With the terrible recession just gone by and its shadow still lurking around, a lot many families are finding it hard to even have enough food for the day. How can such families be expected to put away a little of their income when they are still struggling with what little that they actually have?
These are the people who have difficulty in paying their monthly subsistence bills and their provisions and other costs are half the time unpaid and not bought for lack of funds. They may also be a victim of losing their job without any notice period being offered to them. what can they do when they have an emergency to handle. What would happen if there is a medical expense that can drain their finances further? Click here if you have no idea What To Do If You Can't Make Your Car Payments | Credit.com.
Usage of credit cards and the debt cycle:
Normal people would use a credit card to come out of such a sticky situation, but consider these people who have no regular source of income and that only means that when the stipulated credit period for paying up on the credit card arrives, they have still no money left to pay their debts and the debt is further compounded with extra interest and penalty for defaulting. This way they can never ever come out of a vicious debt circle. They will be trapped for life!
Therefore, using credit card is definitely not advisable in such cases. What they should do instead is to identify a safe payday loan lender and apply for a short term loan. The need of the hour is of course to search and to identify a safe lender. There are cases of notorious people who lend at usurious rates of interest which has the ability to push this segment of people to the brink of even terrible things for instance suicides!
How to identify a safe loan?
A proper and a safe pay day lender is a licensed one. Because he is licensed, it means that he follows all the rules and regulations that are laid down by the Central and the Federal Government. One thing is sure that if he is a licensed lender, he will only charge the average percentage rate of interest.
You are bound to find payday lenders dime a dozen:
When you look around for lenders of small amount, there is a chance that you will find scores of tem all ready to lend you small amount of cash at small period of time. However, the catch is to know that they are safe and not fraudsters who will charge you usurious rates of interest.
Using the internet as a tool for searching:
The internet can be a great tool for finding out about the payday lenders. A great indication of whether the lender is a state licensed one or not is to log on to his website and look out for the expressed term that that particular lender is licensed by the state or the federal government to sanction loans according to the provisions of the law.
This is perhaps the only way you can tell a safe payday lender from a scam!
What do you do in case of doubt?
Say you realize that this Yigor Property which is a hypothetical payday lender mentions on his website that it is a government recognized payday loan lender. But when you notice his higher than market rate of interest, you have you own doubts. What should you do in such a event?
The answer is simple. You can verify the information about the lender by contacting the attorney general of the stat where your domicile is. Keep this information in mind that a lender belonging to one state and having a license to lend will not necessary be allowed to and licensed to lend in the other state.
Other safe borrowing place:
If you have not heard about paydaypixie, let us tell you that it is pone f the most reputed companies also in the business of providing cheap and best payday loans. For example, there is http://www.paydaypixie.co.uk/which not only provides small loans at the APR which is set by the federal agency but it also is a safe and reliable lender as far as securing your personal data is concerned.