Don’t Bounce Your Payday Loan Check in NC

When you write that payday loan check, you know that there isn’t money in your account to cover it. That’s the whole premise of the payday loan: you make a promise to pay the loan amount plus a fee at a later date in exchange for some cash today. It’s not like writing a “bad” check, because you have a written agreement with the payday loan company about when that check will be deposited.

Unfortunately, there is still the possibility that the check could bounce. If you don’t have enough money in your checking account on the day that the payday loan business is going to cash the check, it could bounce.

Now, you need to fully understand what that entails. When a check bounces, you’re going to be charged some fees. You’re going to be charged anywhere from about $20 to $35 by your bank. Most banks tend to gravitate toward the higher end of that range, of course.

In addition, you’re going to be charged a fee by the payday lender for the bounced check. That fee is above and beyond the payday loan fee. That fee is regulated by state law, but usually maxes out at about $35.

Now, where things can really get screwy is that a check can be again presented to your bank for payment by the payday lender. When the lender presents that check again, you will be charged a fee again by your bank. The maximum number of times this can usually happen is a total of 3 times.

So, let’s say you borrow $200 from a payday lender. You write a check for $230 to cover the fee. If you don’t have money in your checking account, you could be looking at a total of $30 for the fee, $35 for the returned check fee from the payday lender, and up to three charges each of $35 from your bank. That’s a total of $170 in fees and charges, just to borrow $200.

The bottom line here is that bouncing your payday loan check is never a good idea. If you aren’t going to be able to cover the check, you should talk to the payday lender. Having to renew the loan and paying another loan fee is far better than paying the returned check fees.

Good Spending Habits Help Avoid Payday Loans

We live in a consumer driven world. Marketers tell us what we need. Friends tell us the latest cool toy they just got. It is a smattering of newness. Yet, you are strapped for cash and you want a new iPod. So how do you avoid going to get a payday loan to snag one of those shiny new iPods? We are about to tell you!

Freeze your credit cards

Credit card debt is a killer. Before you rack up the debt on that card and then go running to get a payday loan to pay it off try freezing your credit cards. Yeah, put them all in a bowl of water and then freeze them. This means you have to thaw them out before you can use them

This helps because as the card thaws you have time to think about that purchase. 9 out of 10 times, you will come to the conclusion you don’t really need that new item. Put the cards back into the freezer and take pride in knowing you can save up money for that new toy.

Budget a blow fund

A blow fund is money set aside to blow away as you please. You must budget this amount and stick to it. It might cause you leagues of pain to sit down and budget, but doing so will help you avoid worlds of great pain in the payday loan building.

Now that you have a blow fund, you can freely spend that money on what you want. You will have to save that blow fund if you want a new toy that is more than your blow fund currently has. Using a blow fund will help take the worry out of what you are spending money on.

Use the envelope system

There is this long lost art of using envelopes to budget money that seems to be in memories past. Time to correct that. Here is what you do. Get some envelopes and write down what they will be used for. Items like groceries, blow fund, movies, videogames and so on. Now you put money in these envelopes. The money in the envelopes is what you can spend. You are done spending until it is the correct time to restock the envelope.

Trade some labor for quick cash

So, your envelopes are empty and you really want to see that new movie that just came out. Don’t hit up the payday loan service. Go help a friend paint a room for $5. Offer your expert trade skill services in exchange for a few envelope bucks. You spend more time with people and you get to fill that movie envelope with a bit more greenbacks. You might even snag a free meal as well. Score!

It sucks having to wait for new toys. We have become a society of want it now get it now. There is more satisfaction in that new toy if you pay for it with your own money. Avoid the urge to snag a payday loan to buy that new toy. You’ll be happily richer as you did not just pay the high financing charge the payday loan shop was going to charge you. It is full of win!

Are You a Danger to Yourself?

Some consumer advocates and some law makers seem to think you are. They seem to think you need a federal “consumer financial protection agency” to watch you, to watch the way you spend your money and how you borrow money, just in case you made a financial decision that they don’t particularly thing is wise.

What’s really screwed up about this is that, according to the L.A. Times, the agency wouldn’t even apply to some of the most controversial financial businesses in the country: payday lenders.

This is another example of lawmakers assuming that you’re a moron, suggesting that they can fix the problem, and then ignoring some of the most important and obvious parts of the problem.

We all know that payday lenders charge seriously high rates. Their rates are usually about ten times what any other form of credit has. Very few people who walk through the doors of a payday loan business do so under any illusion that they’re not going to be paying through the nose in interest.

Yet, they still do it. They want or need a quick way to get cash, and payday loans offer that kind of service. They offer that service to customers who have largely been forgotten by the major financial institutions and structures, which is why they can and do charge such high rates of interest.

At stake, as well, is the current way that payday lenders are regulated. Today, payday loans are governed under state law. That means that Arizona, for example, can take steps to essentially rid their state of payday lenders if they don’t want them. Another state can make it easier for them to operate.

Whether or not Washington ought to have a say in the matter is part of the bigger question. Folks who are opposed to payday loans, however, usually believe that they ought to be done away with everywhere, and so push for the kind of federal financial regulation and meddling we’re talking about here.

The issue surely isn’t going away, and it will be interesting to see what kind of progress, if any, payday loan opponents are able to make at a federal level. If they can’t seem to get the job done in Washington, they will most certainly head back to state capitals to try to get individual states to shut down payday loan businesses.

Bum a Buck, Get Some Fries

Bum a Buck, Get Some FriesTimes are tough all around. Banks are stingy, businesses are watching their bottom dollar like crazy, and people suffer the brunt of this. What are you to do when you just need a bit of coin to get by for the week? You could hit up one of those payday loan services, but then you would be paying an outrageous interest rate. You could go to the bank and attempt to get a small loan. Here are some better ideas.

One of the easiest things to do is stop eating out. Sure, that dollar menu at your favorite restaurant might be a grand idea, but it takes its toll on your wallet slowly. For the same amount you would spend on that dollar menu over two days, you could get a loaf of bread, some lunchmeat, and some fruit or veggies. Sure, it is not as easy, but the price per meal is cheaper and it is healthier for you in the end.
Next up is to do a rotating lunch with your friends or co-workers. At first this might seem like somebody will get shafted, but if worked out well this can be a very useful way to get a free lunch. You will need to work out the places of eating, who pays when, and try to keep the same amount of people going every time. Once this is established, one person will pay for lunch and the other take advantage of that hospitality. Remember this when it comes to your time to pay.
If you need more than lunch, you could barter your time for a few dollars. You might think this to be foolish, but you would be amazed at how many people are willing to pay a few dollars for a bit of work. Just ask around your circle of friends, or co-workers, if anyone wouldn’t mind the use of your services. Manual labor is the easiest thing to trade for a bit of change. Trading your skilled services works out even better. No matter how you shake a stick at it, this can be the easiest burger you have made.
Lastly there is the bumming a buck method. Nobody really likes this because it is so hard to do, especially for men. This is just simply asking someone for a bit of cash to get by until your payday. This is much better than going to a loan place as a loan from friends or family will usually be interest free. Keep the asking to a minimum and you could be surprised at how willing people will be to snag your lunch or put some gas in your car. To sweeten this deal, make sure you pay them back as soon as possible. If you can, give them a bit more as a way of saying thanks.
These are just a few suggestions to help you in these trying times. It might always look like the grass is greener on the payday loan side of the fence, but there are often ways to keep from jumping the fence. Payday loans have their place, but that place is in a far away land.