payday loan

PayDay Loans: Fix Your Cashflow Problems, People

Posted by

If you get a payday loan, it is crucial that you have a plan in place from the very beginning so that you can pay it off. Without the plan, you may not make those payments on time, and then you have to deal with the seriously higher or penalty interest rates. Avoiding those rates should be your goal all of the time because it makes the loans far cheaper.

You will have to pay some initial interest on the loan that you just cannot avoid, but paying over an extended time increases the amount that you pay, making the loan cost more with every passing month. In fact, some payday loans have to be paid back almost immediately, so the rates would be much higher if you do not do so. These tips will help you out.

Keep track of your spending after you get the loan

You want to spend as little as possible, increasing the odds that you have enough money to pay the loan off when it comes due. Keep track of everything, even if it seems tedious. Do not buy things that you do not need. Cutting back can make it easy for you to pay off the loan on time, whether you got it from USACashServices.com or another lender, and you are going to love that.

Mark the date that it is due on your calendar

This could mean a physical calendar in your home or it could mean a calendar on your phone. Either way, you need to make a note of this date so that you do not accidentally miss it. You would not be the first person to pay extra in interest just because they did not know that it was time for them to pay off the payday loan. You have to keep track of what is due and when it is due so that everything falls into place.

Use online banking if it is offered to you

Most modern payday loan companies will allow you use to use online banking when you pay them, meaning that you can transfer the money straight from your account to theirs. You definitely want to use this if they offer it to you. It means that you can make the payments in seconds. It also means that you can still pay on time even if you forget until you just have a few hours – or even a few minutes – left.

Fix your cashflow issues

Ultimately, you have to look at the reasons you are running out of cash. Payday loans are an expensive form of credit, designed to stopgap cashflow problems. If you are running into cashflow issues frequently, then there is no other solution but to solve the problem. Extending credit on your outstanding payday loans is seriously detrimental to your cashflow and your personal balance sheet.

PayDay Loans: Should you use or avoid them?

Posted by

1

Payday loans, when used sparingly and in true emergencies, can be financial lifesavers. A payday loan is funds borrowed from a lender with a promise of repayment, usually from the borrower’s next paycheck. Hence, the name payday loan.

With a payday loan, there are no credit checks, no up-front costs, no sharing your financial information with others and you get the funds within 24 hours. Those are distinct advantages in a crisis. If your car won’t run or it’s the middle of winter and your furnace breaks down for the last time, payday loans can fill an urgent need especially for those whose credit would preclude short-term bank loans.

Finding a payday loan isn’t hard; it seems they’re on nearly every major street corner these days and they’re worldwide. They have longer hours than banks and credit unions and they also cash checks for a small fee.

However, what if payday comes and you’re unable to pay back the loan in full? Payday loans will roll over to the next paycheck and the next and the next—each time adding interest which averages $15 per hundred. Therefore, if you’ve borrowed three hundred dollars for the cheapest water heater you could find but can’t pay the loan back for two months, that water heater has cost you the original price plus 4 cycles of interest. You’ve paid $180 in interest, over half of the amount of the loan!

There are definitely advantages to payday loans if you can meet the original terms of service and get the loan on a truly “payday” basis. However, if you have any doubt that you can pay back the payday lender, you should consider other sources for loans. Better yet, try to plan and provide for financial disasters before they occur.

You can use the little calculator below to calculate your interest rate over a longer period.

It is updated automatically.