Even though the lending market has been dry this recession, cash advance loans have still been available.

The cash advance loan is popular with consumers who can’t seem to get credit. This is not to say that credit isn’t making a comeback of its own, as indicators reveal that it is. Lenders are starting to wake up and open their doors again. Yet it’s still a difficult prospect for those without premiere credit scores to find a lender. That’s where a cash advance loan comes in handy.

In the past year, Wells Fargo’s loan products have doubled in numbers. These loans can range from $1,500 to $100,000 and have rates anywhere from 8.5 percent up to 26.25 percent. Brent Vallat, business manager for the personal credit management of Wells Fargo, said, “We feel really good about our product. It’s the right product for the times and it’s a disciplined way for consumers to take control of their debts.”

The Banking Market During the Recession

Vallat’s statement about the “right product for the times” is telling of the market today. In past years, people relied on credit cards to bring them emergency funds. In 2006, lenders were handing out credit to almost every applicant. Their big mistake was to put no emphasis on how borrowers were going to pay the money back. Things took a turn when people started defaulting on their loans in mass numbers. The lending industry was stopped dead and suddenly things changed. Lenders reacted to the market and stopped lending as freely. They pushed credit rates up, slashed limits and increased the fees people pay for late and over-limit transactions.

Getting a Loan Today

Now that the recession is deemed “over,” lenders are starting to get back to business. Make no mistake, though, they have changed their lending processes. Michael Menzies, chairman of the Independent Community Bankers of America, stated, “Community banks have their doors open but when applying they make customers sit down, one on one, face to face with the borrower and discuss their income, the sustainability of their income, their sources of repayment, their debts and the purpose of the loan.” The terms of the loan will be widely varied in the near future and banks will be looking at the applicant’s credit history, relationship with the bank and their income. “Borrowers will be scrutinized thoroughly before they can get approvals,” Menzies added.

For some borrowers, the cash advance loan will be the most viable option. Bankers today promise that the process for applying for a loan will be rigorous. Many banks are expecting top-notch credit and in today’s economy, some people just won’t make the cut. Menzies believes that banks will eventually have more relaxed rules but, “It won’t be until way into 2011. No one wants to risk even a small loan after what they have been through in the past.”

Can a Consumer Get a Loan?

The answer to “Can a consumer get a loan now?” depends. One thing banks know is that their former ways of lending to anyone who applied were highly ineffective. They were a sure recipe for disaster for lenders and for consumers. Now that there is a newfound education on what not to do, banks are safeguarding themselves against trouble again. For consumers who suffered during the recession, a cash advance loan may be their only option.

Apply for a Cash Advance HERE!

Sometimes love just isn't enough (photo by creativecommons.org)

Pet owners love their animals and many of them use payday loans to pay for emergency pet care. Regardless of economic conditions, people will always find ways to provide the best care they possibly can for a loyal dog or a faithful cat.

Today, the average pet owner may have to stretch the budget to the breaking point to pay for an emergency veterinary visit. Dr. Ganner, MD, a veterinarian in Cleveland, Ohio, states, “You never know when a pet can get ill, just like a human. Pets’ surgeries can cost more due to lack of insurance and specialized care. It’s an immediate out-of-pocket expense.”

Save on day-to-day pet expenses

For anyone with a pet, there will always be unexpected medical emergencies. The most basic way to lessen the strain of emergency expenses is to put a little money aside all year long. Here are some ways to save money for your pet’s emergency, without cutting back on the quality of daily care.

1.  Fill prescriptions at Petmeds.com or a human pharmacy. When you fill an animal’s prescription at the veterinarian, you typically pay 30-70% more than you would online or at a regular pharmacy. Rather than blindly accepting the prescription medication handed out at a veterinarian’s office, pet owners should ask veterinarians for written prescriptions and then fill them at regular or online pharmacies.

2.  Buy pet food at superstores like Costco or Sam’s Club. Superstores purchase inventory in great quantities at huge discounts. They carry fairly wide arrays of pet foods, and you are likely to find one of your pet’s favorite brands in their well-stocked aisles. If you don’t find the brand you prefer, talk to the manager and ask if the store will order it. When enough customers ask, superstores respond by purchasing requested products. Their goal is to stock everything their shoppers need, and they work hard to live up to that.

3.  Buy pet toys at superstores or grocery stores. Toys at pet stores and boutiques can cost 50% or more than the same (or very similar) toys at a superstore or grocery store. The reason for this is that pet stores mark up all their products to pay for advertising and promotions. Retail sales are their only source of income, so they have to maximize their markup.

