A payday advance is a relatively hassle-free way to get some quick cash. If you happen to be in a tough financial position at the moment and have considered taking out a payday loan, then the information below will be valuable to you. Read the advice here before you make any decisions on payday loans.
Understand the fees of a payday loan before you take the money. You might have to pay up to 40 percent of what you borrowed. This figures out to about a 400% interest rate per annum. The fees increase if you do not pay the lender back the next time you are paid.
Limit your payday loan borrowing to twenty-five percent of your total paycheck. Many people get loans for more money than they could ever dream of paying back in this short-term fashion. By receiving only a quarter of the paycheck in loan, you are more likely to have enough funds to pay off this loan when your paycheck finally comes.
Payday cash advances can be helpful in an emergency, but understand that you could be charged finance charges that can equate to almost 50 percent interest. This huge interest rate can make paying back these loans impossible. The money will be deducted right from your paycheck and can force you right back into the payday loan office for more money.
If you are considering taking out a payday loan to repay a different line of credit, stop and think about it. It may end up costing you substantially more to use this method over just paying late-payment fees on the line of credit. You will be stuck with finance charges, application fees and other fees that are associated. Think long and hard if it is worth it.
Cash advances allow you to get instant cash when you need it. Before getting a payday loan, you should read this article carefully. All of the advice here will prevent you from making mistakes when it comes to getting a payday loan.