Online payday loans are different in many ways that a regular payday loan from a brick and mortar payday loan store.
When getting payday loans online you must read all of the fine print and understand exactly how they collect their money and what kinds of traps they have built into these loans.
We have a post on payday loan information we recommend to every first time payday loan user.
The ease of getting your loan approved and deposited into your bank account, many times within hours of applying, can be very convenient.
It can also lead to not paying attention to the details and ending up in some serious financial trouble extremely quickly.
To avoid this kind of results, we here at Help With Payday Loan Debt have put together a guide for you to follow when dealing with these companies online.
The important facts
The first thing to remember is the difference between online payday loans and storefront loans.
A storefront loan will grant you a loan and collect it with a post-dated check that they present to your bank on the due date of the loan.
These loans are usually set up to be paid in full on the due date, and while many companies offer you the opportunity to roll over or extend the loan, you will have to physically go to the payday loan store and rewrite the loan and present them with another check for payment to actually extend that loan.
Online payday loans are a whole different ballgame.
These guys set your loan up to roll over by itself every time the loans due date comes around.
In other words, say you borrow $500.00 with $150.00 interest charge, the standard 2-week online charge or fee, and you get paid every two weeks. This loan would have a total of $650.00 due on your next payday, right?
This loan, UNLESS you call the loan company at least 3 days before the due date and tell them how much you want to be paid out of your account t words this loan, will just automatically charge your account the free only of $150.00 and add a new $150.00 fee to the total of your loan.
Now you still have a $650.00 loan balance due in 2 weeks, and you just paid $150.00 to borrow $500.00 for two weeks.
Can you see how fast this trap can bury you in debt?
The only way to avoid this is to make sure you understand to call them 3 days before the loan comes due and tell them you want the whole balance paid in full.
Make sure you have the $650.00 in the bank and this business will be over.
Payday loans online can be a real dangerous way of borrowing money if you do not understand what you are getting into.
If you must use these companies make sure you understand every detail and follow the easiest path to getting them paid in full!
I hope this guide helps you make a healthy choice when dealing with these companies!