Start an emergency pet fund

If you put aside the money you save on these everyday pet expenses, it will be easier to pay for those inevitable emergency expenses. If your savings are adequate to cover the emergency, a small payday loan can make up the difference. As Dr. Ganner stated, “If people have huge monthly budgets for their pets, it’s difficult to then extend that budget even more when an emergency comes up…but, finding ways to save throughout normal times, can make it much more manageable.”

Love knows no bounds (photo by creativecommons.org)

Love without bounds . . .

People are going to care for their pets regardless of what happens on the economic front. It’s estimated that the pet industry generates over $45.5 billion annually. Global market expert Eugene Fram stated, “It’s a substantial market. The numbers bear that out with more than 60% of households having a pet. It’s a good business and a great target market to pursue.”

But avoid heartache by economizing

Because pet owners are willing to spend so much on the daily care of their pets, they frequently compromise their ability to pay for emergency care. To avoid finding yourself in that stressful situation, it’s a good idea to treat pet care like your other budgeted expenses.

Cut back on daily pet expenses and put the savings aside in an emergency pet fund. You’ll be pleasantly surprised at how much easier it is to afford the best possible pet care when you need it most if you save just a little every day. With an emergency pet fund at the ready, when emergency strikes, you’ll be able to pay for it without borrowing; or in the worst case, with a much smaller payday loan or a lot less help from family or friends.

If you need a payday loan to get started, Apply NOW!

Americans are looking for debt relief, and forgoing bulking up their emergency funds. In the past, people were taught to pay careful attention to their emergency accounts. They were primarily interested in making sure they had between 3-6 months of income tucked away for emergencies, such as job loss, emergency medical bills or a hefty car repair bill. A new poll is showing that people would rather tackle debt relief, than keep emergency savings as a priority.

According to Russell Meyers, chief economist of Dawson and Brickers, “People used to see emergency funds as a way to save them in times of trouble. Unfortunately with the economy as difficult as it is, many people used their emergency funds. They see getting rid of debt first as key to not having to diminish their savings again.” Rather than start saving, many Americans are looking to consolidate bills, re-budget themselves or strict cut-backs as an option. But is this a wise option?

Savings lost

For years experts have touted the necessity of having between 3-6 months in emergency funds available. This account was a strict no-access account, meant to deal with job loss or another emergency. A good number of Americans spent months putting away money for their emergency accounts. Unfortunately, due to the recession, many savings accounts are gone. Marilyn Moore of Remington, Montana stated, “We used to have an emergency fund and thought it would carry us through any tough time. Unfortunately, it was depleted quickly…we thought it made us immune to financial problems.” Moore is part of many consumers who saw the emergency fund as an emergency tool, but never planned on having to use it.

Credit card companies in a bad light

After the banking and lending crash, consumers are more aware of finding debt relief than ever. Many are forgoing building savings and putting extra money into their debt. “Paying down debt is a priority with many customers…the recession brought out the bad side in credit card companies and people saw it. They are worried about what credit companies are going to charge them for next,” state Montgomery Rawl, economist teacher at Stanford University.

Studies are showing that people are moving towards paying cash for items, and leaning away from credit altogether. They saw the high interest rates card companies were suddenly charging. They saw their credit limits being sliced. The Obama administration vows to hold companies to a higher standard, but it will take time for those laws to pass. Consumers are opting for paying down credit and using it only for emergencies in the future. As Moore added, “We are not going to get taken to the cleaners by credit card companies when we’re having a hard enough time as it is already.”

Economist Rawl confirmed, “History has proven that when times get tough, people cut back on credit card usage and turn to good old cash for funding. It happened in the 70s and 80s…with this recession more people had been using credit, so that makes a larger sum of people turning their back on it now than ever before.”

Cash is king

Cash is still the most reliable option, according to many consumers. They are using cash to pay down debt and find debt relief, and then vow to use credit sparingly. Many people insist that cash is the most advantageous way to keep track of funds and truly budget. In the recession, every advantage Americans can get, they need to use wisely.

Everyone comes across those times when there is month left at the end of the money but the thought of using short term loans to cover those times doesn’t always occur to everyone. Instead of seeking ways to carry them through until the next payday, they make unsuccessful attempts to prioritize their bills, sometimes failing to recognize the importance of paying all their debts.

