It’s not uncommon for people to struggle with figuring out what to do to pay bills. You may need a few hundred dollars right now for car repairs or some other emergency, and you can head over to a payday lender. Here are a few tips to help you with the payday loan process.
When you take out a payday loan, keep in mind that you’re essentially not getting a paycheck for the next pay period. Whatever money you borrow is going to have to cover you until the next paycheck after that, since your immediate payday will go to repay your emergency loan. If this happens, you could end up on a very unhappy debt merry-go-round.
There are various methods that payday loan companies employ to get around usury laws put in place for the protection of consumers. They tack on hidden fees which are perfectly legal. This can add up to a total amount in paid interest that exceeds the standard rates offered by regular banks by more than 10 times.
Make sure to find out all you can about the loan company you are considering. Don’t just pick a company because of their commercials. Look for online reviews form satisfied customers and find out about the company by looking at their online website. You should use a company you know will be truthful.
You must know that most payday loan lenders require you to pay them back within two weeks of loan. Emergencies come up all the time and if you can’t pay your payday loan back by its due date, you don’t have to worry about defaulting. A lot of companies have an option to roll over that will let you get an extention but it might cost you.
Evaluate several lenders to see if one offers a better interest rate than the others. Most payday lenders operate brick-and-mortar establishments, but there are also online-only lenders out there. Each company wants your business and better terms may be available. Some lenders also offer a significant discount for first time borrowers. Before choosing your lender, make sure you have looked into all of your other options.
A lot of payday loan institutions out there make you sign a contract and you will be in trouble down the line. This debt is going to be permanent; even if the borrower ends up filing for bankruptcy, the debt will still stand. They also make the borrower sign agreements not to sue the lender in the event of any dispute.
Hopefully you are now well-versed in the world of cash advances. Research as much as you can before taking out a payday loan. Keeping your finances in order is always a priority.