When you hear the words “Payday Loan” what comes to your mind?

1. Do you think of an industry out there taking advantage of consumers?
2. Or, do you think about an industry providing people with relief and peace of mind during this financial crisis?

Most people would say answer a.  But is that true or do we need to educate ourselves regarding this part of the financial industry?  Who are the people that need these payday loans and do they have other options?

According to www.census.gov the official poverty rate in 2010 was 15.1 percent, which was up from 14.3 percent in 2009.  In 2010, 46.2 million people were in poverty, which was up from 43.6 million in 2009.

Those are staggering numbers.  People are having a hard time making ends meet. From 2009 to 2010 an additional 2.6 million people were at poverty level.  Where did they come from?  Middle Class families?  Low Income families?   Who is out there helping them get back on their feet?  The banks?  With the foreclosures on homes, the increased account fees, overdraft fees and high credit guidelines… what do you think?

What sort of monthly expenses do all of us face? Rent/Mortgage, utility bills, insurance, car payment, food allowance just to name a few.  If you are running out of money at the end of the month what would you sacrifice?  Your electric bill?  Your rent?  Your car loan?  Or just overdraft your bank account?  All of those choices involve late fees or overdraft fees and may incur being harassed by credit agencies or having your electricity turned off, being kicked out of your home or having your vehicle repossessed.  None of those sound like viable solutions to me.

According to www.wikipedia.org the definition for a payday loan is “a small, short-term loan that is intended to cover a borrower’s expenses until his or her next payday.”   That is truly what a payday loan is there for.  Many times you will hear payday opponents talk about high interest fees, but when you research these fees in comparison to bank charges and late fees of missing necessary payments and/or possible repossessions/foreclosures/losing electricity, going hungry etc. – which sounds better to you?

So before we judge the financial institutions giving payday loans or the people receiving such loans – let’s make sure that we look at the situation from all angles, and form an educated decision.

Gas prices have dropped nearly a cent daily for the past 4 weeks according to a recent survey. Some states coming in at $3.00 per gallon, while California is still hovering the $4.00 mark. A major factor in gas prices are state tax. California and New York have tax rates of nearly $.50 per gallon which keep overall prices inflated.

Two other factors in gas prices are proximity of refineries and how much people can afford to pay.

Hopefully with gas prices lowering consumers will be more likely to purchase new vehicles! Leadpile has high demand for Auto Finance leads with high payouts. Contact your account rep or support@leadpile.net today for details.

It seems that a lot of people in the state of Washington are concerned over the internet lending industry, but my worries are that they are not doing enough research before applying for an online payday loan. Just as in Washington,there are businesses all around the internet that are not legitimate. It is the job of consumers to educate yourself if you are providing your personal information to a website. There are numerous legitimate websites out there (including Leadpile’s) that allow a consumer to securely request a payday loan. If you are a consumer and needing that extra short term cash, do your homework on the website you are filling out your information and make sure you are completing an online form that is secure. If there are issues in WA, there are potentially issues all over the US, but a lot of this lies with the consumers and knowing what you are doing. Knowledge is power for consumers!

There is a lot os scrutiny on payday loans and what their purpose is. However, many turn to these short term loans because they have no other option. These loans are overly scrutinized as bad for a consumer because their listed APR, which really is not applicable to a short term loan that does not last a year. The Missourian pointed up some positive benefits to the payday loans. For instance, “Research from the Federal Reserve Board indicates that such loans are not “predatory.” Rather, by supplying credit where otherwise there would be none, they help borrowers by enabling them to avoid less-desirable alternatives, such as fees associated with bounced checks, late bill payments and utility reconnections.” If the Federal Reserve Board understands there is value added to these types of loans, why are so many politicians and consumers looking down on payday loans as a “bad” option? Have they never had a reason to get a short term loan for some unexpected expense???? Probably not….

Leadpile is looking for additional Canada payday lenders and also publishers that can help us generate additional US and Canada payday loan traffic. If you are working in this industry, please reach out to us and we can get you up and going ASAP! Some of the main specifics we are looking for in the Canada payday loan leads are:
1. Customers that are employed
2. Customers that have a checking account
3. Customers that have direct deposit
4. Preferably customers that live in the providences of British Columbia, Alberta or Ontario

Sounds like there might be some talk in Mississippi to potentially try and make some changes to the payday loan process. As we all know these short term loans are a necessity for many individuals, however some states are trying to incorporate stricter laws for the lenders. This is what appears to be trying to happen in MS. The proposed amendment would allow all consumers at least 28 days to pay on loans of $201 to $500. On loans of $200 or less, the $21.95 fee would be reduced to $20, and consumers would have up to 21 days to pay. The positive thing that this particular house banking committee chairman said was they are trying to help the consumers, but not get to a point where they are trying to put a legitimate business out of business (the lender). This seems to be something that more states should focus on. How can we continue to make sure the consumers are protected, but also allow them to get these short term loans…. and not put the lenders out of business. We all know consumers need these loans and some never expect they will be one that is in dire need of a short term payday loan, but for those situations where needed these loans must remain available to consumers. In order for loans to remain available to the consumers, we must also protect the lenders that are extending these loans. Stay tuned to see what happens with this MS amendment.

