| Let’s be honest, no one wants to walk into a payday loan company and ask for money. In the perfect world, emergencies and unexpected bills would simply not exist. But, unfortunately, each and every one of us will have to deal with these bills and occurrences more often than we want. In these cases, going to the payday loan company may be the best solution. What else can you do? You need money and you need it, well, yesterday! |
| One of the first things that should be done when you are considering a payday loan is to consider which payday loan source will request your loan from. You already know they are going to charge you a fee, but do you know how much? Do you know who has the best rate? Who can you trust to be honest? In order to know the answers to these things, you will have to invest in doing some basic research. Just by sitting at a table with a pad of paper and the phone, you can call and speak with payday loan officers and find out the best rates and fees. It can be that simple. If a company seems to be misleading, simply do not go to that company. There are plenty of payday loan and quick payday loan companies out there that can help you. There are even Internet payday loan companies that will have your money in your bank account within 24 hours or less. |
| Once you know who you are going to use for your payday loan, you will want to make sure you know what the fees are all about before signing on the dotted line. But, what can you expect to pay in fees? What kind of fees are there? The information you will need is in the contracts you will sign. Read them, ask questions, and understand them. Ask the loan representative to help you understand what is expected as far as fees go. |
| The average fees for the use of a payday loan are around fifteen dollars on every one hundred dollars that you borrow. Most payday loan companies will loan up to $500 to a single client in a single transaction. Depending on the amount you borrow, you can expect to pay about that type of fee. But, remember that fees change from one payday loaning company to the next. Also there may be “loan initiation fees” or other hidden fees. Be sure you fully understand the loan you are accepting.
But, there is something else that is very important that you simply must know. What are the fees and repercussions of not paying back the loan on time? Yes, we can say until we are blue in the face that this does not matter, but in reality, emergencies and the unexpected do happen -- quite often in fact. You should know, just for the sake of knowing, what will happen if you do not pay your loan back on time. For most companies, you will simply roll over the balance of your loan into another payday loan. In essence, you will be opening a new loan to pay off the old one. So, in most cases, guess what else is involved? You got it! Another fee. In most cases, this fee is the same one that you paid in the previous or first loan.
But, things can go very wrong here. Let’s say that you keep doing this. If you only borrowed two hundred dollars, but had to roll the loan over again and again, how much would you end up paying? Would you end up paying more fees than the original loan was for? In some cases, people do end up doing just this. In most cases, people will not purposefully do this. In fact, just about everyone plans to pay off there payday loan the first time.
But, what if you don’t bother contacting the payday loan or cash advance company if you don’t have the money? Do you think they will simply send you a bill in the mail? Wrong. They are going to cash the check that you wrote in the first place to pay back the money. If the check bounces, there will be returned funds fees in addition to the fees for rolling over the loan. On top of that, your bank may also charge you an additional fee. What was once two hundred dollars is not way out of control. You can see where this could get bad, right?
Lastly, think of this figure about the interest rates of payday loans or cash advance loans. While you may only think of it as fifteen dollars on every hundred dollars, the short amount of time that is allowed for the loan to be paid makes the annual percentage rate for your payday loan… Are you ready for this? You may want to take a seat! The average person ends up paying a 400% annual percentage rate on their payday loan. Can you handle that? |
