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Odds are good that if you create a financial plan
today, reduce your debt and begin saving regularly,
you may be able to live more comfortably, with less
worry and maybe even retire as a millionaire. Set
some realistic goals about how you would like to
live now and in the future. Begin learning about
how to manage your money better, and develop a financial
plan that will help you achieve your goals - even
if you're living paycheck to paycheck.
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What To Check Out When You Apply For A Payday Loan
by Prakash Menon
Are you thinking of going in for a payday loan to meet
an unexpected expense? If yes, look into these seven things
before you finalize one. This checklist can help you make
smarter choices. You might even end up saving some serious
cash!
First thing to consider -- do you really need that cash
advance? Sure, you need cash right away, but have you
looked at other options? The fact is, a payday loan is
an extremely expensive source of funds, with Annual Percentage
Rates (APRs) ranging from 300% to 1000%. So before you
take one, see if you can arrange money by taking an advance
from your employer or from your credit union.
You could also consider borrowing money from friends or
family. Depending on your situation, credit card funding
might be an option too, because it’s usually cheaper
than a payday loan. Be careful with this alternative,
though.
Ask yourself how much you can really repay when the next
payday rolls around. Work out an exact number you can
commit to. Take a cash advance only for the amount you
can repay, including all charges that apply. Obtain funds
from other sources for any additional requirements you
may have.
Here’s why. If you choose to roll over all or part
of the payday loan, you end up paying much more -- additional
charges, late fees, etc. Your APRs start climbing rapidly
and you may even find yourself trapped in a vicious cycle
of payday loan debt. Stay clear of this trap.
Apply only for one payday loan at a time. Your application
gets reported to a consumer tracking database used by
payday lenders and banks. If you apply for multiple loans,
the lenders may see the multiple applications and you
might end up being rejected by all of them.
Go through the lender’s approval criteria very carefully.
Apply only to one where you can qualify. If you apply
to a company that has stringent criteria and get rejected,
that can actually hurt your chances of getting approved
by another company with more relaxed criteria.
If you’re applying online, ask yourself if the lender’s
website seems professional and well-organized. Do they
have clear information and guidelines on the site? A comprehensive
FAQ?
If you need clarifications on anything, call up and
ask. In fact, it’s a good idea to ask a few questions
to each loan provider you’re considering. That
way you get a feel for their responsiveness and get
additional information to base your decision on.
Most important -- do they have an SSL certificate on
the application page? This indicates data is being transmitted
securely. Secure pages have web addresses that begin
with “https:” instead of “http:”
and in addition, you’ll see a lock symbol displayed
in your browser. If a lender is using a non-secure page
to collect information about you, find another lender!
See this page for 10 things to check out before you
finalize a payday loan: http://www.payday-cashadvances.net
Acting on the above points will help you make better
choices about payday loans. The best solution is, of
course, to get your personal finances into excellent
shape so that you never need to borrow in an emergency.
About the Author
Prakash Menon is a financial expert and writer specializing
in managing personal debt and providing wealth building
solutions. He has written on
paycheck advances, personal debt management and other
topics. See http://www.payday-cashadvances.net/paydayloan.html
for alternatives to payday loans.
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