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Pay Day Loan Advice

Updated on July 29, 2011

Pay Day Loan Advice

Having used pay day lenders I can tell you that they are a mixed blessing. These loans are easy to get provided you meet a few simple qualifications but, as you know, they must be repaid with interest. The interest rates on these short term loans can be in the triple digits. By making only the minimum payments, one can easily expect to pay the lender twice the amount borrowed. If you pay the whole payday advance on the first due date, the fees are much more realistic. Because these loans can be so profitable for the lender, there is much competition in the industry. Follow these steps to get the most out of your loan.

Borrow only what you need

It is tempting to take out a loan for more money than you need. However, this loan will need to be repaid at a high rate of interest. If you take out a loan for more that what you need, you will pay back much more to the lender in the form of interest. This can make paying back your loan harder on you financially and can lead to you making payments for less than the full amount. The longer you drag out the payback process, the more interest it will cost you and the more money you will have to pay the lender.

Shop around pay day lenders

There are many lenders willing to make pay day loans. Each lender has guidelines for work history and how much you earn. This information is used by the lender to determine how much you can borrow. By shopping around you can find a lender who can give you the amount of money you need. Also, some lenders will waive the first interest payment in exchange for full payment of the loan amount on the due date. This is a great way to save money!

Pay you loan in full

The best thing you can do to make sure you get the most from your loan is to pay back the advance in full on the due date. If you make smaller payments you will pay more in interest and carry more debt. This in turn will make it more likely that you will need a pay day advance in the future.

Pay day loans can be a great way to get a quick advance against your paycheck. This is especially true if you have an unexpected emergency or bill that must be paid. If you must take a loan remember to borrow only what you need, shop around for the best interest rate and pay your loan in full on the first due date.


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