Your credit record

Some are often uneducated in the way credit works and think that as long as they pay the payments, even if they are late, it will not affect their credit negatively. They don’t realize even paying late affects their credit rating at least with that company. When you consistently pay credit cards late, the issuer will eventually refuse to reissue your cards when they expire, and this action will negatively affect your credit. To avoid that potential, you need to plan ahead for those times you may need to weather a financial crisis.

Have a backup plan in place before you need it

Another problem many people have is they don’t plan ahead for emergencies by having money in a savings account. Lack of emergency funds leads many people to rely on credit cards to pay for daily expenses and leaves them struggling to make the payments when they charge more than they can afford to pay when the minimum payments increases. Instead of looking for a temporary solution, they resort to skipping payments or paying amounts lower than the lender requires. When the lender starts calling, they become frustrated and try to avoid facing the situation, especially if they don’t have money set aside. It’s always advisable to have the equivalent of two months’ salary in a savings account but during an economic downturn, as we are currently experiencing, most people are struggling just to make ends meet thus leaving them few funds for emergencies.

Don’t let your situation overwhelm you

If you let your situation get the best of you, it will be more difficult to find a solution. Instead of seeking temporary relief with short term loans when necessary, many people become stressed, frustrated and angry—emotions that prevent them from having the ability to do something positive and encouraging. Those who have a backup plan, whether it’s a savings account or a place they can obtain short term funding, will spend less time fretting over their situation and more time taking action. There is no shame in suffering a temporary financial setback but when you let it get the best of you and take no action, it will become substantially worse. Address the problem, find the solution and take action immediately.

Quick action offers the most success

When you discover you are not going to have enough money to pay all of your debts when they are due, you should take action immediately. Don’t wait until the creditors start calling to look for short term loans to pull you through the crisis—the sooner you take action the easier it will be to get back on the right track and the less money you will need to borrow to increase your immediate cash flow.

Being employed means you can still apply for payday loans for emergency funds. These very short term loans get some bad press, but used correctly can be the greatest gift to cash-strapped workers. The trick is to research the terms very well and be sure not to borrow more than you can afford to pay back on your next payday. These loans can make a lot of sense if something unexpected crops up and you know you would have the spare cash when you get paid but just can’t get it together immediately. They should never be used if the loan would put strain on your income and see you short of money.

Don’t set up a vicious circle

It is most important that people don’t overextend themselves when using short term loans. Badly managed, these crunch-time loans can mean continually borrowing to cover paying for the previous amount and still having enough expendable cash to live on. It is wise to remember that any amount will need to be paid back and to only borrow what you can comfortably afford to go without the following payday. Even though it’s tempting to get a payday loan for non essentials, be very careful you don’t put yourself or your family into a worse situation.

Emergencies do happen

Regardless of our best intentions, emergencies do happen. Often they happen at the worst possible time. Medical bills, accidents, car repairs are just a few reasons people look to secure some extra funds quickly. There will always be times when we need money before our next payday. More and more people are living from one payday to the next with not a lot of cash in reserve. And truth be known, individuals should be circulating as much money as they can afford back into their local economy. The economic recovery will depend on this. There are still people employed and when stuck for emergency cash, a traditional loan might take too long to secure.

A good record means fast cash

The first payday loan will be the longest you have to wait for cash, although still very quick and convenient. The lender needs only to verify your employment details with your employer and a few other things. Once approved, the cash is immediately transferred into your account. Online applications make the process faster and more streamlined than ever before. Once paid back successfully within the loan terms, if you ever need another short term loan the process is even faster as the lender already has your details. This alleviates the need for credit checks, or security. There will be a loan fee charged rather than interest.

Are payday loan fees fair?

This is where a lot of the bad press comes from. The fees are often calculated as a very high interest rate in comparison to a traditional loan. However, considering the loans are small and fast, the rates are reasonable. Provided the borrower is not borrowing more than they can afford to pay back, these types of loans run smoothly. Some say it’s much easier for people to get these loans when they cannot afford to pay the money back. Again, it must be stressed to think carefully about any borrowing. If you are in doubt, seek some professional advice or ask the prospective payday loan provider about any concerns you might have.

Where's my check?

If this ever happens to you, remember the option of a payday loan. Yes, it happened to me once, and boy was that tough! I work in a shipping company. A few months ago, something unexpected happened to me. I did not receive my paycheck. Everybody in my company received their paycheck but I was left in a lurch. I came to know due to ‘some technical reason’ my salary was put on hold. Since there was no negative performance on my part, I was flabbergasted, to say the least.

