It is hard to find anyone who has not heard of payday cash advance loans, or even turned to them at some point in a financial crisis. These cash advances are acknowledged as an effective means to get a quick loan that is hassle free and puts cash in your hands when you need it most. But on the downside, there's the question of unreal interest rates that can range from 400 - 800 % depending on the lender you approach. And this is precisely what pushes the borrower into the quicksand debt.
Not repaying your payday cash advance loan on the due date is probably the best way to ensure that you never, ever get out of debt. What happens is this; if you do not repay it on the due date, the lender gives you the option of what is called 'rolling over' your payment. This extends your liability, makes you pay even higher interest charges and penalties - all of which you can avoid simply by repaying the loan on the due date! The choice is yours - to be or not to be - eternally in debt.
Make use of cash payday loans only as a last resort. They are not the permanent solution to your financial problems. Only go in for small manageable amounts that you can clear on the due date. Do not be tempted by 'roll over' payments.
Know before you go:
It is natural to be relieved when you get quick cash loans in your hour of need. But make sure you pay attention to the details of your contract, particularly the fee part. The fine print is where you will find miscellaneous fees, application fees, terms of interest and other details. Know everything before you agree to the terms, both about the lender and the contract.
Review your own situation
Take stock of your income vis-à-vis expenses before you take that cash advance. Are there ways in which you can enhance your income or cut on expenses? Why not work out a savings plan by making a budget? This introspection, followed by action will not only help you devise a way to pay back your loan on time, but also keep you on track for the future. Only use cash when you make your purchases so that you do not get carried away.
Do the research and shop around
Look at cash payday loans offered by a few lenders and compare their terms. Once you find a lender with the lowest annual percentage rate or APR - so that if you have no other option but to extend your loan, at least our interest rate will be lower when you repay it. Do not even look in the direction of these short term loans that expect an advance fee before you have the money wired to your account.
Make sure there is enough money in your savings account. If your bank offers overdraft protection, it can avoid extra interest if you do not have enough funds.
Is your Lender credible?
When you take a payroll advance, you want to make sure that your lender is trustworthy and not a scam. Check with the Better Business Bureau and other credible affiliations. You want a lender who will maintain confidentiality with your personal information.