Payday loans can also be referred to as a cash advance or a payday advance. The main goal of most people acquiring a payday advance loans is to get through the month until their next paycheck. Again, most people get a payday advance loan if they happen to get an emergency and need cash instantly.
Various states in the United States have various policies on payday advance loans. In NE, payday advance loans are legal.
The maximum amount that a lender can give out is $500. It is usually a hassle free process and one can have the money deposited into their checking account within 24 hours of borrowing. Because it is an unsecured form of borrowing, you do not have to worry about credit checks and investigations being done by the company. The finance charges should not exceed $15 for every $100 that is lent. There are a number of stores under various companies that provide payday loan in Nebraska.
In Nebraska, the maximum number of cash advance loans one can have simultaneously is two. The total of these two loans should not exceed $500. The maximum repayment time is 31 days. Rollovers are not allowed in NE a rollover is when you have paid off one loan and you decide to renew or refinance it again using the proceeds of your previous loan. The APR for a two week loan is 459%.
It is required by the law that the lender clearly displays his terms and conditions of Payadvance loans in his store. This is to avoid exploitation of borrowers and to provide as fair circumstances as possible. The lender should also clearly explain to the borrower and agree with them concerning the APR before the loan is advanced. The APR shows the amount of interest per year that the borrower is required to pay.
In order to qualify for a loan, some of the requirements include, one should be at least 18 years old and have a savings or checking account. Again, one should be a US citizen, but not in the military. You should also have a regular source of income and earn at least $ 1000 monthly. One can use payday advance loan services as often as they like. However, this is not recommended in the long term as it can financially cripple you.
In case of default and the borrower is not able to pay the loan within the recommended 31 days, most lenders are willing to extend the credit for another 31 days. However, you cannot be criminally prosecuted for not paying a loan.
The recommended step to take if one knows that they will not be able to repay the loan is to talk to the lender before the due date of the check and ask for an EPP (Extended Payment Plan). What happens is that the payment plan gets broken down into four repayment plans, which usually coincide with the borrower’s payday until the loan is paid off. A late defaulter’s fee of $15 can be charged once by the lender.