While payday loans, also called payday advance loans, may have a bad rap, they really are great options to use when you need cash fast and have no other way to get it. If you are stuck in a situation where you need some money, getting a payday loan could be your solution, as long as you know how to use these loans responsibly. Here are three tips to help you use them correctly; following these tips will help you avoid the common problems people end up with because of these loans.
Take One Only if You Really Need It
The first step with taking a payday loan is determining if there really is a need for one. If you write down all your expenses and calculate how much income you have, is there a way to get by without taking the loan? If the answer is no, then you should apply for a payday loan today.
If you can find a way to get around needing one of these loans, try that option first. You might be able to manage without borrowing from a payday lender. Here are some methods that might work for you:
- Skip paying a different bill – if you can get by without paying something else that you were planning on paying, you might be able to avoid a payday advance.
- Borrow from a family member – some people have the option of asking a family member for a loan. This option may allow you to borrow money without paying interest on it, and this could help you save money.
- Take a cash advance from a credit card – if you have a credit card with available credit, find out if you could take a cash advance. While you would have to pay interest on the money, the interest might be lower than what you would pay with a payday loan.
If you find that you cannot get by without a loan and have no other options, choosing a payday loan would be a sensible option.
Know Exactly What You Are Getting
After you make the decision to get a payday loan, make sure you know exactly what you are getting before signing the paperwork. You should find out:
- How much money you will actually receive from the proceeds – some lenders take the fees from the proceeds and leave you with a lower amount than you think you will get.
- What the fees are in all – finding out the total cost of the loan is important, and you should realize that it is not unlikely for a loan like this to have an annual interest rate of over 400%. While this may seem high, it is normal and should be expected.
- Due date – you must know exactly when the debt is due, the amount you must pay, and the options you have for making the payment. Some lenders will debit the full amount out of the borrower's checking account on the due date, while others will ask for a post-dated check when issuing the loan.
If you know these things, you will not have to worry about surprises with the loan and repayment plan.
Make a Plan to Repay the Loan when Due
Finally, if you take a payday loan you must make a plan to repay it on time. While the fees may be high just for taking the loan, they may be worse if you have to extend the due date. Paying the full balance on time is the best route to take, and it will be the cheapest way to handle this.
You must do whatever you have to do to pay the balance in full on the due date, even if this means borrowing the money or not paying a different bill.
Using payday loans for emergencies is a great solution, but using them wisely is vital. When the time comes for you to take a payday loan, keep these tips in mind to avoid problems and excessive fees. For more information, visit http://www.EZcheckcashadvance.com.