Rob McCord, Pennsylvania State Treasurer is continuously admiring a payday loan program of a credit union. This program has been reported to save its members worth $15 million.

The $125 million Cross Valley Federal Credit Union was visited by Rob McCord to find out about its Credit Union Better Choice program. According to the Treasury Department of Pennsylvania, this program was said to have given assistance to three women who were faced with unexpected expenses. This Wilkes-Barre, Pa.- based credit union has been reported to have issued around 280 Better Choice payday loans to about 101 of its members since the year 2007.

Better Choice Payday loan was launched in 2006 through a joint venture between Pennsylvania Credit Union Association and the state. Since then, the participating credit unions was said to have made about 43,000 Better Choice loans that amounted to a total of $20.5 million.

Officials said that the loans have given its members a total savings that amounted to $15 million. This cost includes fees especially interest charges that goes with most payday lending products. Better Choice Payday Loan is available at about 79 credit unions in almost 222 Pennsylvania locations.

Mc Cord said that the Better Choice Program is especially designed for people who seek payday lenders because of economic struggles that lead to difficulties in making ends meet. He adds that this program is a better option for these people.

The President and Chief Executive officer of Cross Valley FCU, Edward Kaushas, said that the decision to offer the loan came easily. Their company is happy to know that the program is able to reach out to many people and make a big impact in their lives and in their families.

The typical charge for a $500 payday loan is about $15 for every $100 that is borrowed in a two week period. For a 90-day period, the fees for the same loan will reach about $450. However, in the Better Choice program, the cost of this type of loan for a 90 day period is about $42.50. By the end of the loan period, the borrowers save about $50.

Mc Cord highly spoke about the Better Choice payday loan program. He said that this helps Pennsylvanians expand their dollars for emergency needs without falling into bad debt that most traditional lenders may create.

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Borrowers in debt look for other options as other lenders support the end of payday loan rate restrictions in assembly. Consumers in Kentucky want to open all their options in the decisions they make. This includes choosing the best financial product that will fit them and their circumstances.

In the General Assembly’s recent session, self-appointed activists removed the option of payday loans for consumers by pushing a bill to remove payday lenders from the state. Luckily, there are many bipartisan free-market advocates that can overpower this consumer rights violation. However, the activists plan to come back and submit the same bill in the coming year.

Efforts given to put an annual limit to payday loan percentage rates are caused by the lack of understanding of the product. This is also pursued by organizations that are funded by payday loan competitors.

Payday loans are one-time payment, fee-based loans. The law of Kentucky particularly forbids the charging of interest by payday lenders. Its opponents describe it untruthfully to give legislators and the public the impression that payday loan borrowers are charged high interest rates, late fees, rollover charges and other forms of charges that are prohibited in Kentucky. But the truth is that payday lenders inform their customers of the real terms of their loan. Once they obtain a loan, the customers know how much they owe by the time the payment period ends.

Payday lending opponents in the state of Kentucky includes CLOUT, KCRL and AARP. All three are competitors of payday lenders. CLOUT and KCRL are mostly funded by banks and credit unions that compete with payday lenders in the short-term credit market.

A payday loan may not be the best alternative to obtain emergency money. But, it can still be the least costly option for some consumers for many families. Hence, the choice must be left for consumers to make and not for legislature or activists.

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A lot of people have made various attempts to fix their financial situation. However, majority of these people failed. This is because financial resolutions need a long-term behavioral change which is very difficult but not impossible to do. There are other things that can be done to fix one’s finances aside from saving and spending less. Here are three tips to try to be able to manage your money better.

First, obtain a free copy of your credit report. The legislation in 2003 entitles all Americans to an annual free copy of their credit report. Each of the three credit bureaus must provide this copy. It can be obtained via AnnualCreditReport.com.

Despite this privilege, survey shows that almost 2/3 of Americans do not order a copy of their report. Getting hold of one’s report is important because it allows you to understand your credit score. It also helps in identifying errors and disputing them so that changes can be made that will help you obtain loans and additional credit for purchasing your needs. Aside from this, credit ratings these days determine employment. If you are planning to apply for a job, you must know your credit standing to see if it will affect your job application.

Second, go through a medical exam. This is a preventive measure rather than a direct solution to a financial challenge. By going through a medical exam, health care expenses are significantly reduced. This is because minor health problems are addressed early on before the condition gets worse.

