Searching for a payday loan lender is not difficult. There are many
money stores throughout populated cities. As a first time user, it is
always good to compare the lenders and see which one offers the best
service at the fairest price. Comparative shopping works well even in
the money industry. One thing is for certain, no matter what lender you
choose, you should always have a needed purpose for a quick cash loan as
well as a plan to get it paid back.Why is it good to have a set purpose when applying for a payday loan? The fat that you will be paying a hefty fee for every hundred dollars borrowed is a good enough reason for most people. These interest charges can prove to be very expensive if the loan is not paid off on time or if the loan was larger than what was truly needed.
Are you a person who gets excited at the fact that a lender offers you much more than what you asked for?
When you go into a payday loan store, your main focus is to get the enough money to solve your emergency problem. You may think that $100-$200 would do the trick. Once your application has been filled out and the loan processor works to approve the loan, the company may just tell you that you are approved for up to $500. Wow! Now what do you do? You walked into the store with a purpose; now you have $300 running around in your head figuring out what could you do with the extra. Slow down your thoughts and come back to reality. Your purpose was to handle a $100-$200 emergency. What is the max loan amount you should take? That is right, stick to your plan and work with the payday loan lender to fund the application amount.
For too many people, the temptation is too great and they walk out with the max loan amount. Now they will face paying back more than double the loan and interest times five. The interest charge is for every hundred dollars. If the lender charges 25%, it will cost a person $625 to pay off this larger loan. That is a big chunk of change to pull out of the bank on payday. If you stuck to your plan and only borrowed $200, your paycheck would only have to see $250 go. Right now, the extra money seems great, but how will it look in a few short weeks? Pay attention to the purpose.
The amount you are approved for is based on your monthly take home income. Think of it as a credit limit without a revolving account. You decide how much you need within the set limits and then walk out of the store with cash in hand. A fast payday loan is something of a blessing, especially for those who are credit challenged and have emergency expenses to take care of. Make sure you stick to the plan when taking your application is approved and continue making headway to get it all paid back on the original due date. Also,
make sure the money is in your account on that day, loan plus fees, so there is no added cost to your budget.
by Holly Petherbridge
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