Particularly in times when the economy is struggling, financial struggles are common. Sometimes even the best planning won't protect you from a financial emergency. If you're facing an unexpected expense and you need money fast, you may find that a payday loan is the best option to get you what you need. These loans are designed to be short-term and can come with high interest rates, so here are some tips to help you approach the process responsibly.
Know How Much You're Paying
If you're in a situation where you need money quickly, you may not be as attentive to the details as you should be. Make sure that you take the time to review the details of the loan, including the fees and interest on the loan. This is important, because you need to know exactly how much you'll have to pay on the due date, which is typically only a week or two from the loan date.
Pay It Off On Time
Make every possible effort to pay the loan balance in full on the due date. Most places will allow you to extend the loan if needed, but you'll pay more interest over the period if you do. Save the additional cost whenever possible by paying it in full right away.
Budget your money accordingly so that you can pay your loan by the due date. If you miss the payment, most payday loan services have the authorization to debit your account automatically. This can cause an overdraft, which will cost you even more in service fees from your bank as well. In addition, late payments often lead to increased interest rates, which can add up quickly.
If you find that you need more money than you'll be able to pay back within a couple of weeks, you may want to look for a lender who offers more long-term loans. These lenders will often provide a variety of loan packages that could help to meet your needs. You may be able to secure a payday loan that you can pay back over a month or more.
Know Who You're Borrowing From
When you decide to apply for a payday loan, make sure that you're working directly with a payday loan lender. Sometimes, borrowing through a third party can cost you more in fees, because the third-party lender will add fees to make a profit. Work directly with a payday loan lender to make sure you're getting the best deal.
In addition, take time to shop the interest rates. You'll find that interest rates can vary from lender to lender, so shopping around may save you significantly in the final payment amount. In fact, you may even be able to find a promotional offer designed for first-time borrowers.
Be Thorough And Accurate
When you're ready to fill out the application, make sure that you have all of the supporting information that you'll need. Payday loans are different from traditional loans in terms of the required documentation. In most cases, all you need is your current identification, bank account information and your last several pay stubs.
Since each lender has unique requirements, you may want to call ahead to be sure that you have everything you need before you arrive. Make sure that everything on the application is accurate. Any false or misleading information could lead to fraud charges and may make it harder for you to secure a loan again in the future.
Payday loans are a convenient way to get money quickly when you're facing a financial emergency. Understanding how to handle these loans is the first step to successfully meeting your financial needs, even at the last minute. Click here for more info about your loan.
Share6 October 2014
When I started thinking about my life, I realized that I was spending a lot more money than I should be every month on little extras. I wanted to streamline things, so I decided to start focusing on getting my finances in order. I started looking around my house, and I was pleased to discover that there were more than a few things I could sell for a little extra cash. I put them online, and I was amazed to see how quickly they sold. After selling some things, I was able to get my finances in order, which was a huge relief. This blog is all about getting your finances in order.