Can I get arrested for default of payday loan?

I don’t think so. I haven’t heard anyone getting arrested due to default of payday loan. But there are certain things that you should know which can help you in dealing with the payday loans.

Payday loans are regulated by the payday loan laws of the state. Please check the payday loan laws of your state here. But there are some states where payday loan companies operate as Credit Service Organizations (CSOs) to avoid the regulation of pdl laws. Some of those states where many payday loan companies operate as CSOs are listed here. To know more on payday loan companies acting as CSOs, read this information.

What happens if you don’t pay a payday loan?
I have come across this question many times. To answer this question, first of all I have to tell some basic points. You can get a payday loan either from a store front or an internet/online payday loan company. Both of these are regulated by laws. To know more, read along. Read the rest of this entry »

Right from the day I heard about the Economic Stimulus Plan of President Obama, a question was popping up in my mind – is it going to help Americans? How?

To understand the efficacy of the Obama Economic Stimulus Plan, we have to understand the rationale behind it.

Economic stimulus – what is it? Is it necessary?

According to Congressional Budget Office,

During economic recessions, it has been observed, that people don’t have the money to buy goods and services. If they don’t buy then demand for these products fall. Thus supply of goods and services, already produced, increases in relation to demand leading to excess supply. From the demand-supply theory of economics we know that price falls when there is excess supply of goods and services in the market. In this situation corporations make less profit. Thus, they resort to cost-curtailment through layoff of workers leading to less money in the hands of common people.

In this abnormal market situation, the only thing that can save the economy is to boost up demand. It means, give more money to people so that they can spend it to buy necessities and luxuries. Once they buy, demand for goods and services increase. Corporations try to produce more such items to meet demand. More and more workers get employed and thus they get more money in their hands to spend. Hence, the market expands. The only way through which this can be done is through economic stimulus plan.

Obama Economic Stimulus Plan – how can it help you?
Senate has approved an economic stimulus of $789 billion which is expected to generate demand in our economy to bring it back to normality. Here are some points that can help us to improve our lives.

Read the rest of this entry »

What are the reasons due to which we are in such a position?
Let us analyze the problems which led our economy to this situation.

Main reason behind current US economic crisis is our over dependence on credit. Growth in US economy during the 1990s was mainly due to credit driven consumption by American people. Economic data shows that National Consumer Debt has more than doubled from $789 billion to $1.6 trillion between 1990 and 2001. Mortgage loans and credit card debts increased tremendously. Debt-Income ratio shot up from 67% during 1960s to 95.6% during 1990s.

The US economy received the first shock during the dotcom bubble burst and subsequent stock market crash in 2000 which led to a severe recession in 2001. Finance capital flew out from the IT stocks but soon found resort in the housing market. More and more investment in the housing market led to real estate boom and helped the US economy to recover.

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There are many Debt Settlement companies in USA. But only a few are good ones. Now, how can you find the best out of the lot which can effectively get you out of debt? Here are some basic checklists that can help you to select the best debt settlement company among many.

Accreditations from reputed Associations and Agencies

The first and the foremost criteria of best debt settlement companies are its Accreditations. If a company is listed with good accreditation associations/agencies like BBB, TASC, USOBA, D&B etc then the company is considered to have reached a benchmark standard in the industry.

There are many accreditation agencies which rank settlement companies in accordance with their reputation in the market. For example, BBB gives rating to debt settlement companies. Rating to a settlement company is given on the basis of the complaints received against it and the number of complaints resolved by the company.

Does the Debt Settlement Company has certified and qualified (IAPDA) professionals?

Debt Settlement process needs special skills and technical know-how to negotiate effectively with the creditors or collection agencies. IAPDA certified professionals have the proper and clear understanding of the legalities associated with settlement. Thus, they are better equipped to help you out of the debt situation with better results.

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Question of the Month:
Question of the Month is yet another effort by the debtcc team to enhance the community knowledge bank. It’s a monthly contest and every month a challenging question will be thrown before the members for responses. The best answer will be chosen collectively at the end of the month by the debtcc members and the admin panel of the site. The winner of this contest will receive a handsome reward of a $50.
The purpose behind this idea is to encourage the members to share their real life experiences in dealing with the financial challenges.
Though different financial issues are being discussed across the debtcc board, but it doesn’t leave much scope to the members to share their personal experiences. Here is the place where it can be done, and also that the new members can get the innovative ideas to deal with their debts along with the conventional ones.

Latest Question

Question 5: If you win some contest and get some extra cash from prize money then what will you do with it?
Many a times we participate in contests. Suppose youve won such a contest and got the prize money. How productively can you use this extra money during this current economic crisis? Share your plans.

Winner Post

Answer 1: It would depend on the amount won. However, I would first make sure that I had a roof over my head, utilities on, and food in the house. Then, I would use the amount to start my emergency fund. I have learned from this website that it is important to have an emergency fund so that I would not have to make bad financial borrowing decisions when something comes up like a medical expense or car repair. I want to set myself up for a bright financial future.

Answer Posted by |1susan1111

The other answers worth mentioning are:

Answer 2: I would divide the amount won into 3 equal parts.

With the first part I would put it towards paying off old debt.

With the second part I would put it towards a personal purchase, something I would like/need right now.

With the third part I would put it into savings for a contingency fund.

Answer Posted by |Tru Thissell

Answer 3: If my prize was a very large sum of money, then I would definitely pay off my major bills. This would help my monthly financial situation by giving me more money to work with. I would also put some in a savings account (that kind like a Christmas Club, that cant be touched for a certain period of time). I would also give some money to my mother who is on a very limited income and doesnt ever have a lot of extra money.

If the prize was a smaller amount of money, then I would maybe pay off one of my smaller debts or buy something new for myself (which I never seem to do). I would definitely do something like take my mom and I out to a fancy dinner.

I always get the most pleasure from a “win” or a gift when I can share it with my loved ones.

Answer Posted by |Lorri
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