Payday loans are typically used for emergency situations but they can be used for anything. That being said, payday loans can be dangerous if you don’t plan for them. Let’s have a look at some things you should be considering as you plan your next payday loan.
Read the Small Print
Payday loans are not part of a long-term financial solution. Most carry hidden fees. These fees can amount to paying back ten times what you borrowed! Before applying for a payday loan, request documentation from the company, specific to hidden fees associated with the agreement.
Borrowing from Peter
It’s tempting to go from lender to lender, borrowing from one to pay back the next. This would take a tremendous amount of planning to pull off without finding yourself buried in fines and fees. Borrow what you need and work overtime to pay back what you owe.
Don’t Be Fooled
Payday lenders are in business. They have a job to do, just like you, so they need to convince borrowers that they have the best rate and can offer the most money with little hassle on your part. There are thousands of payday lenders out there right now. Do your research. You may want to stick with a local payday lender as opposed to someone online, as online lenders are not as well regulated.
Ask for an Extension
If anything does come up and you know you will default on your payment, call your payday lender and ask for an extension. It might seem easier to just let the billing cycle roll over and wait for a bill in the mail. However, the cost associated with making that painful call will be far less than if you try to disappear until you have the money.
Have Cash on Hand
Make sure you have enough money to pay back the loan in the bank or on hand before you apply. This way, you won’t run into any late payment issues. Before you apply, make sure you have positive identification, as well as proof of income and a checking account.