“Do not save what is left after spending, but spend what is left after saving Savings”-warren buffet
These days ‘savings’ has become such a foreign term for people. Spending everything they earn each month early and desperately waiting for their payday has become quite a common trend amongst the people of Knoxville. As a consequence they look for payday loans when in need for some quick cash. Like in every other state Tennessee too has its own set of rules (45-17-101) and regulations for these loans both for the buyers and for the lenders. The process of payday loans in Knoxville is very simple and many firms like “check world”, “American cash advance etc. offer one stop easy solution. These loans are usually taken for short term emergency needs which need quick resolution like medical bills, car repairs, buying new furniture etc.
Rules for Payday loans in Tennessee State
Basically how this works is when people have short term urgent financial needs like bills and payments etc, they take small loans based on their bank statement (which is a proof of their income) to fulfill their urgent needs and to repay it on their payday. These payday loans are very risky as these are unsecured loans (that do not require any asset/collateral/guarantor as a proof)
Most of the rules in Tennessee are similar to the rules of other states in the US. Maximum loan amount in Tennessee is $500 with a term limit of 31 days. The annual percentage of payday loans in Knoxville Tennessee is 459%. These rules are not roll over in the state and the state has these strict rules so as to protect the borrowers from the rooftop rates of the lenders and also to limit frauds in payday loans. The lenders are prohibited from taking criminal actions against borrowers in case of defaulters. These rules are followed by all the lending companies in Knoxville as they obtain their license from Department of financial institutions.
Advantages and disadvantages of payday loans Knoxville Tennessee
Payday loans are a product of mismanagement of one’s economical situation. Savings if present will eliminate the need of payday loans altogether but sometimes when there is an urgent crisis due to some issue these loans come in very handy as they do not require any processing time and are very fast. A Payday loan in Knoxville can be obtained very quickly when in such crises with loan providers in every corner not only on the streets but also online. Also the loan approval is very difficult when it comes to other type of loans. For payday loans only the income proof is needed either through bank account/salary statement.
Disadvantage of such loans is their heavy interest rates which even after being regulated by the state is very high and this leads to unnecessary loss of money to the lenders. Also such loans sometimes are very addictive and some people start depending on them heavily every month not just for crises. They have a tendency of spend all of their wages early and they for the later part of the month rely on such loans not realizing that they are losing money to the lender every month.
Payday services in Knoxville TN
Knoxville has a plethora of payday services both online and offline. There are many comparison websites that compare the loans of various providers. If people suspect that the loan company is acting suspiciously they can complain to the “Tennessee department of financial services”. A 14 day loan of say $ 100 will almost charge the borrower $17.65 (standard), this may vary with different lenders but as per state rules the borrower cannot charge more.
Why are payday loans more popular in Knoxville than other contemporary loans ?
Here are few reasons why the people of Knoxville choose payday loans:
- Even people with bad credit scores get loan approval: – The loan approval is quick and safe and does not depend on the credit score of the borrower.
- Borrower can use the loan money wherever they want without any explanation required.
- The State closely regulates the lending agencies with strict rules and protects the rights of the borrowers.
- Variety to choose from: – Due to cut-throat competition between lending agencies the borrower is benefited in the process.
- Very efficient and solve the purpose: – These loans are generally needed in emergency situations and hence reflect the loan amount in the borrowers account within the next business day.