From time to time a person can come up a little short on cash before their next paycheck is due to come in. One solution to this is a payday loan. There are several different places that offer payday loans. It works somewhat like a cash advance only it comes through a different business rather than through your employer. These are specialized businesses set up to give you loans based on the fact that you are going to receive another pay check. Some are based on the Internet, others are businesses that you walk in to and do business with face to face. The money that they offer can be used anywhere from one to four weeks.
These short term loans are unsecured in nature for the fulfillment of short term expenses. You are charged a bit higher rate of interest for the money you borrow, because of unsecured nature of these Direct payday lenders no third party. Wise use of cash is recommended as you are already being charged high. The money is yours but you must keep in mind that after all, you are indebted.
Start getting into the habit of paying cash or paying with your debit card. Paying with cash helps you manage your budget, and it restricts you to the amount of things you can buy. If you can’t afford it, don’t buy it. In the long run, this will help you with management skills when it comes to paying down on your bank cards and personal debt. Use your debit card on emergency bases only. Debit cards can cost you with over the limit fees and insufficient fund fees if you don’t track your spending.
The sole benefit of using an online payday lender is the convenience of getting all the work done at your home and not entering the payday loan establishment. This process is more discreet. Most of the online payday lenders have the ability to rollover a loan at the end of the term by deducting the amount of the interest from the borrower’s account at the end of the term and renewing the loan for another term.
Many of the online lenders will happily quote you the fee before you apply but many do not tell you the APR or annual percentage rate unless you ask. You want to make sure to ask.
When you go to the loan company to get the loan you show them proof of employment and then write them a postdated check for the amount that you are borrowing plus a fee. This fee is a lender fee but it does not include the interest rate. The fee really isn’t that high but the interest rate will be. If you don’t pay the interest rate the loan company will begin calling you or your place of employment to collect on the outstanding money owed.
But for those who try to roll these loans over until another payday, aside from the first one it was set up for, they can find themselves headed toward trouble. These loans are great, but only if you pay them off quickly. And never borrow more than just exactly what you need. Should you find you have enough money before your next paycheck to pay the loan off, it’s a good idea to do so. You never know what circumstance will arise on any given day. If it’s paid off, and you should need it again, then it’s no problem. But once you ruin your credit with the payday loan lenders, you really have put yourself in a box.