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Cheap payday loans
Cheap payday loans can solve your immediate financial problems A salaried person generally does not have any extra source of income therefore, is dependent on borrowing money at the time of emergency. Borrowing money from friends and relatives however are not a suiatble option every time.
This compels him to skip bills or to postpone urgent requirements. But certain situations cannot be avoided and requires immediate attention. Cheap payday loans are best suited for such people. A Cheap payday loans helps them meet their immediate requirements at a very low cost. Not only this, these loans are approved quickly, in most cases within two to three days. Payday loans can be used for variety of purposes like to pay medical bills, college fees or for simple household expenses. A Cheap payday loans is offered at a low rate of interest. The borrower does not feel weighed down by the loan and pays it back conveniently when he gets his next pay cheque. A payday loan as the name suggests is availed for the time till the borrower gets his next salary. To avail a cheap payday loan, all a salaried person needs to do is to sign a post-dated cheque containing the amount he wants as a payday loan and lender's charges and offer it to the lender. The post-dated cheque secures the loan in the absence of any collateral as payday loans are mostly unsecured loans. Cheap payday loans are generally taken for a short period of time, say one or two weeks, till the borrower gets his next pay cheque. The lender deposits the post dated cheque, on the due date, in the borrower's bank account and gets back the loaned amount. Lenders generally offer 100 to 2000 as cheap payday loans. The amount one can borrow, as a payday loan, depends on his monthly income. The borrower is asked to prove his financial position to the lender by submitting related documents. In general proof of employment and a salary certificate is enough to convince the lender about the safe return of the loaned amount. The loan may come at higher interest rate. This is because of the unsecured nature of the
loan and also due to the fact that the loan is offered for a very short term of 7 to 14 days which can be extended. Cheap payday loans are usually taken by a borrower for a period of two to three weeks. Till the loaned amount is fully repaid, the borrower pays only the interest accumulated on the loan to the lender and no installments are involved. As a result, a cheap payday loan does not develop into any sort of burden for a borrower. A borrower, however, should ensure that enough money remains in his bank account so that when the lender deposits the post-dated cheque, it does not get bounced, otherwise the borrower may have to pay high penalty and face legal action. Also paying off the loan on time is important in order to avoid paying money on interests. How to get a cheap payday loan Although a Cheap payday loans, because of being unsecured, comes with a higher rate of interest, but with some hard work and shopping around, one can borrow a reasonably large amount at competitive rate of interest rate through cheap payday loans. To get a payday loan at low cost, apply for a loan that is smaller in amount than your monthly salary so, that the lender gets highly convinced about your repayment capacity. Search comprehensively for the suitable lender, either manually or with the help of Internet. Contact these lenders and collect information on their payday loan packages. The information must include eligibility criteria, terms and conditions, interest rates and documents required to avail the loan. Getting touch with the lenders online will not only save your time but will also help you to compare loan products easily. Select the one which comes with the lowest possible rate of interest. Moreover, lenders also charge fees apart from interest rate on payday loans. Each lender charges a different amount as fee therefore; you need to negotiate for a lower fee before choosing the payday loan package. A cheap payday loan thus is an efficient way to meet urgent financial needs at low cost. Why one should handle a cheap payday loan carefully Now that we have looked at the merits of a payday loan, lets have a fair look at its possible disadvantages. A payday loan if handled carelessly can cause serious financial trouble to a borrower especially if he has a low monthly income. Due to easy availability of payday loans more often people get tempted to borrow more than they need. People take payday loans with the belief that they will repay it with their next pay cheque. Well, so far so good, but what if their next salary, after their house-hold expenses, doesnt get enough to pay back the payday loan They will extend or renew the loan period. This practice is called rollover and, if it is done again and again, the borrower gets into a vicious cycle which ends up eating a lot of their hard-earned money. For example: Say a person borrows $200 for 10 days until your next salary. He writes a cheque to the lender for $225 including $25 as interest and other fees. If he is unable to pay back the $225 on the payable date, he can opt to rollover the loan for another couple of weeks. Similarly, if he rollovers the payday loan three or four times, the fees charged would reach $100 for a $200 loan which is a very high price. A payday loan has its advantages as well as disadvantages. It provides you money at the time you need it but, at the same time it can make you pay a heavy price, if you are not disciplined enough with your finances. Carefully review your needs and earnings before availing a payday loan and borrow an amount which you can afford to repay. This way you will not only maintain your financial position but will also remain stress-free. Other Articles |
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