less likely to keep them.  And the majority of people, women and men, do not keep their New Year’s resolutions. Well, 2009 is the year to turn this around. You can do it!

Resolution No. 4: No credit cards

I know, I know, I said this already. But it’s important! Know your financial options, like payday loans, and don’t end up with bad debt that never seems to go away.

An article by your payday loans source.

Hospitals are facing the need for bad credit repair as they continue to incur bad debt along with the rest of America. Health care is a crucially necessary industry, but the business of saving lives isn’t immune to the crumbling economy.

Hospitals, much like ordinary people and other businesses, take out loans to cover expenses. They use credit to buy equipment and sometimes even to pay employees.

A vicious cycle

Because Americans are feeling the pinch of a recession, the numbers of elective procedures and preventative measures are falling. People are spending money only on necessities. Those who don’t have insurance avoid spending any money at all on medical care.

As regular checkups and preventative care fall by the wayside, people end up in emergency rooms. In effort to save money or avoid gathering more debt, they wait until it’s too late and their conditions become life-threatening.

So the decline in patients seeking elective procedures and preventative care doesn’t mean the hospitals can get by with fewer staff members. They have to dedicate extra staff to the emergency room.

Unemployed and uninsured

Hospitals are also losing money because the number of patients with insurance is dropping. As unemployment soars to record heights, fewer people have insurance. Paying for health insurance out of pocket can be daunting, especially for people living on unemployment. Most people on unemployment can’t even get payday loans if an emergency comes up.

So as the number of people out there without jobs grows, the number of people without health insurance grows, too. This amounts to unpaid bills sitting in the hospital’s accounting department as patients simply don’t have the funds to cover them.

Closing up shop

When hospitals run out of bad credit repair options, they eventually just have to close the doors. Hospitals all across the country are calling it quits. Many rural hospitals in poor communities have shut down, but they aren’t the only vulnerable ones.

Large hospitals in rich areas are closing, too. As the recession continues, it seems no one is immune to the effects of the credit crunch.

Business is business

It doesn’t seem right that a vital, necessary service should be able to just quit or go out of business. But as long as health care stays privatized, that is what will continue to happen.

Wall Street got a bailout. The auto industry is seeking help from the government. Now it seems that hospitals won’t be able to survive without some help. If people can’t get the medical attention they need, bad credit repair will seem to be the least of their problems.

This article was brought to you by your payday loans source.