It was another great Affiliate Summit for the Leadpile team. We are now returning from ASW and are excited to move forward on all the great things we discussed with our partners. Unfortunately, we did not have time to meet with all those publishers and advertisers that we wanted to, however if we were unable to connect with you, please reach out to us to get something going!
Leadpile’s message this Affiliate Summit was for the excitement we have for 2011 and all the exciting new things we are going to be getting into. Leadpile is looking at getting into some new verticals such as insurance, senior care, and credit reports (which is already live). We are currently working in bankruptcy, auto finance and payday loan lead types, and we are looking for lots more traffic on all of these verticals. The sky is the limit in 2011, and if we are not already working with you, we definitely want to!

In the age of paperless everything, this article I came across does not surprise me. It was announced that beginning in 2011 new payees of Social Security, SSI, Veterans Affairs and Railroad Retirement income will be required to receive their payments through either direct deposit or debit cards. Say bye bye to the Treasury department printing checks and mailing them. Unfortunately, those that are currently receiving these mailed checks will have to change up how they receive their payments by March 31st, 2011. This is going to be a huge money savings for our Treasury department, however it creates a few questions about the inconvenience this could cause those elderly individuals who have been receiving mailed checks. Will the elderly struggle with this because they are used to getting the mailed checks? It seems that the Treasury department will make exceptions if there are consumers that still must receive the mailed checks.
The peculiar thing about this article is it goes on to point out that this sort of new payment method might create additional victims of payday loans. However, I am not sure how this is applicable to those consumers that are not working and receiving this sort of income. Payday lenders do not generally lend money to those that are not working because of the inability to set up repayment programs etc. Payday loans are short term loans that many need, however those that are retired and receiving income such as SSI, are not even eligible for these types of loans.

Tis the season to be jolly! Many are looking for that perfect gift to buy that special someone. Leadpile has the offer for those publishers and networks that are looking at connecting those consumers with the auto dealership. We will accept banner, email, PPC, SEO and contextual traffic. If you have auto finance traffic, contact your affiliate manager today!

CALLING ALL PUBLISHERS!!!!

Leadpile is looking for additional traffic to our holiday payday loan offer. This is the time of the year when trying to match up those consumers with the much needed holiday cash is important. If you are looking at generating additional revenue during this holiday season, reach out to your Leadpile Affiliate Manager. We will accept PPC, SEO, email, and banner traffic to this offer. Payouts are up to $96.00!

Let’s face it, the economy is in a slump and this is affecting people being able to pay their bills amongst many other things. The good news is, that the economy is going to get better, which means lenders are going to start lending again AND credit will be extended to consumers again. However, if you do not have your credit in check, you will not be able to take advantage of this. The first thing to do, when trying to fix your credit, is understand what your credit score is AND what makes up that credit score. First, you need to understand who the credit reporting agencies are that are gathering this information. The three credit reporting agencies are Experian, Equifax, and TransUnion. Secondly, you need to understand what a good and bad FICO (also known as a credit score) is. A credit score can be between 300 and 850. The higher your credit score, the better. Finally, you need to read your credit report and understand what is on it. To understand it, you must know the main things that make up your credit score:

1. How you pay your bills- your payment history on your credit cards and loans is the biggest factor in making up your score. This means if you have not paid your bills on time, now is the time to start.

2. What do you owe on your credit cards and loans- if you have your balances maxed out on all your creditors, this will negatively affect your credit score. Stopping charging immediately if the balances are close to their limits.

3. How long have you had each of your creditors-the newer the credit, the more it will negatively affect you. If you are applying for new credit cards, stop now to help your credit score. Keep a few creditors for a long period of time and that will help your score.

4. Do you have all sorts of creditors like car loans, credit cards, installment loans etc-the credit bureaus likes to see a diverse selection of creditors. This is not a major factor in your credit score, but something to think about if you are thinking about getting a new creditor.

Leadpile is currently working on generating this sort of lead and will welcome publishers that will eventually be interested in connecting those consumers that want to know their credit score, with the company that will be able to provide this service. KNOWLEDGE IS POWER!

The downturn of the economy has left many people with high credit card balances and not many options. Payday loans have been and will continue to be a great source of necessary and quickly needed funds for a large number of consumers however don’t always offer the larger amount loans or longer payment terms that personal loans once offered. Prior to the economy taking a downward turn and home-equity loans becoming the popular choice personal loans were the main option for many people.

Recently, as the demand to borrow money has become necessary for many, personal loans have been in demand and the supply is starting to make a comeback. Personal loans, can offer the longer terms and higher borrowing amounts than payday is typically able to and offers a much better option and interest rate than credit cards do.

Recently, according to CBS MoneyWatch, banks including Wells Fargo, Discover Financial, Citi and CapitalOne are all currently offering personal loans.

Wells Fargo – loaning $3,000 – $10,000 for lengths as long as five years
Citi – $300 – $7.500
Discover Financial – lending up to $25,000