In Washington this week, state lawmakers are making big decisions when it comes to consumers and their credit cards. For every transaction that involves a credit card, the merchant or business must pay a small fee to the credit card company for the convenience of using this method of payment. While credit cards are in fact convenient and easy for customers to use, some merchants may be wondering if the financial costs outweigh the convenient benefits. While the fees attached to credit and some debit cards are minimal, there is some worry that the fees are disproportional to cost of using this type of payment. Concern for the merchant and the customer is growing as both wonder if convenient cards actually make the back in costs rise dramatically. Some businesses are encouraging customers to use alternative forms of payment, like cash, rather than using a credit or debit card. In addition, a discount is sometimes offered to anyone using cash instead of a card. While the legislature has yet to make any decisions on the matter, small businesses may take matters into their own hands by increasing the costs of their goods and services to cover the costs incurred by credit or debit card processing fees.

In October of 2009, House Bill 230 was passed which regulated the availability of payday loans and emergency cash loans for customers in the state of Ohio. When customers are faced with an emergency loan situation, the highlight of this 2009 bill is that it guards customers from possible hidden fees or excessive charges. In May of 2010, a new House Bill was passed, HB 486, which closed the loopholes that charged unnecessary fees to consumers looking for payday loans in the state of Ohio.  Now that the bill has passed in the house, HB 486 will go on to the Senate to gain final approval and to become an Ohio state bill. Ms. Jennifer Garrison, an Ohio state Representative from the 93^rd District is an avid supporter of the bill. Advocates of the bill, like Garrison, hope that additional jobs will be created in the state. With additional jobs, more consumers will have access to payday loans. HB 486 will help make cash loans easier for residents to qualify for in Ohio.

In Wisconsin, auto title loans have been booted to the curb and are no longer part of the state’s legislation. On Tuesday, Governor Doyle opted to remove auto title loans from the legislation through a veto that passed on May 18^th. Wisconsin residents are left holding the bill and must find alternative sources to the auto title loan.

Consumers will miss the benefits of the auto title loan, but another available option is called the payday loan. A payday loan is similar to the auto loan in that it can be applied to virtually any expense a customer has accrued or will accrue from an unexpected bill, like auto work or maintenance.  Consumers who borrowed auto title loans from a legal lending source may get hurt or even burned by the Governor’s veto.

The intention of the veto was to prevent customers from being taken by loan lenders. However, the loss of the auto title loan may project that crime will increase as people turn to non-standardized lending sources. Rather than turn to illegal sources for loans, Wisconsin residents should consider a payday loan as an alternative solution to the auto title loan.

By a slim margin of 1 vote the Colorado Senate passed new limitations on payday Loans.  Having passed the Senate hurdle the bill heads back to the house who are expected to approve this latest version quickly.

While supporters of this bill tout that it will help protect vulnerable consumers from growing debt, opponents argue that the bill will cost jobs in the financial sector and remove one of the few credit sources available for people with little or bad credit.  They suggest that this lack of credit sources has a chance to increase foreclosures and evictions for consumers strapped for cash as well as increase the need for government help.

The new bill would require lenders to allow repayment up to 6 months after the loan and allow for the flexability for repayment of loans sooner.  Lenders would be allowed to charge $75 with flat fees and/or annual interest for each month past the first.

Sen. Lois Tochtrop of Thornton disagreed with sponsors of the bill saying that this bill would create an opportunity for organized crime step into the place once filled by legally controlled lenders.  She suggested that in the end this would create much greater hardships on the end consumer saying, “They’re going to have broken legs and they’re not going to have the money to get those fixed.”

This is the time of year when payday loans are in high demand. People around the country have received their tax returns, but have discovered that they money they received from the government just isn’t enough to cover their ongoing bills. The recession, when combined with the kind of economic slowdown we’re currently experienced, has forced many to look for other loan sources.

It’s not easy to borrow cash from relatives, and it’s definitely not easy to ask your friends for a loan. Instead of putting you and your loved ones of the stress that financial strain brings on, you should look into applying for a quick short term loan from a payday loan agency. It’s much faster than receiving a loan from a bank, and it can be tailored to meet your specific needs.

Payday loan agencies are instantly responsive to your application. Need $500 for your electric bill? We’ve all found ourselves in the same situation at one point in our lives. All you have to do is find an agency of your choosing, fill out the application, and you can have your cash advance within 24 hours in most cases.

If you need fast cash, a payday loan agency is your best option.

Tax season has hit us again and with it comes the need to get your money as fast as possible.  Many of the tax preparation companies urge their consumers to get their cash instantly using a Refund Anticipation Loan, also known as a RAL.

Consumers should be warned to consider the complete costs of a RAL and that these loans can actually wipe out a significant portion of your overall return.  Beyond exorbitantly high interest rates these loans come with a large number of hidden administration fees, so the consumer will be actually paying someone else to have access to their own money.  Also if the refund is less than anticipated or the RAL is not paid off in time, more fees kick in and potential can take the entirety of the loan amount.

If you need the money quickly, an alternative is taking out a payday loan.  These loans generally come with set costs based on the ammount borrowed and no or limited administartion fees.  You will still have accesss to cash deposited directly into your account, and the anticipation of a refund check, without the plauge of excessive administration fees.  Be sure the read any payday you sign up for carefully, to be sure you are aware of all the fees they might have.

