1. Sudden Emergencies.  We’ve probably all been in unfortunate jams – blown tire, water heater breaks down – and having access to quick cash would be a life saver.
2. Unexpected Expenses.  Ever go to the dentist for a cleaning only to find out you’ve got a cavity?  Or how about a phone bill that’s higher than expected? These situations are less urgent than an emerency, but often leaves you flat-footed and needs to be taken care of quickly.
3. Small Bridge Loan.  This is the classic “ran out of money before I ran out month” problem, and having access to short term loans is a bit more appealing than going hungry.  But be careful – if you find yourself in this category for many months in a row, it’s a sure sign you’re living “above your means” and needs some active management to get things back in line.
4. Family Security.  Some would disagree with this, but I personally think that every member of your family who is out alone needs to have a cell phone for personal security reasons – and for parental peace of mind.  If you don’t have the extra cash or prime credit to get phones, I would personally borrow money to outfit my family with mobile phones.
5. Building A “Sub-Prime” Credit File.  Everyone has a credit file with the “big three” credit reporting agencies, but short term lenders don’t look at them – if you had a good “prime” credit score, you would just borrow from a bank.  But did you know that there are credit reporting agencies for “sub-prime” creditors?  It could be a good idea to start establishing some history with one short term lender (one with flexible repayment options, APRs as low as possible, and great customer support) just so you have a “rainy day” source of short term loans when needed.  Start small — a $100 loan is a good start — get yourself on a payment plan if one is offered, and pay it off over time.  Then do it again, at $200, again at $300, $500, etc.

Just one caution with short term loans:  only work with one lender if at all possible.  Why?  Because just like credit cards, short term loans are a slippery slope and once you have two lenders, there can be a strong urge to start “robbing Peter to pay Paul” and that’s the beginning of a very bad story.

So – short term loans do have their value, even if you don’t need them right now.  In today’s ever-changing economy, it would be a good idea to have a a back up plan for life’s little surprises.

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If you’re looking for a loan, it can be daunting to need to borrow money. The triple digit APR, the shady websites and the half baked customer support.

No amount of fussing or worry is going to fix this. in the long run, you’ll need to improve your financial management (You’re smart – you know how). However, If you need a short term loan now. Try ResponsibleLoan.com.

ResponsibleLoan.com does the important things right:

1. Show you the total cost of the loan before you ever enter any information about yourself.
2. Pro-rated interest to give you the chance to save some money
3. Offer flexible payment options to fit your budget
4. Treat you fairly

Short term loan from ResponsibleLoan.com

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The continuing downward spiral of the economy is putting new pressures on underwriting customers. Customers are either brand new to the payday / short term market or are so far in debt with short term loans they represent a huge credit risk. Here are some tips to keep your account yourself out of the crazy debt cycle.

• Work harder / Earn More: Yes, working longer is… more more. However a temporary second job is sometimes needed. In the 80′s my dad worked in an oil field at night. Sometimes, you need to do what needs to be done to help your family.
• Spend less: This isn’t fun either. There are hundreds of way you can save on bills and cut down non-needed expenses. Keep your budget tight.

In the end. Money management is like a diet. Sure there are fads and quick fixes, in the end making more and/or spending less is the only fix. Start now.

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In the short term loan world there are lenders, re-sellers, good guys, bad guys and everyone in between.

We like the good guys. The guys who do the hard work and make sure they have an honest product. If your looking for a short term loan and need some options – Check out ResponsibleLoan.com

ResponsibleLoan.com - Short term loans

-Jim

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Sounds easy? It is.

Do your homework and research before you give a stranger your information.  You may feel rushed and hurried, but a few minutes of thought will do you justice in the end.

So many customers have to change their bank accounts after applying for multiple payday loans. Why? Payday loan companies make extra money by selling or renting your information. It’s not nice and its barely legal.

Interested in a company that:

1) Never sells, rents or gives access to your information

2) Treats your respectfully

3) Has a great loan with flexible repayment options

Try the guys at responsible loan – Short term loans

Apply now!

