Last week I discussed a few ways that you can get a loan if you are unemployed. One of those options was to apply for a payday loan. I stated that I’m not a fan of them at all. Some people might view them differently.
When a financial crisis occurs in someone’s life, they may or may not be ready for it. It can be a very stressful time. Imagine being unemployed and then something else happens that causes you to need money soon. That would be a disaster. You would need a way to find a loan if you’re unemployed fast! The payday loan option might be your only choice. You should understand exactly what a payday loan is before taking one out. Those loans are generally granted by companies that are not banks. They don’t follow the regulations that banks have to. They lend small sums of money to people that need it. The loans don’t require that much paperwork. Most people can qualify for them. They usually have to be repaid in two weeks.
If you are desperate for cash, a payday loan is a good solution for you. Before you go through with this type of loan, you need to know as much about it before you accept the terms. Payday loans charge ridiculously high-interest rates and fees. It’s hard to pay the loan back within two weeks.
The lender will have you sign a contract to protect them during the relationship. I know you need the money, but I want to stress to you that you should make sure that you read the contract in its entirety. One of the terms states that if you are declaring bankruptcy, the payday loan debt won’t be discharged. If it’s not discharged, I’m sure that you will still be getting charged interest. Who would want to deal with a loan like that? The payday lenders have you sign those documents early on to avoid disputes that could go against the creditor.
When determining if a payday loan is right for you, you should know that the amount most lenders will let you borrow is about $1000. It may be lower depending on your income.
Make sure that you keep your personal safety in mind if you have to visit a payday lenders office. These places handle large sums of cash and are usually not located on the best sides of town. Only visit them during daylight hours and park in visible areas. Make sure that you put your cash up before you leave the building. You don’t want to come out flashing it.
Some payday companies are fair to their borrowers. Make sure that you take the time to investigate several companies. You want to go with the company that has the best fees. A lot of them don’t care about you. They just want to approve you for a loan that charges a high-interest rate. Find a lender that understands your situation and have low fees. That way you will be able to repay the loan off sooner. If you’re lucky, you might be able to find a lender that is willing to extend your loans if you cannot pay them on the due date.
If you plan on takin out a payday loan, research all the competitors. Review in-store and online loans.
Have you ever had to use a payday loan?
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