Be Careful That Payday Loans Don’t Take Over Your Finances
An article by Firoz Patel Last updated on
Being short on cash may be bad in some situations. Thankfully, there are ways to get money quick. Payday lenders are ubiquitous these days, and offer an easy, if expensive, option for those who need cash now. You may be amazed at how quickly you are able to get the needed funds. Read this article to learn more about payday loans.
If you must consider a payday loan, take time to understand what the true costs of the loan are. There are some companies that will charge you an interest rate of 200 precent or more. Many lenders will use loopholes to make their interest rates even higher.
There are many different companies that offer payday loans. Research all of the information about a company so that you do not get scammed. In particular, look through customer reviews. You can do an online search of the company and read customer reviews.
When applying for payday loans, make sure you pay them back as soon as they’re due. Never extend them. Extensions will only add on more interest and it will be more difficult to pay them back.
Whenever the due date of your payday loan arrives and you can’t pay it back, you should immediately contact the lender and see if you can get an extension. Many companies will let you have an extra day or two to pay if you need it. Although, you will be charged an additional fee.
Avoid the feeling of financial relief once you have the money from your payday loan. Put your paperwork in a safe place, and write down the payoff date for your loan on the calendar. If you fail to pay on time, you will end up with a large debt and collection agencies contacting you.
You want to chose a payday loan company that offers direct deposit. This allows the lender to put the funds into your account by the next day. This is convenient and safe since you don’t have to carry a lot of cash with you in this case.
You are going to need to have your employment record in shape if you intend to secure a payday loan. Most payday lenders want to see at least three months of steady work with a stable income before they will grant you a loan. You will have to give proof of your income when you apply for the loan.
Check with the BBB to be certain the payday lender you are considering has a good rating. Prior to signing any loan documents, get in touch with your local Better Business Bureau office to ascertain if any complaints have been lodged against the firm. If you find a large number of complaints about the lender, consider finding an alternative.
Now you have more information about payday loans. By implementing the advice you have learned above, you can find a loan with good rates from a reputable company. However, you may have learned that a payday loan is not the right answer to your financial struggles. Either way, you’re more informed due to proper research before making a decision.
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About the Author: Firoz Patel
In 2005, I founded AlertPay Inc. – a versatile and globally-used online payments solution. As Chief Executive Officer, I directed and oversaw the entire operations of the organization. I have successfully brokered the acquisition of AlertPay's strategic assets by UK-based MH Pillars.
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