Finally, update your beneficiaries. Deaths are inevitable and there are plenty of cases wherein the insurance proceeds go to someone else. Sometimes, this is not the intention of the bereaved family member but since the update was not made prior to death, there is nothing he or she can do about it. Remember that the name indicated as the beneficiary will be the person who will be receiving the proceeds of the insurance.

This holds true even if the will of the dead family member states that it must go to his or her spouse or children. Updating of beneficiaries should be done every time a major life change such as marriage, divorce, child birth or spouse’ death occurs. Accounts that usually need beneficiary designations include the following: 401k, 403, 457 plans, retirement plans for the self-employed, individual retirement accounts or IRAs, credit union plans, disability and life insurance policies and annuities.

Before the economic challenge took its toll, people dealt with short-term financial challenges by paying a check at a grocery store while hoping that it won’t clear before their next payday comes. This can be quite risky especially when the check bounces and there is a need to pay additional fees. The lack of option to make ends meet when cash is short is to take a loan from payday lenders.

Payday lenders give loans for the short-term. Loanable amounts range from $100 to $1000 with fees averaging at $15 to $30 for every $100 borrowed. This type of loan can be easily obtained. However, they can be very expensive. If the annual fee is considered, the rates can range from 381% to 700% according to NCLC or the National Consumer Law Center. More than the high interest rates, a cause for worry is the repeated loans of many borrowers because of the inability to pay their current loan when it becomes due. Many individuals get stuck in unmanageable debt because of this type of loan. But, payday loans are not the only options to provide for short-term cash needs. There are other fast-cash sources like 401K loans and credit card advances.

401 K allows employees to loan up to $50,000 or 50% of the total amount invested whichever is lower. Interest rates in 401K loans are generally lower than other types of consumer loans. On the average, a 1 to 2 percentage points higher than the prime rate is charged as interest. Payments are deducted from the paycheck, interest is paid to oneself and there is no need to undergo a credit check. Moreover, 401 K loans do not give limits as to how or where the money will be used.

Credit card cash advance is also a quick way to obtain short-term funds. However, they can be very expensive. The fees and interest rates for cash advances are usually higher than credit card purchases. It does not give a grace period for payment.

Running short on cash can be a challenge especially when the payday is not coming soon. However, short-term emergency funds can be obtained by borrowing from payday lenders, 401K loans or making credit card cash advances.

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Many people are able to receive bad credit personal loans after bankruptcy, often as soon as 30 days following the discharge of the bankruptcy. Many companies have actually found a pretty good market offering these loans to their clients.

You see companies are willing to do this knowing that a person cannot claim bankruptcy for a minimum of seven years following the bankruptcy discharge.

This opens a new market where some lenders will take a chance of people with a bad credit rating knowing they have legal recourse to recoup the amount of the loan.

Although most traditional lenders simply will not grant bad credit personal loans after bankruptcy there are numerous lenders that fight over the market.

At the time of writing to my knowledge there are no laws in place to stop people from taking on these loans, even though people are required to go to counseling lessons they are not actually forced to follow-up on everything they are told.

Once the bankrupt individual has discharged his bankruptcy he or she should be free to go after a bad credit personal loan when they feel the time is right.

We all know that bankruptcy records are totally public and this very often causes people a lot of embarrassment and difficulties in getting by. For this reason people are often in a rush to get back on their feet and many feel that a personal loan after bankruptcy is the answer.

Some people are maybe a little bit too desperate and find themselves repeatedly having to file a bankruptcy in a continuous seven-year cycle. I’m afraid the new bankruptcy law has not managed to put an end to this.

The absence of a law against bad credit personal loans

While many laws exist over who can offer bad credit personal loans after bankruptcy and the interest rates charged for them, there are no laws governing who can apply for them.

Many folks take out these loans despite the well-known fact that they come with very high rates, even folks who have been through multiple bankruptcies in the past still very often take them out.

It is the norm for lenders in this industry not to require collateral for the loan. The truth of the matter is that because of the legal recourse available which can include Wade garnishment, even when the loan goes into default the lender stands to make a profit.

You see when someone defaults on one of these loans a court ordered repayment is commonly granted right away for however much the loan comes to, plus all costs involved with the collection of the loan.

Either way you are strongly advised to consult your lawyer on anything relating to this as bankruptcy and these kinds of loans are to be taken very seriously, also like in all markets there are scams to be avoided so you must check out any deal you are interested in very closely.