Direct Payday Loan

Obtaining a direct payday loan can be a reasonable short term answer for consumers who are trying to make ends meet. When that paycheck just can't seem to arrive fast enough, looking into a speedy financial alternative when times get tight can provide an effective quick fix. Not to be regarded as a permanent solution for bad fiscal habits, these loans can, however, help a struggling borrower see a little light at the end of the tunnel. The responsible borrower will, of course, pay off the debt as quickly as possible. Continued refinancing of expensive short term loans can lead to financial disaster. Most applicants find that obtaining a direct payday loan is a simple, private and time friendly process. There in can lay the danger. Approval for these loans may be friendly, but if a borrower has a problem paying the loan off within a certain length of time, things may not stay so friendly. Climbing interest rates and added fees can increase the amount of debt at an alarming level.

Even the most careful and responsible individuals can find themselves facing an unexpected financial emergency. The direct payday loan is just one of many possible solutions that a potential borrower could consider in the event of such emergencies. The amount of money granted for these loans will generally start out at around three hundred dollars or less. With each responsible use and pay off of these loans, more money is available for borrowing. This practice may encourage the potential borrower to keep coming back to the well, which may not be a wise habit to get into. Most lenders will make sure that any funding that is approved by five p.m. on the previous business day will be made available on the next business day. Weekends and holidays can slow things down, so anyone who is beginning application procedures on a Friday should expect to wait until the following Monday to receive any funds that they have been approved for. Some lenders will ask borrowers to submit something called a payment request two business days prior to the day that the borrowed funds are due.

The direct payday loan is basically a type of electronic funds transfer. Many individuals receive pay checks and other income automatically into their checking or savings accounts rather than going through the paper work of receiving, cashing, and depositing a physical check. The direct payday loan takes this technology and uses it to quickly and conveniently provide short term financing for individuals who qualify. The convenience of having cash deposited or withdrawn directly from a consumer's bank account has greatly changed the way that many companies and individuals do day to day business. Most banks and financial institutions have the capability to accommodate electronic funds transfers and will present no obstacles to the lender or borrower in these cases. Due dates are usually established based on when the borrower's next pay check will arrive, although this practice may vary. Still and all, many borrowers are happy to have several options available when they are in need of financial help. The Bible talks about the importance of seeking God. "If my people, which are called by my name, shall humble themselves, and pray, and seek my face, and turn from their wicked ways; then will I hear from heaven, and will forgive their sin, and will heal their land." (2 Chronicles 7:14)

With all the appearance of easy money, there are some reasons why a potential borrower would be turned down for a direct payday loan. Some lenders reserve the right to turn down, or at least reconsider an applicant who has filed for bankruptcy within the past twelve months. If an individual has not had a bankruptcy in the past year, but has experienced multiple bankruptcies, this may be grounds for denial as well. If the applicant is unemployed or has only held down their current job for a relatively short period of time, that individual may not qualify. When a potential borrower's checking account has only been recently opened, this will not work to their advantage and may result in being turned down for financing. An overdraft in a checking account or a record of unpaid short term loans can also disqualify an applicant. If an individual's net income is less than one thousand dollars per year, they will most likely not be considered a good risk and will therefore not qualify. Invalid information or an inability to provide proof of identity will certainly result in denial. Some lenders will also not approve borrowers who are paid on a monthly basis.

The due dates that apply to the direct payday loan may run on a ten to fourteen day cycle. If a borrower finds that they cannot pay the loan off in full, they will sometimes be given the option of paying the interest and fees on the loan only. An automatic refinance will generally follow an inability to pay. A borrower can expect to see many new terms associated with this refinancing including higher interest rates and additional fees. Pay off amounts might surprise the borrower. For example, if a sum of three hundred dollars was originally borrowed, the amount to pay off this debt may be somewhere in the neighborhood of three hundred and seventy five dollars. This figure will include all accumulated interest charges and fees. With this kind of debt escalation, it is easy to see why the direct payday loan may not be the wisest approach to a financial emergency.

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