Shaping Your Financial Future

Shaping Your Financial Future

3 Things to Consider before Getting a Payday Loan

by Angie Wells

Payday loans are a godsend when something unexpected happens and you don't have the money to pay for it. Whether it's a visit to the hospital, a major repair done on your car, or financial trouble at work, payday loans can help you navigate uncertain terrain with the knowledge that all your bills will still be paid on time. That said, there are several things you should keep in mind before signing your name on the dotted line. Check out three things below that will get you the best deal possible on your payday loan. 

Extra Fees

Fees aren't all bad—some are simple processing fees that total no more than a few dollars. But others can multiply the amount you owe several times over and have you scrambling for even more money. When reviewing the agreement for a payday loan, many people focus solely on the interest rate, which is also important. But while payday loan interest rates are strictly regulated, extra fees are not. This means that one lender with a high interest rate (and no extra fees) could actually make for a better deal overall than one that advertises a low interest rate but includes several fees on top of the original loan amount.

Bank Accounts

In the worst-case scenario, you may be unable to pay back your payday loans on time or in full. In these cases, the lender is allowed to withdraw the necessary funds from your bank account. So before applying for a payday loan, make sure that you have enough in your bank account to cover at least partial repayment of your loan. If you don't, it could mean a barrage of extra fees from your bank, which may set you back indefinitely and cost you more money than the loan is worth.

Qualifying for a Loan

Some people are under the impression that they can qualify for any amount of money. But in almost every case, loans are dependent on your income. If you need more money than you qualify for, consider asking a relative or friend you trust (and who qualifies) to take out a payday loan on your behalf. This adds an extra step to the loan process, but it can be invaluable if you need just a couple hundred dollars more than what is being offered by various lenders. 

For more information or to see what you qualify for, contact a service like Money 4 You today.


About Me

Shaping Your Financial Future

A few years ago, I found myself in a tough spot. I was completely out of money, and my expenses kept piling up. I knew that if I didn't turn things around, I would be declaring bankruptcy for my business. To ward off financial disaster, I decided to invest a little time into learning how to budget. I made a few simple changes, including eating out less, paying attention to fines and fees, and avoiding excessive shopping trips. You wouldn't believe how quickly things changed. This blog is designed to teach beginners how to shape their financial future, so that you don't have to worry.