When money is short, payday loans may offer the immediate funds that some people need. It can seem urgent. However, you need to understand how they work before applying for them. Review the advice in this article and you can be prepared to decide if a payday loan makes sense for you.
There are many situations where a payday loan is your only option. Only choose a payday loan after all your other options have been exhausted. Try asking a close friend or family member before taking out a payday loan.
If you find yourself stuck with a payday loan that you cannot pay off, call the loan company, and lodge a complaint. Most people have legitimate complaints, about the high fees charged to extend payday loans for another pay period. Most loan companies will give you a discount on your loan fees or interest, but you don’t get if you don’t ask — so be sure to ask!
If you are considering taking out a payday loan to repay a different line of credit, stop and think about it. It may end up costing you substantially more to use this method over just paying late-payment fees on the line of credit. You will be stuck with finance charges, application fees and other fees that are associated. Think long and hard if it is worth it.
When considering taking out a payday loan, be sure you understand the repayment method. Sometimes you may have to send the lender a post dated check that they will cash on the due date. Other times, you will just have to provide them with your checking account information, and they will automatically deduct your payment from your account.
If you are thinking that you may have to default on a payday loan, think again. The loan companies collect a large amount of data from you about things like your employer, and your address. They will harass you continually until you get the loan paid off. It is better to borrow from family, sell things, or do whatever else it takes to just pay the loan off, and move on.
Make sure you select your payday loan carefully. You should consider how long you are given to pay back the loan and what the interest rates are like before choosing your payday loan. See what your best options are and then make your selection in order to save money.
If you have to pay your loan, make sure you do it on time. Lots of lenders can extend the due date for a day or two. Do bear in mind that these extensions often cost extra in fees.
If you are near a state line and loans are not available locally, you may not be out of luck. Find a state that allows payday loans and make a trip to get your loan. This may just need one trip because the lender can get their funds electronically.
There is no doubt that payday loans are a useful option for those who find themselves short of cash to pay critical household bills or cover unanticipated expenses. Do not be fooled though; sufficient research must be done before any hasty decisions are made and contracts signed. Keep this advice in mind.