How to decide your payday loan amount & 3 reasons you may need a personal loan today

As nice as it sounds to apply for a loan, have it wired the same day and start feeling financial relief, it doesn’t always work that way. Often people take out payday loans to cover a single bill or expense and then find themselves right back where they left off.

reasons you may need a personal loan todaThere are a few steps that can be taken before you take out a payday loan that can help make the loan last longer.

First, decide what expenses are unavoidable. This may be a late electricity bill or car repair or anything else urgent. Anything that cannot wait until your next paycheck to be paid should be assessed.

Next, determine what expenses can be put off. Is there a way to avoid going to the grocery store? Can you carpool to save money on gas? Is there a relative willing to babysit so you can avoid childcare expenses for a week? Think of anything that might help bridge the gap.

Once you have determined what your actual financial status is, you can begin deciding on the amount you would like to borrow for your payday loan. It can be dangerous to borrow to much because you can find yourself unable to repay and facing fees. However, you don’t want to underestimate your needs either. If you’re going to take out a payday loan, you want to cover as many necessities as you can afford to pay back, so as to avoid further complications.

Never take out a loan on impulse. Figuring out your budget can be the difference between smooth borrowing and extensive debt.

Not every occasion calls for a personal loan! Sometimes where you’re low on cash you just have to hang in there until payday. However, emergency situations can arise that are unpredictable and some spare cash may be needed.

In these circumstances you may want to get a personal loan instantly to avoid bigger problems that may arise.
Utilities Being Shut Off

It can be easy to fall behind on utility payments when cash is tight and bills are piling up. However, if you have gotten to a point where you risk getting an essential utility turned off, a small loan may be necessary. Electricity, water and gas are often nonnegotiable, but bills like cable and internet may not justify borrowing money.
Car Repair

It’s hard to predict when something is going to fail on your vehicle. Often it seems to happen at the worst time possible. If you depend on your vehicle and it can’t function without repair, consider a personal to bridge the gap.
Medical Bills

Like with car troubles, a medical issue can arise out of nowhere. If you’re options for payment is limited, these types of loans can get you through a difficult time.

Banks’ bad loans now top $1 billion

Around 80 commercial banks, chartered in the St. Louis region, had made up $66 million in profits, by this time last year. This year they have recorded $169 million in losses.

The main cause behind the downfall is bad loans, as the real estate problems spread from residential to commercial real estate. Bad loans, which can also be called nonperforming loans, increased 69% to $1.05 billion in the first six months, from $620 million a year earlier.

According to The Federal Reserve Bank of St. Louis, ten banks recorded losses in the first half of last year; while 17 did this year.

Many banks have shown loss
Bob Witterschein, chief executive of the Southwest Bank said that he was not terribly surprised by the numbers, which are a function of a weak economy. A number of banks have shown a loss for the first six months of 2009 due to charge-offs and a desire or necessity to build their loan loss reserve for potential future loan issues.

Performance of First Bank
The performance of First Bank wasn’t much promising too. It has lost $174.5 million so far this year, compared with a loss of $30 million at this time last year. In comparison, the other banks made a little more than $5 million in profits during the first half of this year, but they also made $62.5 million in profits in the first half of last year.

Heavy lending in the housing markets has led to the downward trend
Terry McCarthy, president and chief executive of First Bank said that First Bank is the biggest and most geographically scattered of the banks, with $10.4 billion in assets and locations in four states, including California and Florida, both hit hard by the real estate collapse.

All the banks, facing downfall, range widely. The second largest bank chartered here is Southwest, with $6.5 billion in assets, and the smallest is Chesterfield State Bank, with $16 million in assets.

Many banks have received capital injections under TARP
Several of the banks have received capital injections under the federal government’s Troubled Asset Relief Program (TARP), including First Bank, $295.4 million, Reliance Bank, $40 million; Enterprise, $35 million; the Business Bank, $15 million; Bank Star $8.6 million; Triad Bank $3.7 million; and Fortune Financial Corp., $3.1 million.