Payday loans are often vilified ed by those who do not know how they work or have had bad experiences with them. However, they remain one of the most common types of online loans available to the public. Here are 5 tips for first time borrowers to avoid a bad experience.
Shop for a payday lender. Compare interest rates and fees. You can do it online as well as in person. Don’t just walk into the nearest lender and assume it’s the best deal because it’s the closest place. Direct lender in another State may be able to offer you a lower interest rate or a fee than a payday lender in your neighborhood. Lenders allow you to purchase a payday loan from the eighteen states in the United States that have essentially banned the practice. The other advantage of online payday lenders is that those who are not bound by the laws of your state may be able to offer much larger advances against your salary, up to more than a thousand dollars, while other states.
Use a reputable company-PAYDAYLOANSBUNNY.COM
Many lender horror stories involve unsavory companies harassing and threatening customers with prison for payment delays, although you may not be able to deal with criminal penalties for failure to pay a Ready. There are troubleshooting companies that charge excessive fees, the maximum interest rate and even clear someone’s bank account to repay the entire balance if the customer did not expect a renewal fee withdrawal. PAYDAYLOANSBUNNY.com works with reputable payday lenders and the process of getting instant online loans is quick and easy!
Plan the payment
Make sure you work enough hours at work to pay for the payday loan. If your employer is programing you for thirty hours and you plan to work forty hours, tell the employer why you need overtime-or start looking for additional jobs elsewhere to ensure Repay the loan and pay your other bills.
Expect your payday loan to be due on the day following your payment by your employer; do so that your payday loan payment is not bounced because your salary has not yet been compensated. Many payday lenders require access to your bank account to ensure their reimbursement, and they can try to withdraw money several times-which generates bank overdraft fees each time. If you hand over a postdated cheque to the payday lender, you will have to pay the same fee as if you are trying to cash out the cheque you wrote because you believe the money will be there. If you have a savings account, the easiest solution would be to link the check and savings accounts to avoid overdraft charges or at least pay the overdraft fee without additional penalties or closing your account if there is not enough Money to repay the loan.
If you have to pay the payment on the day you get paid, arrange the direct deposit of your paycheck or receive a paper check that you can cash. If you are going to use a cashed cheque to pay the payday loan, do not cash it at the lender’s office-their cheque cashing fees will be added to the total bill. Another option is to contact human resources and ask if you can get an advance through your next paycheck; Not all companies offer you this option, but they are less expensive than online payday loans.
You must also predict the balance of the account so that other cheques will not be reimbursed when the payday loan is paid. You cannot risk bouncing all your bills and accumulating multiple unpaid cheques or even risking imprisonment for unprovided cheques. Contact your partner so you don’t spend the money in the account that needs to go to the bills, including your instant online loan.
If you try to get out of debt, pay the payday lender first. They usually have the highest interest rate and the best access to your bank account. On the other hand, it takes months for a credit card company to take legal action to seize your wages and they are more likely to settle the debt at a lower price. Don’t try to run away from instant loans because they have all the information to get an order to garnish your paycheck quickly for unpaid debt.
Consider options before renewing a payday loan
Instead of renewing the payday loan for another pay cycle, which increases the fees and interest rate you will pay, looking for an online installment loan with another lender to repay the payday loan. Installment loans with the current payday lender is the second choice in this case, with the added benefit of being able to extend the loan term to reduce the payment due each month for several months.
Consider selling items to increase the money to repay or repay the payday loan instead of paying the fees and interest again on another online loan. Working extra jobs or taking odd jobs to repay the loan are also options.
If you need to renew the loan, clearly indicate whether you want the renewal fee to be taken from your account or the renewal fee plus the payment of your debt. If you do not make a payment against what you owe, the overall balance will only increase.
Read loan Documents
They may ask you to inform them in writing a number of days before the payment of the project if you want to delay the payment. A phone call in these cases asking them to delay the bank draft will not work-and the contract told you from the outset. They want a written letter, a fax or an e-mail that proves that you want the payment authority to be revoked. This protects both parties in the case, as it generates proof that you actually requested the end of the withdrawals.
The lender can specify in the loan document that they can contact family members and employers by trying to reach you for reimbursement. This information is often required as part of the payday loan application. If you do not want to be called to work, do not put the phone number of the company but rather another cell phone number. Do not list someone as a contact or reference if you do not want the risk that the lender will call them when you are late.
Another thing that people miss by not reading the loan documents is whether or not they give the payday lender “continuous payment authority” or CPA. If the postdated cheque combined with the contract gives the lender the ongoing payment power, it may continue to deduct the amount due from your account until it is refunded. You cannot terminate these withdrawals without paying back the loan, by accepting a new contract with different conditions or by completely closing the bank account. Note however that if you close the bank account that the lender takes money and you do not contact him to find out how to make the next payment, he can sue you and seize your pay for the unpaid debt plus the cost of Justice. and attorney’s fees.
Do your research before taking an instant online loan regarding the reputation of the lender and their interest rates and fees. Read the contract before you sign it, and go somewhere else if it’s a bad deal. Plan ahead of time how you will repay the loan, ideally in its entirety, and ensure that you are not hit with a non-reserve check fee or excessive penalties. Consider options other than renewing the payday loan before renewing it, and if you renewed the payday loan, make sure you make progress by paying back the debt to minimize the overall cost of the loan.