What Effect Could New Federal Regulations Have on Your Ability to Get a Payday Loan in Tennessee?

If you live or work in Tennessee and occasionally take out a paycheck advance loan, you may need to know about pending changes to the way the industry operates. Federal reforms aimed at helping consumers repay these types of loans more easily could extend due dates and even change the amount you qualify to borrow. Read on to learn more about how these reforms can affect Tennessee payday lenders, as well as some other options for quick cash if you find yourself unable to obtain a payday loan.

What changes are being proposed to the way Tennessee payday lenders operate? 

Currently, payday lenders located in Tennessee are permitted under state law to require repayment in as little as 15 days. Proposed federal regulations would extend this repayment time to 30 days, and would place limits on the collection methods a creditor can use on a debtor who has defaulted on a payday loan. Because these reforms are likely to cost money for Tennessee payday lenders to implement, lending standards could tighten, which has the potential to shut you out of the market for a payday loan if you have particularly poor credit. 

For those who still qualify for payday loans under the new rules, these changes are likely to provide some benefit by increasing the repayment time and limiting the number of times an individual can renew the loan (which incurs additional interest charges each time the loan is renewed).

What are some other short-term lending options? 

If you're unable to qualify for a payday loan under the new standards, there are still a couple of options available for quick cash with a short repayment period.

1. 401(k) loan: If you have a retirement account through your present employer, you may be able to borrow the funds you need from your own account -- and even repay yourself with interest. Not all employers offer 401(k) loans, and you may be prevented from borrowing more than a certain percentage of your account, but if you qualify for a 401(k) loan, you'll be able to have nearly instant cash at a reasonable interest rate. 

When you take out a 401(k) loan, you may be prevented from making contributions to your 401(k) until the loan is repaid. If your employer provides a match to your contribution, the period of time in which your 401(k) loan is outstanding could cost you additional money in lost matching funds. You might also be required to immediately repay the entire loan if your employment is terminated during the repayment period, so you may want to investigate other options if your current employment status is on shaky ground.

2. Auto title loan: If you own a paid-off vehicle, a title loan may be a good alternative to a payday loan for quick cash. While these loans are similar to payday loans in that they are short-term, high-interest loans available to borrowers with any type of credit, they aren't subject to the same specific federal rules governing payday loans, and are therefore likely to become a more popular option once the federal consumer protection regulations go into effect. 

To qualify for a title loan, you'll need the title to your vehicle and a valid driver's license. In exchange for a loan up to a certain percentage of your vehicle's value, the lender will take possession of your title—and until you've repaid the loan and any associated fees and interest, the lender will keep your title.

If you default on this loan, the lender can physically repossess your vehicle without going through a court process, so it's important to be aware of any deadlines and payment amounts associated with these loans. You'll generally be able to extend the payment period or renew the loan if you find yourself getting closer to the due date and are still short on cash. 

For more information or assistance, visit resources like http://www.getezmoney.com.

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financing a family swimming pool

Last summer, my family struggled to stay cool during the summer. We seemed to be trapped inside because when we left the air conditioned comfort of the indoors, we were immediately uncomfortable. I promised my kids that this year would be better because I was going to find the money to buy a pool for our yard. I have spent months looking into my different financing options to find out what would be the most affordable monthly option without costing me the most over the duration of the loan. Go to my blog to learn what type of loans I had considered and the pros and cons of each.