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• First off, you had one extra day of not working to spend some money. That’s enough to hurt your checking account all by itself.
• Secondly, banks have an extra day of processing (They still do some processing on weekends and holidays of automated transactions)

You potentially have a double whammy of more spending and more automated payments coming out the following business day.

Take a few minutes today and make sure you have enough to cover your 4th of July festivities.

ResponsibleLoan.com Short term loan

Be safe !

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However, please (I beg you) take a few minutes before applying and ask a few questions of your potential lender. You know… The person who you will be giving your personal and banking information to? I know this may shock you, but not everyone on the internet asking for your checking account is a good guy. =)

Do the following before applying. It will take less than 5 minutes and then you can be on your way to entering your information in the application

1. Read the website. Especially pay attention to any fees and pricing information.

2. Look for a contact method for the company and send them an email or call (if you find a number). Just say “hello, I am thinking about applying”

3. Do they tell you the price of the loan before you apply? (this is a big one… pay attention)

4. Are there a lot of confusing check boxes on the site? (If so, watch out – you could be signing up for a service you don’t need)

Above all else, use common sense – There are far too many options to get cash quickly than risk your bank account to someone you do not trust.

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If your looking for a company that has the following in a loan product, you should try the guys at ResponsibleLoan.com

• Shows you the cost of the loan before applying.
• Does not charge NSF fees
• Has a very low rate (Compared to the industry average)
• Has no hidden fees or charges

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Being a short term lender is a rough business. I am not trying to gather sympathy or a ‘poor me’ vote. I am simply saying that with the increasing smart fraud rings, government oversight and very high demands of good consumers. (Good being defined as customers who apply for a short term loan with intent to pay the loan back) the business is getting harder to make profits.

What did he just say? Hard to make profits at triple digit APR? Yes. Very hard.

Here is why:

• Fraud rings are fast moving and hard to spot

Fraudsters are very good. They steal identities that look very good to underwriters. They have access to bank accounts and have started to recruit industry insiders to learn how to beat the system. I would say that about 10% of loans are taken by a person who has no intent to pay the loan back.

Some quick math:

If a company makes $100 in loans and loses 10%, they must make 10 dollars in profit to                  cover that loss. That $10 in profit is coming from good paying customers. Not to mention that          booking the bad loan costs about $4 dollars for processing the loan. (This $4 dollars includes 3rd          party calls to credit agencies and labor for reviewing applications, customer support, etc)

So, out of $100 in principle loans – a company losses about $14 to fraud.

That’s not bad  - certainly not enough to prohibit profitability.  Moving on.

• Good customers sometimes have problems

The simple fact of this problem is – Customers who need $250 loans, have checking account problems that need to be resolved. They go negative sometimes. As the economy trends continue to be poor. Customers 2nd + default rate continues to rise. (2nd + default rate is an industry term used to define a customer who makes a good first payment and then fails a 2nd or other payment)

2nd pay default rates have increased from 5% a few years ago to north of 10% . So, good customers are defaulting on part of the loan.

What options does a company have? If a customer says “I do not have money in my account” can any company really even attempt the payment in good faith? No.

It’s important to note that good customers usually do make good over time. But at a reduce yield. The money loaned stays out longer and returns less revenue – lowering effective APR.

This accounts for a 10% loss in revenue + the $14 from fraud. That leaves less profit then industry critics would like to admit.

• Keeping the lights on is hard

Government oversight is good. I believe it needs to improve. Consumer awareness of the high interest rate and the impact of payday loans and short term loans need to be burned into the minds of the consumers who use them.
However, lacking federal law has put the states in charge of regulating this industry and they are not able to handle the complex company structures and laws that companies hide behind. Also, the sheer volume of different state laws makes good law abiding companies put forth very complex systems to report usage, calculate complex state by state loan limits,  APR, max pricing, max loan amounts, and notification to spouses just to name a few.

State by state products are expensive to build and maintain – requiring large development staff which are expensive.

A Company who does right by its consumers will make less than 20% profit in my experience. 40% of revenue will be loan loss, 20% will be operating expenses – which leaves the 20% of revenue as profit. That is not out of line with other industries.

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