There are various types of loans available in Las Vegas for those who are looking forward to getting some quick money to spend at the casinos. However, high fees and unfriendly collection practices made the payday loan lenders a target of the consumer protection regulators.
JPMorgan Chase (JPM) recently announced that they will limit the overdraft fees from payday lender payments, which will make it easier for the customers to close their accounts and issue the stop-payment orders of payday loans on check. There was a New York Times article some time back reporting of such adverse practices of the many US banks even in the states where such things are illegal.
In Las Vegas, a city where you can find easy modes of spending off what you have in hand, most of the payday loans are gone to individuals who want to spend extravagantly, and thus the defaulting rate is so high. On the other hand, the big banks also cannot stop the cycle of financial devastation caused by payday loans. In light of this, it is the responsibility of the borrowers to avoid mishaps. Further, we will discuss a few ways through which you can steer clear of the troublesome payday loans. Understanding the debt consolidation meaning may also help you prepare and stabilize your finances.
- Ask the lenders for assistance
The creditors generally have a bad reputation for being a bit hard-nosed and almost impossible to negotiate with, but this is not the actual fact now, they are very much willing to take all possible steps to help the debtors if there is a chance to increase the likelihood of getting their loans repaid fast. Most often, the debtors may also get repayment extensions which may help them with the short-term cash situations. Even if there is a need to pay the late fee, it may be most of the times lesser than the charges of payday loans.
- Always shop around
With various types of lenders and loans available, most of the times, you may be having options to get cash advance cheaply from some sources than considering payday lenders. There are a lot of credit unions in Las Vegas and small finance banks that offer unsecured loans to individuals as well as business customers.
The rates of these may not be as low as the typical auto loans or home loans. However, it can be quite lower when compared to that of payday loans. Sometimes, even the credit card advances may be costing you lesser on a long run despite the upfront fee for transaction and the higher interest rates.
- Consult a pro to choose debt consolidation
Consumer credit is something which always confuses the fellow debtors. There are many counseling service consultants and nonprofit organizations in Las Vegas that can help to improve your credit rating. Debt consolidation is an ideal option if you are troubled with multiple payday loans or these in combination with other payouts like credit card payments or mortgage payments. Experienced credit counselors study the market and help you in properly planning your finances. They also help you find ways to work on your budgeting to get rid of debts over time.
If you are troubled with a financial rut, payday loans may seem to be an easy one-time fix initially. But, what you have to do is to seek all alternate options with the benefits and drawbacks of each weighed against payday loans to take an informed decision.