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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Purpose Cash Advance is happy to announce the availability of their online payday loans to Wisconsin residents. The state of Wisconsin joins with Mississippi, South Dakota, Utah and Missouri in the list of states that the company has been providing their most committed service through fast, safe and confidential transactions.

The online payday loans of Purpose Cash Advance can be applied for by filling up a simple online application that requires the most basic information about the borrower. Upon verification of the information, the loan is approved. The loaned amount is then deposited in the checking account of the borrower and is payable on the next payday. This process of cash advance is best for emergency financial situations that are needed in the quickest way possible.

The company submits to the relevant lending laws of Wisconsin. This includes the requirement to submit a pay stub that should be less than 35 days old before receipt of a loan. Moreover, the laws in Wisconsin allow a maximum loan amount of $1200 from licensed payday lenders. Also, the fees for any loan must be limited to a maximum of 30% of the total gross income.

The company requires that the applicant be at least 18 years old, has an active checking account, shows a proof of income and a Wisconsin resident to avail of a cash advance.

After the launch of Purpose Cash Advance’ online payday loans in Wisconsin, the residents can enjoy a fast and convenient way of getting short-term loans of small amounts. The service of the company is fast and efficient that it can provide funds in unexpected, cost-incurring situations like medical bills and home repairs.
Aside from Wisconsin, the company provides their cash advance services in Mississippi, Utah, South Dakota, Wisconsin and Missouri. It is the company’s goal to give efficient, reliable and licensed transactions in all the states. Purpose Cash Advance can be reached via their website or their hotline number.

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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 new company joining the cash advance industry is Payday Loan Buff. This company is providing payday loans to consumers who can apply for loan online by only showing a proof of income. The company announced lately that they plan to put up a base that will operate in South America. A licensing agreement is being set so that Payday Loan Buff can start an office to operate in Northern Mexico.

According to their CEO, part of the company’s plan for expansion is to start with some countries in South America. He further added that the company is lucky to find a partner that allows them to get a license to operate in the whole country of Mexico. This is a way to gain access to many consumers that have been experiencing tremendous financial challenges. The easy way to obtain cash advances is the company’s goal to help their consumers improve their lives little by little.

Payday Loan Buff’s partnership with Mexicans will be directed by a number of local businessmen and businesswomen. These entrepreneurs personally approached the company after seeing a press release of the company’s intention to operate in their region. This group of entrepreneurs is more aware of the potential consumers in their area. Because of this, they can represent the company in the best way possible. Also, they can keep local customs economics in the frontline.

The plans of the company include website development and training for the Mexican team. Aside from this, the company aims to oversee management. This is to ensure that the policies that have been set by the company are being practiced in the new site. Ownership of the operations will still be given to the company but license of the operations will be placed in the hands of the group of entrepreneurs. The group of businessman and businesswoman will take the daily responsibility of handling the operations.

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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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