Category Archives: Payday Loans Compton CA

Why Bank Overdraft Charges Can Hurt You

Why Bank Overdraft Charges Can Hurt You
Some of you may not know what a bank overdraft is. For those of you who don’t, it’s when you write a check and you don’t have enough money to cover it. If you write a check for say $75 and you don’t have the money to cover it, the bank will have to cover those expenses. When that happens you end up getting overdrawn and a fee is incurred because of it. When an overdraft happens that brings your account into the negative numbers. Most banks will usually charge a $35 or $45 fee for having to cover the expense.

This may not seem like a big deal to many of you, especially if it only happens once or twice. But if it happens more than once or twice, it can have a bad impact on your banking and your credit history. Every time that overdraft happens, it gets sent right to your credit history. That has a direct impact on your credit score.

In what ways will this have an impact on your credit score? For one, it will affect your bill paying. If you miss just one payment due to insufficient funds, this gets reported to the credit bureau. Your check will bounce and the company that you owe money too will not get their money. One missed payment may not have a huge affect on your score, but several missed payments will. The more you bounce your checks, the more your score and history gets impacted. That means lack of funding for loans and mortgages. You might also have a hard time getting a job, due to this delinquency.

What about the overdraft fees? If you have just one overdraft, than it might not be a big deal. But if you keep incurring draft after draft, that money adds up. The bank can charge hundreds of dollars for unpaid debts. That money needs to get replaced. The bank will charge you that $35, if not more, to cover that debt. But that money needs to get put back. You can’t keep leaving your account in the negative numbers. The linger your account stays in the negative, the more the bank has to cover what you owe. That money still needs to get put back. it could get to the point where the bank returns the checks, without paying them. When that happens they charge a bounce-check fee on top of the fees already incurred.

For your own sake, it’s better to not let it get this far. The deeper the hole, the longer it takes to climb out of it. If it gest to this point, your bank will place your account into collections. Which means that any fee that needs to get paid back, gets reported to them. This is also a major impact on your credit score. This impacts your score much harder than paying back a payday loan.

Another negative side effect of this issue is that the bank can place a freeze on your accounts. Any wages that you make will go directly to paying off your debts. That also means that your other bills will suffer too. Your bank can press charges against you. If you are convicted of the crime, you will have to pay restitution fees. Every fee that has every been charged to your account will need to be paid back.

This also spells disaster for your credit score and history. Whatever you do, don’t let it get this far. Keep track of your accounts. Just one bank overdraft can ruin your credit score and rating for life.

Payday Loans Compton CA

When individuals start to think about needing money fast, there are more than enough sympathy stories around the country which can fall right into line in the same exact way. Times are tough and it is becoming more and more difficult to even find a legitimate job let alone have enough cash coming in to pay off all of your debts. And, while it might have been due to negligence or just miscalculations, even having old debts in the past can continue to haunt you unless you can find a way to get the cash you need now in order to pay them off.

Everyone knows that debt is never a good thing when you don’t use it as it was originally intended. Debt is when you don’t have the money for something now that you really need, so you borrow and basically get an “IOU” (I owe you) in order to obtain the item(s) that you want and need. However, just because you are borrowing the money doesn’t mean that you won’t have to pay it back, and in most cases you will actually be forced to pay back more than you borrowed in the first place in the form of interest! So while it is important to make sound financial decisions, many people abuse their power of borrowing and will instead end up putting themselves in a significant hole full of debt.

The most important step to digging yourself out of debt isn’t by using payday loans, but they definitely are an important part of the entire system. Probably the first thing that you should be looking into with your debt situation is to curb your spending! If you live outside of your means and continue to stretch yourself thin, then you will hit a point where your entire pay is wasted paying old bills or you might even get in over your head to where you can’t even afford what you owe to others. Plus, because interest continues to pile up over time, it only makes sense that the more debt you find yourself in that the faster it will snowball.

Finding out how to use a payday loan correctly is pretty important, and as long as you think through your specific financial situation then you should absolutely be able to get out of debt relatively quickly by using payday loans to your advantage. The first thing to think about is whether or not you can actually afford to skip using payday loans. Sure, some people get upset that payday loans will charge a fee, but shouldn’t that fee be seen as the cost of doing business and not as just some sort of charge that will hurt your wallet? After all, when a credit card or the bank charges you a slight fee, it’s never actually seen as a big deal; in fact people have come to actually just expect it as part of the process. But why then do individuals get upset to have real money put into their pockets in no time at all while they don’t even have to go through a credit check or wait a long time for their loan to clear?

Once you have actually taken the steps to get the cash you need right now to pay off your loans then you should take the time to look into what sorts of behaviors and habits you can change. You need to actually discover what sorts of habits you can change that actually got you into debt in the first place. People seem to care about a few bucks when it comes to borrowing money with payday loans, but then they just don’t seem to mind when they spend a few dollars here and there on non-essential items; talk about a weird behavior concerning finances.

After you have found the way to trim down your finances to a specific level that will allow you to pay off your future debts, then you will finally be living within your means. In other words, you can actually start to pay off your bills on time and you won’t have to continue worrying about late fees. You will also be able to start chipping away at your debt rather than continuing to see it add up to higher and higher amounts. And, as you finally decrease your debt then you will see it decrease by greater and greater amounts just like it originally had snowballed up in the first place. This is great news simply because the more you pay off the less you will owe, and the less you owe the more money you will have each payday to put towards paying off your debt.

In the end it is extremely important to realize that there is no magic way of getting out of debt. You won’t just wake up one day and discover all of your money problems have been solved so you actually need to work hard at it in order to get ahead of the curve. By thinking ahead and using some clever problem solving skills, you can absolutely use payday loans to dig out of debt and actually get ahead. Whether or not you end up getting out of debt as well as how long it takes you will always come down to you, but by being able to access real money in no time at all you can not only avoid digging your debt hole deeper, you can also start to fill it in and get back on the path to financial freedom.

If you have any sort of debt problems or you just want to learn more when it comes to what you can do with respect to paying off your bills and loans, make sure to look into payday loans to dig out of debt as soon as you can. You might learn something, end up saving a ton of money, or even find a few ways to think outside of the box and get ahead in the end.