More pay next month won’t help this month

I quickly asked my boss and he said that in the coming month I would be given double the salary plus compensation of any loss I suffered. That would not exactly help me now because every month, the lion’s share of my salary goes into paying my monthly bills, such as the electricity bills, telephone bills, internet bills, mobile phone bills, gas bills, children’s school fees, grocery expenditures, etc. If I don’t receive a month’s salary, then my financial is a mess, which actually happened then.

Strike one: borrowing money from friends

Who would lend me enough money to pay all my bills? I have never borrowed money from my family or friends and I didn’t want to start now.  However I found that I had very few, or rather no, option left to me. I went to my friend Jonathan and told him what I was going through. Because of the difficult economy, Jonathan was also struggling financially and couldn’t lend me the money I needed.  However, Jonathan is a financial advisor by profession and what he suggested was something truly appreciable.

A payday loan

Jonathan told me about a payday loan. He told me that if the loan was approved, I should be able to get the money in a day. He told me about a reputable money lender website and how it could help me get a loan in a jiffy. Since, I’m not internet savvy, I did not take much interest.

Where can I get a payday loan?

Jonathan guided me through personalmoneystore.com’s website and helped me fill out the online application form. Frankly speaking, I was able to get my loan approved in few minutes. I did not have to submit any documents or pledge any collateral against the loan.

They did not even do a credit check. The money lender gave me the flexibility of choosing from $100 to $1,500 as the loan amount. My loan was approved in no time and the cash was transferred to my bank account within a few hours.

Funds in 2 hours

Paid all my bills and now living happily!

I paid all my bills and avoided any late fees.  Paying off the payday loan was no problem, because my employer finally paid me the skipped paycheck.  I am thankful for payday loans to have helped me, when it really mattered.

Payday loans aren’t the only short-term consumer credit service that is growing in popularity with higher-income consumers these days. According to Maria Halkias of The Dallas Morning News, rent-to-own stores like Rent-A-Center (America’s largest) are seeing more higher-income customers than they have in years. This is an expected byproduct of the current recession: Rent-A-Center’s year-end figures actually exceeded expectations.

Similar results have been reported in the pawn shop industry. Such returns have even prompted many cash advance outlet stores to expand their offerings to include pawn services. Some have also ventured into the buying and selling of gold, which makes particular sense when the value of the U.S. dollar is low. Cash America Director of Public Relations Yolanda Walker said people are finding “creative ways to make ends meet.”

Sign of the times

The trend of Rent-A-Center, payday loan stores and pawn shops looks to continue as the economy suffers. The need for credit doesn’t sleep, and more people are being rejected by traditional (bank) financing avenues. Halkias finds that current Rent-A-Center customers have “average household incomes in the $20,000 to $50,000 range.”

Yet with current economic burdens such as they are, renting a replacement refrigerator for $17.99 a week is what the average family can afford. Buying a new one can be a distant dream. Similarly, when emergency funds are needed in a pinch and traditional banking fails to fill the bill, consumers can rely upon payday loans for their speed, convenience and discretion. Moreover, rates that are commonly in the $15 to $20 per $100 range for two-week loans are much more affordable than the distressingly common alternative of relying upon checking overdraft protection.

Nice price, but don't use your American Express there!

Kevin Drum blogs on Mother Jones that there’s yet another reason to rely upon a cash advance when you need emergency funds. Actually, that’s my interpretation, because it’s an easy connection to make. And for many thousands of people, it would be exceedingly more useful than depending upon a credit card that judges you based upon where you shop. Whether they’re attempting to be a social crusader or simply being snooty, American Express is apparently monitoring cardholders’ credit statements closely. If you shop at Wal-Mart, your credit limit could be lowered.

That’s what happened to Kevin Johnson, according to the Atlanta Journal Constitution. He actually received a letter from American Express which stated that “other customers who have used their card at establishments where you recently shopped (Wal-Mart) have a poor repayment history with American Express.” In other words, American Express persecuted Johnson for value shopping. They lowered his limit to reduce their “risk of exposure.” And in other news, misguided legislators are chomping at the bit to take away consumers’ right to choose payday loans when they need extra cash.

What is AMEX’s official response?

AMEX spokeswoman Lisa Gonzalez wouldn’t name any names, but she doesn’t have to, does she?

We’re just doing this to manage risk… customers who have loans outstanding with certain lenders or customers who make transactions with certain merchants tend to have a higher proportion of credit issues or a higher probability of default.

