Are you having trouble paying a bill right now? Do you need a few more dollars to get you through the week? A payday loan may be what you need. If you don’t know what that is, it is a short-term loan, that is easy for most people to get. However, the following tips inform you of some things you need to know first.
Beware of falling into a trap with payday loans. In theory, you would pay the loan back in one to two weeks, then move on with your life. In reality, however, many people cannot afford to pay off the loan, and the balance keeps rolling over to their next paycheck, accumulating huge amounts of interest through the process. In this case, some people get into the position where they can never afford to pay off the loan.
One way to make sure that you are getting a payday loan from a trusted lender is to seek out reviews for various payday loan companies. Doing this will help you differentiate legit lenders from scams that are just trying to steal your money. Make sure you do adequate research.
You should know the provisions of the loan before you commit. People are shocked at the fees that come with these loans. It’s important to ask them what you’ll be charged when you’re inquiring.
Payday loans are only short term loans and need to be paid back in under a month. It is necessary to have funds available for repayment in a very short period, usually two weeks. This will apply in most cases, unless the date of your next payday occurs less than one week after receiving the loan. You can get an additional three weeks to pay your loan back if you apply for it only a week after you get a paycheck.
If you are unable to pay your loan in time, try to get an extension. Sometimes, a loan company will offer a 1 or 2 day extension on your deadline. You should know that you might have to pay some fees if this is the case.
If you are considering getting a payday loan, make sure that you have a plan to get it paid off right away. The loan company will offer to “help you” and extend your loan, if you can’t pay it off right away. This extension costs you a fee, plus additional interest, so it does nothing positive for you. However, it earns the loan company a nice profit.
It is important that you know that you can pay back whatever money you take out. If you miss payments, this company can still try to get what you owe them. If you overdraft your account, your bank will charge you fees on top of the extra money you will now owe the payday lender. You have to have money available to ensure this situation doesn’t happen to you.
If you find that you can’t pay back your payday loan on the agreed date, you should not hide from lenders. Although the interest rates are high and the repayment schedule is steep, a payday loan can definitely help to save you in a jam. So, if you can’t pay back your payday loan in full on the agreed payback date, you should contact the payday loan provider, and negotiate an extension.
If you have a payday loan taken out, find something in the experience to complain about and then call in and start a rant. Customer service operators are always allowed an automatic discount, fee waiver or perk to hand out, such as a free or discounted extension. Do it once to get a better deal, but don’t do it twice or else risk burning bridges.
If you are in need of fast cash, and are looking into payday loans, you should always avoid taking out more than one loan at a time. While it might be tempting to go to different lenders, it will be much harder to pay back the loans, if you have many of them.
Always be sure that you have the funds to make the payments when they are due. It’s called a payday loan for a reason. You should make sure you’re employed and have a solid way to pay down the bill. Look for a lender who is willing to give you an extended loan period.
Do not lie about your income in order to qualify for a payday loan. This is not a good idea because they will lend you more than you can comfortably afford to pay them back. As a result, you will end up in a worse financial situation than you were already in.
Whenever you are applying for a payday loan, you should never hesitate to ask questions. If you are confused about something, in particular, it is your responsibility to ask for clarification. This will help you understand the terms and conditions of your loans so that you won’t get any unwanted surprises.
Determine the lender’s state of origin. State laws vary when it comes to lending caps. Oftentimes, shady payday lenders will operate overseas or in states that do not have strict lending laws. When you find out what state they are based in, find out the laws there.
If you make the decision that a short-term loan, or a payday loan, is right for you, apply soon. Just make sure you keep in mind all the tips in this article. These tips give you a solid foundation for making sure you protect yourself, so that you can get the loan and easily pay it back.