How to cut down the cost of payday loans
Are in need of urgent cash and but you can't qualify to use your credit card or go to a traditional money lender? You need not despair; you can still fix the need for cash by getting payday loans online or from the bureau. This is a loan that is given to you against your paycheck as the security. It usually comes handy even when you have a poor credit rating. You will of course pay it back with the next paycheck. This does not have to be done from your neighborhood; you can simply log into payday loans online facilities and get your cash with a few hours.
Before you rush to fix your cash deficit by clicking online, you need to be aware that the cost for this loan is relatively higher. Compared to traditional sources of loans, this loan is secured against your paycheck and considered a higher risk by the lender. Furthermore, the lender knows that you would have exhausted all the other loan options and therefore at their mercy. It therefore attracts higher fees or interest rates unless your national laws protect you against what is basically usury. You may be required to pay as much as 20% as interest or fees.
Because you may not be in a position to evade this type of loan given the circumstances that make this the only way out at the time of borrowing, the best option left is to find ways of making this loan cheap. Below are tips on how you can cut down on the cost of the cash advance.
1. Borrow only what you really need: the human tendency is to exploit an opportunity and seek comfort beyond what is really necessary. If you had wanted to borrow 200 dollars to pay for emergency medication, you may be tempted to borrow additional 100 dollars and go to the movies for a show you feel you can't miss. While you may justify this action by saying that you will after all pay back, you need to remember that the more you borrow the more interest you pay. Assuming a 20% fee or interest rate, you will be required to pay back 20 dollars for every 100 dollars you borrow. Therefore borrow only what you really need and pay the least in terms of fees or interest.
2. Never postpone payday loans repayment: whether you borrow from payday loan online services or from a lender in your neighborhood, you need to make effort to pay on the day when next paycheck goes through. This date should not be different from the day pledged for making repayment of the payday loan. Any additional day of delayed repayment of the loan attracts a surcharge or extra interest at two or three times the initial rate. This penalty quickly grows into a huge cost before you can even know it. Therefore avoid delaying this payment at all costs.
3. Last but not least, you need to be sure of the agreement you have signed up to: The little details between the lines are often neglected yet this is where actual cost of the loan is indicated. This varies from one lender to another and therefore should not be assumed to be the same. Please read!