If you find yourself in an emergency financial situation, you might consider your options when it comes to payday loans. Getting cash quickly can help you until your next check. Take the time to read on about payday loans, and how they can help you.
- You can some investigation: Make sure you do some research. Find a lender that fits you well. The more lenders you look at, the more likely you are to find a legitimate lender with a fair rate. This process can be somewhat time-consuming, but considering how high payday loan fees can get, it is definitely worth it to shop around. That little bit of extra time can save you a lot of money and hassle down the road. Payday loan services are all different. So do a bit of research before you find a payday loan lender for you. You need to educate yourself about as many lenders as you can so that you can get the best deal and not end up end up regretting your decision.
- Shop around first: If you’re needing to get a payday loan, you have to shop around first. Even when in a crisis, use your head. If you look for several different companies you can find the best deal on interest. This can save you a lot of time later so that you don’t have to spend your money on tons of interest.
- Realize the fees: Understand all of the fees that are involved with making late payments. There is no doubt that you have every intention of making your payments on time, but circumstances can change. The fine print will give you an idea of the late fees that you will incur. When you don’t pay on time, your overall fees will go up.
- Should avoid: You should avoid any payday loan establishments that are not clear about their interest rates and the terms of the loan. If this information is not presented to you clearly, you should see it as a red flag that the company may be a scam.
- Agreements: Many loan companies can make consumers sign agreements that will protect lenders in any dispute. If the borrower files for bankruptcy, the lenders’ debt will not be discharged. This is why agreements and documents are signed prematurely, to avoid disputes that could go against the lender. If you’re in trouble over past payday loans, some organizations might be able to offer some assistance. They will be able to help you for free and get you out of trouble.
- Additional Care: Take extra care that you provided the company with all the correct information. You will need to provide proof of your employment and salary, usually by showing your pay stub. Always provide a current phone number for them to contact you in case something goes wrong. You will have a longer wait time for your loan if you don’t provide the payday loan company with everything they need.
- Ends up costing: Understand the fees of a payday loan before you take the money. Borrowing $200 for one week can cost you $30 in interest. This interest rate ends up costing close to 400% annually. If you default on the loan for any reason, you’ll end up paying even more. If you have made up your mind and are definitely going to get a payday loan, please be sure to get everything in writing before you sign a contract. There are many scammers out there looking to make a quick buck off of people in desperate situations. Some even set up your account to automatically withdraw money.
- Remember: Don’t overlook the future costs of getting a payday loan. It’s very easy to think that one paycheck can be ignored and everything is going to be okay. But, usually, people pay the loan slowly and end up paying double what was borrowed. Remember that when you budget. Look around before making a choice about which company to use as a payday loan lender. Review online deals to in-store loans, and look for a lender with great rates and better terms. This can save you a ton.
- Interest rate: Before agreeing to take out any loan, it is best that you understand what interest rate they are charging you. Some people look at other factors, and that is a mistake because the APR tells you how much interest and fees you will pay.
- Be certain: Take time to carefully consider any decision to sign for a payday loan. There are times when you don’t have a choice but a payday loan should not be your first resort in a financial crisis. Be certain your initial shock has passed and that you feel calm about the situation before rushing into any financial decisions.
- Not paid: If you have taken a payday loan with a company but have not paid it back, do not consider taking out a new payday loan. While you may honestly feel like you need the money, you should look at your own history and realize that this is not a good decision to make.
- Reconsideration: Reconsider refinancing payday loans. The biggest problem with payday loans is that they’re addictive, in a sense, and people end up using loans to pay down loans, creating a vicious cycle of debt. Because their interest rates are so high, just a little bit of compound interest can dig you into a deep hole. If repaying the payday loan becomes an issue, your bank may offer an inexpensive personal loan that is more beneficial than refinancing the previous loan.
- Best bonus rates: Avoid getting a loan from a lender that charges fees that are more than 20 percent of the amount that you have borrowed. Payday loan rates are quite high, but they should never be higher than this benchmark. Compare lenders to get the best interest rates, lowest fees and best service possible. By ensuring you know all the details, you can avoid being surprised in a bad way whenever you have to pay back the loan.
It can be tough to climb out of a hole of financial need, especially with the current poor economy. If you’ve found this article’s advice really helpful, you may have all of the information you need to make responsible choices about payday loans. It always helps to be a smart consumer.