We have compiled 5 facts about debt negotiation to help you through the trials of fixing your debt problems.  For many of us, debt from credit cards, school loans, auto loans, and mortgages can be crushing and very few people know how to successfully negotiate debt settlement.  Learning to do this will not only give you a way to gain control of your debts but all of your finances.

Fact #1

You are the keeper of all your own information.  You must know how much debt you owe, to whom, at what rates, and with what fees.  It is shocking that so many Americans when looking at their credit reports for the first time don’t recognize all the items on it.  If you don’t know what is being held against you, you can’t pay it off and interest will continue building till you are completely covered in debt.

Also, knowing how much the interest is on all the forms of debt and the fees for all your debt is important.  If one has a low interest and one a very high one, it is important to negotiate the higher one first as it has the most affect on you.  On very high interest debt you may accrue more every month in interest then you own entirely on low interest.  Also, fees have a way of building up on you, so pay off the ones with high fees first.

Fact #2

Keep up to date records on your payments.  This will help you when you go to negotiate your debt.  By being able to show when and how you are working on fixing your debt issues, your creditors will be more willing to work with you.  Also by doing this you will be able to watch your own habits when it comes to paying off your debt.  You will know if you continually pay late, which is very bad, or skip months.  Knowing this will help you know what you can fix.

Fact #3

While companies you owe money to do want to get their money, they may or may not be willing to work with you.  Your debt makes the money by the fees and interest, so it is in their interest to keep you owing them.  There will be a point when they want to get paid, and will be willing to negotiate with you in order to get some of their money paid back.  The key to this is persistence.  You have to keep trying to negotiate with them.  Don’t take no as no forever, just not right now.

Fact #4

Know what you want.  When you got to your creditors, you will need to negotiate.  This means you will need to be able to say what exactly you are hoping to get from them, and also know what you are willing to accept and not accept.  If you just ask for negotiation but don’t offer up what you are looking for, things will always work out in their favor.  Keep in mind what you want needs to work for you and them.  You may not want to pay anything back, but that is something they will never accept.  Keep looking for a solution where both you and your creditor get something.

Fact #5

Follow through.  Once you and your creditors have settled on a plan, use the tools you are provided and follow through with the agreement you come to.  If you are not sure on something, contact them and ask questions.  If you show a willingness to work with them and integrity things will get better.  If you set up a plan and don’t follow through, the chance of getting reconciliation in the future gets much worse.

Debt negotiation does work.  It offers you solutions to get your financial freedom back without bankruptcy, and a sense of accomplishment that you were able to do it for yourself.  Fighting debt can be scary for anyone, but know facts about your negotiation can help you get back on the path and out of the woods.

An assembly of Wisconsin Democrats have announced a compromise on legislation regulating the payday loan industry in that state.

The compromise bill would remove the interest rate cap on payday loans, which industry experts say would make it impossible to loan money in the state.  The new bill instead limits loans to $600 or 35% of the consumers income including interest, whichever is lower.

Representative Gordon Hintz says the new provisions will protect borrowers by making the loans tailored to the borrowers ability to pay the loan back.

Kept from the original bill is a statewide database that would track consumers who receive payday loans, preventing them from taking out more then one loan at a time and a transaction fee placed on lenders used to fund financial literacy programs.

Representative Hintz admits the new bill will still make it difficult for the lenders to operate in the state.  He says the regulation will promote a new business model rather than push to keep the older outdated model.  The new bill will also ban the practice of using an auto title as collateral on the loan.  One state representative says that the practice of title loans sets borrowers up for failure, since they can loose their transportation which has a very large effect on their earning potential.

There is hope that the bill will be voted on in the coming weeks and be on the Governor’s desk by the end of the sessions.  They do admit that the bill is likely to be changed again before it finally passes.

A new law took effect on Monday aimed at protecting South Carolina consumers.  This law specifically targets small dollar, short-term, unsecured loans which would include payday loans and micro-loans.

This new law is, in the words of one state representative, “to help protect consumers from themselves.”  The main provision in the law is that it limits residents in the state to one payday loan at a time, keeping them from effectively borrowing more then their base income at any given time.  Additionally it sets up a statewide database to keep track of payday loans for each consumer, again in order to keep them from having more then one active loan at a time.  A similar database is maintained by the Employment Security Commission, but is badly managed and maintained cause it to be fairly ineffective.

Additionally the law requires lenders to offer payment extensions and payment plans for borrowers that can not pay off their loans in the set time frame.  This does not cover any existing loans issued prior to the law going into effect.

I the short term this law is going to negatively impact consumers used to taking out multiple loans for between $200 and $300, limiting the amount of emergency cash they are able to obtain.  Lawmakers agree that in the short term this will hurt South Carolina’s low income consumers but is beneficial for their overall debt in the long term.

The availability of short-term loans is looking to be in danger thanks to new bills proposed in the state legislature.  Under the guise of protection to consumers, lawmakers look to lower interests rates to the same level as long term loans.  This would drastically cut down on lenders abilities to off-set the regular occurrence of fraud and delinquency in short term loans and make it an unavailable option to lenders.  In turn this would virtually kill the availability of short-term low-dollar loans in the state.  Residents would no longer have an option for a $100 or $200 loan to tide them over to the next paycheck, potentially leaving many in danger of evictions and repossessions as they are unable to deal with financial emergencies.

The bill is spearheaded by Representative Jeff Smith, who’s opponents claim  is looking to support the larger financial institutions who will reap the benefits when these low-income consumers have their homes and vehicles repossessed when they are unable to come up with the money to pay their monthly bills.