Paperless Payday Loans

Getting paperless payday loans is as easy as filling out a short online form and if accepted, having the money in your checking account the same day or the next. Paperless payday loans are also called no fax payday advances and online payday advance loans. In the past, a borrower would have to go into a local cash advance lending establishment and fill out several forms before being approved but the advent of ecommerce has allowed the lending companies of this particular genre to qualify customers through a few short questions and approve a loan in a matter of minutes. Since there are no credit checks made on the borrower and no debt to income vetting like traditional banks and loan companies would do, these lending agreements have become very popular. Making the process even easier for customers by providing paperless payday loans online has also led many unsuspecting people deeper into the world of gnarly and never ending debt.

Paperless payday loans are based on a typical fourteen payday cycle for a typical borrower. While some people are paid each week and some once a month, the usual payback period for these types of lending agreements are fourteen days. For the once a month paycheck borrower and the every week borrower, the schedules for repayment can be adjusted. But typically if a person borrows on a Tuesday, in fourteen days the loan is due to be repaid. So this is how the process works. A person makes an online application with one of the many payday loan providers. Name, street address, email address, name of employer, payday cycle, name of bank, address of bank and size of loan request are submitted by the prospective borrower. If approved, the loan is directly deposited into the borrower's checking account within twenty four hours.

In fourteen days, the payback amount is expected to be in the checking account for withdrawal by the lending company. Paperless payday loans have very high interest rates in most states, so for the short amount of time the money is lent to a customer, the company makes a nice profit. However, as expected, these lending companies have a very high risk of non-payment for some customers. This means that money is gone and may be very unlikely to ever be collected. This scenario is one of the reasons given for the high interest rate charged to all customers. The amount a lending company of this nature may extend to a customer is regulated by state law, running from about eight hundred dollars in some states to one quarter of a person's monthly income in others. The real difficulty for a customer who gets one of the payday loans available online or down at the local cash advance store is when the loan cannot be paid back on time.

Suppose that a young single mother has a minimum wage job and is getting only a small amount of help from the government to help with her children's expenses. The young mom breaks her ankle while getting off the bus after work one evening and must be off work for two weeks. Immediately, the mother faces the prospect of half income for the coming month and panic sets in. Before we get too hard on the woman, keep in mind that seventy percent of all Americans by some estimates live pay check to pay check which means no savings. Her local church will help her with groceries, but the utility bills and some medical expenses from months past are due. The woman applies and gets one of the paperless payday loans available online. She only asks for two hundred dollars and it will be due on the day of the first paycheck two weeks after coming back to work.

But the medical bills, utility bills, the telephone bill and the rent are also due within three days after her paycheck arrives. The mother calls the provider of the paperless payday loans that extended her the two hundred dollars and tells them she must extend the lending agreement another two weeks. They agree, but The young woman must immediately pay the interest and the costs related to the original loan, amounting to about fifty dollars. The mom must then pay the loan at the next arrivl of her paycheck with new interest on a new loan plus costs related to the first loan. The young mother will owe about three hundred dollars at the next payday. What if she cannot pay that back? Some state laws allow eleven hundred percent APR on loans not repaid, meaning she could owe twenty two hundred dollars on that loan if not repaid within the year.

Because so many Americans live paycheck to paycheck, the idea of getting easy, online paperless payday loans will become more and more popular. Rather than resort to these kinds of abusive usury, God wants His children to turn to Him for help. "Then ye shall call upon me and ye shall go and pray unto me, and I will hearken unto you." (Isaiah 29:12) But sadly, many people do not learn spiritual lessons well and feel compelled to abuse credit in such a way as to further increase their servitude to lending entities. With the personal debt of all Americans reaching into the tens of trillions of dollars, the danger of being unable to have any freedom to have discretionary money grows dimmer and dimmer. Perhaps the proverbial chickens are getting ready to roost.

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