Financial stress during a crisis often threatens to break you. You may feel like there is no where to turn. If you have wondered if a payday loan is the right answer, continue reading for some helpful information.
It’s not uncommon for people to think about applying for cash advance loans to help cover an emergency bill. Look into other options first; you might be able to save money by avoiding payday cash advances. Payday advances are a resource you might want to consider when you’re in a financial bind.
Payday lenders know their way around usury laws. These loans cost a specific amount (say $15 per $100 lent), that are just interest disguised as fees. After it’s all said and done, the interest rate can be ten times a standard one.
Checking Account
A lot of payday lenders require a checking account. This is due to the fact that a lot of these companies tend to use direct payments from the borrower’s checking account when your loan is due. The repayment amount will be withdrawn the same day your paycheck is expected to be deposited.
Understand the penalties for late payments. When you agreed to the loan, no doubt you intended to pay on time, but any situation can change. You need to go through the fine print carefully to know the potential penalties if you fall behind. The penalties and fees associated with payday cash advances are quite steep.
Most of the payday lenders make their customers sign complicated agreements that offers the lender protection in case there is a dispute. Lenders’ debts are not discharged when borrowers file bankruptcy. It is also common that you will be asked to sign agreements that you will not take legal action against them.
This article should have given you an idea on what to do. If you do plan to seek a payday loan, make certain you understand what you might be getting into.