Things have been said against payday loans and the companies offering them. But the fact still remains that payday loans bridge the gaps between paychecks to people who have fallen short of cash or who need to pay unexpected bills. The services of payday loans help people who run out of cash to continue to sustain daily expenses or pay necessary bills before the next paycheck arrives.
It is true that getting easy, unsecured loan like payday loan has some drawbacks including high interest rates. But can borrowers have the time to think of this when they badly need emergency money? Most may answer "no" since many people act through their impulses; and when desperation comes, they are not really concerned about the future effects of their current actions. But impulse should not be an excuse to neglect the repercussions of borrowing money from these companies because in the end, it is not the lender who will suffer; it is the borrower.
So if you badly need money to make both ends meet, you should know how to carefully decide when to acquire payday loans and how to get the best of them.
When to acquire payday loans?
If you need cash now, you have tried all the possible alternatives to acquire money, and you have nowhere else to go to lend money, then it is probably time to consider applying for a payday loan. In other words, apply for payday loan as a last resort-- use the service of this loan vehicle in dire emergencies only.
How to get the best of payday loan?
One word: think! Can you save more on payday loans than borrowing from other loan vehicles? Can you survive another day without borrowing from payday loan?
Suppose there is a weekend computer sale but you are $100 short. Your paycheck is Monday and if you let the sale passes the regular price will draw you back at least $100. If you think the savings you will get from the weekend sale is more than the interest you will pay for the loan, then it is wise to apply for a payday loan. But if the interest is larger than your actual savings on the item on sale you wish to buy, then what's the point of buying the computer at discount price only to pay more from the loan interest?
Ask for extension from your creditors before taking payday loan. If you cannot ask for extension, then it is time to apply for payday loan.
Borrow only the amount you need! Payday loan usually works with "x percent interest for every $100 borrowed a week "-system. So the larger amount you borrow, the more interest you pay. That is why never ever borrow the money you don't need. Save the luxury of having extra dollars on your wallet when your payday arrives and borrow only the amount you need for the certain emergency bill or budget.
Pay immediately! Remember that you are paying interest per week so once you have the money to pay for the amount you borrowed, do not hesitate to pay them all immediately. The longer you pay the loan off, the larger amount you will have to throw away. Allowing this to happen will surely place you under a great financial problems in few weeks time.
Borrow only once! Companies offering payday loans have several attractive incentives to repeat costumers. But do not be lured to this kind of marketing strategy because no matter how much discount you will get on the second or third loan application, you will still have to pay a considerable amount of interest that will draw you further down to financial problem.
Getting the best of something, including payday loans means weighting over benefits and gains. The best is not the best if you end up loser and into deeper financial trouble. The US Federal Trade Commission encourages borrowers to avoid payday loans but again, if you have exhausted all the alternatives to get instant cash, then it may be the right time to consider payday loans. Just make sure that you can cope with the additional burden of paying the interest rate the loan has.
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