Personal Note from Clyrese
Before my husband and I got married in 2014 we went to Unclaimed Diamonds, in Philadelphia, PA, to purchase our rings. Great company. The associate was very helpful as we shopped around for our rings. Because I had poor credit, he had good credit but low income we had to purchase our rings on credit through a bank out West. The only requirements they had were a steady income and a checking account. They also required to participate in automatic payments. A blessing for us right? Yes at that time. We were dispirit. We wanted nice rings and to get married soon.We were doing very well for the first six months until our finances became tight. We went through the proper channels. I called them, communicated with them letting them know I would not have the funds for them to take the money out and extended my due date because we were going to mail the payment. A few days after my payment I noticed the payment was withdrawn, while their payment was on the way. Needless to say they overdrawn my bank account. I immediately called them telling them not to withdraw the next payment. I couldn't afford it with the additional fees they accumulated in my account plus our current monthly payments. They did it any way. This type of problems continued for months until I was able to afford the $25 fee my bank charges to reject and activity from my account, three months later.
Now we are back on track in our bills.
Pro & Cons of Pay Day & Cash Advance Loans
Pros
1. Relatively easy.
2. Most of the time credit checks are not necessary.
3. Approval is fast and funds are dispersed quickly.
4. No collateral required.
collateral- money used as security
5. Often required less paperwork than conventional loans.
6. You can find them either close to home or on the internet.
Cons
1. They are expensive with an interest rate ranging from 300% to 500%.
2. If not paid on time the loan can quickly lead to soaring debt and/or fees.
3. Companies utilized unscrupulous, unethical and sometimes illegal means to collect debt.
4. Does not supply short term budgeting problems and often only offer short- lived solutions. Only long term effects are stress and aggravations.
5. They are illegal in some states.
6. Contracts favor to the lender rather than the borrower.
7. When collecting debt they resort to unscrupulous and unethical means.
Alternatives to Pay Day Loans
1. Small loans from credit union or small loan company.
Some banks offer small loans or cash advance on credit cards. Cash advances may have higher interest rates. Shop around for what's best.
2. Communicate
If you are having trouble making your next payment ask for more time. May work with those based on good faith. Be sure to ask if there are additional fees with this service.
3. Contact local credit counseling services
Non-profit organizations offer credit counseling for free or with a low cost.
4. Find out if your bank offer overdraft protection
If you use the funds in your account often you may make a mistake in your records and accrue return check fees per transaction in your account. With the protection it could save you a lot of money. The bank will pay your transaction for a fee. However, you don't want to get in a habit of using this because NSA is can hurt you in the long run. When you going to make a large purchase like a house, mortgagors frown upon NSA fees. They stay on your bank statements for one year.
5. Make a realistic budget
Include monthly and weekly expenditures and PLAN! Try to avoid unnecessary purchases like a cup of coffee or buying lunch everyday. It adds up. A saving plan will help avoid emergencies where you may have to borrow from friends and family or use the famous saying, "Rob Peter to pay Paul." If you do not know how to do that Financial Bondage Broken, LLC will coach and assist you on how to create a budget. Right now we have a sale going one! If you are reading this you are in luck! For the 1st 50 customers you will receive a 50% OFF on our Restore Program. A $150 value for $75. HOW AWESOME IS THAT!!! Contact us TODAY and receive a free consultation.
Contact Clyrese Minor, Owner/CEO via email by clicking on the link below. In your email include the following information:
Full Name
Phone Number
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***PLEASE LEAVE A COMMENT WE WOULD LOVE TO HEAR YOU THOUGHTS AND DISCUSS YOUR EXPERIENCES WITH PAY DAY LOANS AND CASH ADVANCES***
