You've seen the advertisements for quick cash advance payments and you're in
a debt that needs immediate attention. You can't wait until payday, so it seems
like a great alternative to help you out this month. While millions of people
take advantage of these exciting offers, be sure not to get burned by the terms
of these payday loans.
The method these payday lending companies use to sell their products to the
general public are slightly deceiving. We all know by now to be more informed
as consumers and when you're borrowing money that attaches interest you need to
be even more knowledgeable when it comes to your loan purchases. Needing money
in a flash is really no stranger to any of us, we have all been there! My first
piece of advice is to really exhaust all of your other options for loans before
you take the payday loan plunge. Look into borrowing money from family, friends
or coworkers before you pay interest and sign a contract when you may not need
to do that at all. For most people, a payday loan doesn't usually consist of a
large amount of cash, they typically base what they're willing to lend you on
how much you bring in each month for income.
To be even more specific, it's usually what you make each paycheck, so we
aren't talking a huge amount of money when we seek a payday loan. If you do
need to apply for one, then be thorough when reading the fine print during the
application process. That process works by you submitting your personal
information as in social security number, checking account information, date of
birth, current employment info and what your salary may be. They then work with
you to determine a final amount of the payday loan that you would qualify for.
Once you are approved they will ask that you submit a postdated check in the
amount of your loan payment made out to them and forward it their way. The
lender then deposits the loan amount into your personal checking account and
when you get paid next (as in the agreed upon date you postdated the check to
them) they get their payment back for the amount they fronted you.
Now, as appealing as that may all sound beware of the fine print as I stated
earlier. No business would just lend money out of the goodness of their hearts
without benefiting from it at some level would they? No they wouldn't, so these
companies make their profit off of the interest that they apply to your payday
loans. Which can be an insane rate that most people just accept due to their
urgent debts that leave them with little options. If you've read the terms to
your loan and decide to continue through with the process then just make it a
priority to repay it as stated in your contract. Not doing so will not only
destroy your credit rating, but haunt you with court dates and attorneys fees
from the lending agency pursuing you to retain their money. The longer you
prolong repayment to them, they are allowed by law to continue raising your
interest on a loan that may have once been five hundred dollars to increasing
to over three times that if not repaid in a timely fashion.
