5 Do’s and 3 Don’ts of Payday Loans
There is no need for you to feel exploited when you go to a payday loan company, then apply for a loan and get the money in minutes but pay exorbitant fees during repayment time. In order to be avoid some surprises and make you poorer by several hundreds, you have to know these dos and don’ts when it comes to payday loans.
The Do’s
These are all simple suggestions and ideas but unfortunately, due to the eagerness of some borrowers to solve their short term financial problems, they tend to forget these facts.
- Find out if you really need this kind of loan. Because it is so convenient and one gets the money instantly, borrowers tend to ignore the risks involved.
- Shop around first so you will find loan companies which offer better repayment schedules as well as other terms and conditions and of course lower interest payments. Do not assume that 1% is a small percentage to look into because the amount you gave up are accumulated you may end up sighing and telling yourself “uh oh, $10.00 can buy me a new pair of socks for my kids.”
- Pay on time. It is already expensive the moment you receive the loan proceeds and it will be more costly the moment you will not pay on time. Furthermore, you add another minus points to your credit score when you fail to pay on time.
- Borrow only what you need. If it is to pay unexpected bills, do not include buying a new pair of shoes as a reason why you apply for a loan.
- Consider renegotiating with your creditors for payment extension and you might be surprised that these companies will not add interests and penalties when you do so. Communicating your financial situation is very important and they will understand your situation when you tell them your predicament instead of avoiding them.
The Don’ts
Logically, doing the opposite of the do’s are what you will find here. However, there are matters more important than the opposites. These are as follows:
- Do not assume that you will not be rejected. You are in a surprise when you think that payday loan is for everyone. There are minimum requirements that you have to comply but don’t worry you do not need to submit lots of documents when applying for instant loans like this.
- Do not make the mistake of forgetting to investigate on the loan company that you are applying for. There are companies whose motive is to scam people not only with their money but also steal their online profile. Please be very careful.
- Do not make payday loan as part of your life cycle. If you were able to repay the loan, then don’t apply for another one if there is no need or you can borrow from other friends or relatives or find interest free loans.
Please do take note of all the above ideas to ensure excellent financial health always or managing payday loans and other instant loans successfully.