Everyday hard working men and women encounter emergency situations that put them in a tight financial situation. Sometimes people are forced to make the difficult decision between heat or eat, and worse. For many, there are very few ways to find relief. Over the last few years, cash advance companies have become a popular choice. While a payday loan is often a viable short term solution, there are things that must be understood about the process before taking that route. This article will reveal some basic dos and don'ts that will help you steer clear of the traps some of the unscrupulous companies lay down for you to unwittingly walk into.
Do Budget Accordingly: We should all try to do this. Some are better at this than others. When you take out a payday loan, budgeting becomes even more important. First things first. You'll need to know how much money you actually need. Know how you're going to spend the amount you borrow; and, if you don't need it then don't borrow it. You'll also want to be sure to budget for when payment becomes due on that cash advance. Make sure that making that payment isn't going to put you into more danger than you're already in. Do Read the Small Print: Legally, every company you get a cash advance from has to give you all the facts about your loan. Due dates, interest rates, and any other fees-these all have to be specifically described in the payday loan documentation. The less savory companies will try to hide fees and even sometimes specific loan details that may make paying off the debt more difficult just so they can make more money. So, before you sign anything, make sure you read and understand your disclosure agreement. Do Pay on Time: Make sure you have the money in your account when the time comes to pay back your cash advance, especially if it's an online payday loan option. Local stores are often able to help you find a way to extend your loan due date, but some cash advance companies simply do not offer this. If the money isn't there when it's due, you risk incurring insufficient funds fees from both the cash advance company and your bank. In addition, bringing your payday loan current can sometimes be a hassle and the process with some companies can result in even more fees. Don't Go with Your First Find: There are literally hundreds of cash advance companies out there. You may not always go with the first one you find. Do a little research and try to find some information about the company that you're looking into. Review their fee structure and the terms of their payday loans. Be sure that they will be able to meet your needs. Don't Lie: Cash advance companies will almost always verify the information that you provide them. If you lie on your payday loan application and they find out (which they usually will), you will not be able to get the funds you need and you will likely be flagged in their system which will bar you from future transactions. Submitting false information may also stop you from getting a payday loan from any cash advance companies the first one is affiliated with. Don't Take Out Too Much: You may need $200 to make it through, but are given the option to borrow up to $500. Don't take the entire $500 cash advance. As tempting as it may be, you should only borrow what you need. The larger cash advance comes with a larger loan fee, so you don't want to overextend yourself by creating a payment that you really can't afford. Remember, you will have to pay back the amount you borrow, plus the fee, on your next pay date.