Mounting bills and poor budgeting can put anyone in a financial bind they feel hopeless to escape. If this has happened to you — if you’re in financial trouble and are thinking about taking out a payday loan — then please read on for some helpful payday loan tips and advice.
Before getting a payday loan, be sure to have a repayment plan in place before you close the deal. That’s because payday loans carry extremely high interest rates along with significant penalties for non-payment. You don’t want your payday loan to cost you an arm and a leg. No matter how tempting it seems in the short term, you’ll do yourself no favours by taking out a loan you can’t repay on time.
Understand that the money you borrow with a payday loan will be paid back directly from your paycheck. You need to plan for this. Otherwise you won’t have enough money to cover your other bills when your pay period comes around. This can lock you into a vicious cycle of never-ending payments you can’t escape.
Here’s the deadline payday loan tips that everyone should know
Most payday loan lenders require you to pay them back within two weeks of your loan. If you find yourself unable to repay the money within that time, contact the lender as soon as possible. Many lenders will allow you “roll over” your loan and extend the repayment period. Some even do it automatically. But the costs associated with this process add up very, very quickly and you should avoid it wherever possible.
Think carefully about how much money you need. It’s tempting to get a loan for a lot more than your minimum needs, but the more money you ask for, the higher the interest rates you’ll pay. Take the lowest amount you need.
When getting a payday loan, ensure you give the company all required information. Provide a pay stub or other proof of your regular income as well as your personal phone number. Don’t give out false information or you may have a longer wait before getting your loan.
Having said that, use care with personal information on payday loan applications. Sensitive information such as a social security number is usually required. This can be dangerous in the wrong hands. In fact, less than scrupulous companies may sell that information to third parties and compromise your identity. Therefore you must ensure the company you’re doing business with is reputable. Check with your local Better Business Bureau and do some online research if you have any doubts.
If you’re having trouble with your finances, it can be hard to concentrate on other things. But now you should be aware of the biggest pitfalls of payday loans and understand if they’re right for you.
Amongst one of the most important payday loan tips is to remember, if you have to have cash fast, be careful about how you get it.