Many people are constantly asking me how to get a payday loan so I thought this would be a good topic to tackle today.
Before we get started on how to find and secure a payday loan I want you to make sure you really need to go this route, as it is a risky and expensive way to borrow money.
I understand there are times when we just run short and have to find a bit extra to make all the ends meet, but this can also backfire with some real serious consequences, so please be sure you understand all that can go wrong before you proceed with your payday loan.
You will need to have a job that pays at least $800.00 a month and a checking or savings account to qualify for a payday loan.
The average loan is usually between $500 and $1000 dollars, and is due on your next payday, be it weekly, bi-weekly or monthly.
You will be charged a fee to borrow the money, plus interest which can be quite high, but if you understand what these fees and interest amounts are and know ahead of time then you can pay the loan back in full on your first due date and you will be fine. It is very important to not borrow more than you can pay back on that first due date and that figure must include fees and interest.
Most payday loan companies give you the option of rolling over your payday loan if you can not pay it off on the due date, and we highly recommend you not do this. This practice always leads to high loan costs and many times default of the loan.
If you are still short on your payday pay the loan down as far as you can. You will be charged a whole new batch of interest and fees so the lower you get the loan, the smaller the fees.
Online verses store front loans
It is very important that you understand the terms of your loan because there is a huge difference on how these loans work between online loans and storefront loans.
Storefront loans are pretty cut and dried. You borrow a set amount and the fees and interest are added to create your total loan amount. That amount is due on your next payday. If you can not pay that amount you must get hold of the loan company usually 3 days before the due date and let them know if you need to roll it over or pay it down and extend the difference.
If you do not get hold of the storefront loan company they will take the whole total out of your checking or savings account on the due date and it will be a done deal.
Online loans are a whole different animal, and you must be aware of how they work or you can end up in serious debt rather quickly.
You must get hold of the online loan company within 3 days of the due date and let them know how much you want to pay on the due date.
If you do not get hold of them they will only take out the fees and interest of your loan and you will still owe the original loan amount plus new fees and interest.
Here is an example:
You borrow $500.00 online for two weeks.The total fees and interest add up to $150.00 giving you a total of $650.00 owed on your next payday.
You forget to call this company within 3 days of your due date so on the due date this online company will take out the $150.00 fee and interest and you will still owe the $500.00 plus an additional $150.00 in fees and interest with a total of $650.00.
In other words, you just paid $150.00 to borrow $500.00 fro two weeks and still owe the same amount you owed before the due date.
This can add up to huge debt in no time, so make sure you pay the online loan off in full on the first due date and call then within the 3 days to tell them that!
Payday loans can be used safely but you must understand how they work and what you can afford.
It is easy to get caught in the payday loan trap and getting out of it can be a very difficult thing to do.
Follow our tips here and pay that loan off on your first due date and you will be OK, and you will not have to worry about any traps that may be waiting for the unsuspected.
Thanks for visiting us and happy borrowing!
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