Then there’s American Express spokeswoman Susan Korchak. In a lackluster attempt at spin control, she told the New York Times that it was all “just a big misunderstanding” that the language about “establishments” where Mr. Johnson recently shopped wasn’t a way to single him or anyone else out for shopping anywhere in particular.

OK, then just what are you saying, AMEX?

Denial does not excuse you from abusing the public, American Express. It simply spreads more of your slime on the wall. And if you think people like Kevin Johnson are going to lie down and take what credit card companies like you are trying to put over on innocent people, think again. Mr. Johnson has taken it upon himself to be a consumer advocate against the likes of you. Cash Advance Mojo and his colleagues at Personal Money Store wish Kevin Johnson and like-minded citizens the best in their fight for financial freedom.

Related articles

• Carded: Customers Spied on Then Penalized (abcnews.go.com)
• NewCreditRules Asks, Which Of These Stores Will Get Your AMEX Card Reduced? [American Express] (consumerist.com)
• Credit Card/banks lowering credit limits based on WHERE you shop (americablog.com)

Help in hard times

Welcome back to Part II of this series on “Financial Preservation in 2009,” courtesy of personalmoneystore.com’s payday loans money blog. This series will continue addressing how to prevent financial crisis as a result of unemployment in 2009 by preparing now.

Here are a few things you can do to save extra money today while you still have a job, so that you have the necessary emergency funds you need later this year if you find that you don’t.

Are Those Car Payments Really Necessary?

Nobody can blame you for wanting what is hot or the current trend, but when it comes to automobiles, staying with the current trend can cost you a lot of extra money.

When buying a new car, not only does it require high monthly payments but also higher insurance rates and higher taxes and licensing, delivering one whammy after another to your pocketbook, and needing payday loans to cover for it.

Is this really necessary? Downgrading to a newer used vehicle, or even an older model that has been nicely taken care of and properly maintained, will save you both in monthly payments and taxes and licensing.

You may even be able to trade your current vehicle for an older model that the dealer has gotten on a trade-in. This could get you out of payments altogether.

This should be carefully considered if you are concerned with your job’s longevity as it can save you thousands of dollars which, if saved as emergency funds, could preserve you in a time of financial need.

Downgrading Digital Services

Consumers today are gadget-obsessed, having a multitude of gadgets and digital subscriptions that may be cheap by themselves but add up to a considerable sum when considering other digital services in your home.

These digital services include things such as your cell phone, cable television, digital media, satellite radio or any other of the digital packages available today.

Examine each of the packages you have and decide whether they are used enough to justify what you are currently spending. After your evaluation, you will be able to determine whether to downgrade each respective package or terminate it all altogether.

Debt Consolidation And Payment Insurance

When loosing your job, payday loans are not typically an option due to employment requirements, which means the only funds that will be available to you during this time will be the funds from your unemployment office.

These funds alone will likely not be sufficient to pay your bills, leaving you to pick and choose between which bills you are going to pay and which bills you are not.

Defaulting with creditors wreaks havoc on your personal credit rating. You may have to hire one of the many credit repair services or credit repair companies to help you repair your credit in the event that you do so.

Defaults can take several years to cycle off your credit report, so what you do now will save you both time and money later.

Here are two things you can do now to better position yourself with your outstanding debts so that you won’t be forced to default on any of your current creditors down the road provided you still have them.

Payment Insurance

The first thing you can to is purchase payment insurance through your creditors. Payment insurance will pay your monthly minimum payments in the event that a financial crisis befalls you and you are not able to pay yourself.

The cost of payment insurance varies from one creditor to the next but it is usually a very small sum and is calculated based on the current balance of the account. For example it may be $1 for every $100 dollars of your current account balance.

Debt Consolidation

The second thing you can do is consolidate your debts. Preferably, consolidating your debts into your home mortgage would be the best option if you’re in a position to do so.

With the current interest rates on home loans as low as they are, it may be in your best interest to refinance your debts into your home mortgage.

This allows you to spread that debt over a 30-year term, making the payments far more manageable. You end up spending more in the long run, but it’s a nice safety net to keep you from defaulting with your creditors in the event of limited cash flow.

Lastly, don’t forget about the options we provide you here at personalmoneystore.com. If you find yourself in need of quick cash payday loans to avoid the more spendy late payment fees associated with many of your creditors, we can help. Provided you are still employed, that is.

Good luck in 2009!