Mention payday loans in casual conversation amongst friends, family or workmates, and won't be long until someone brings up the cost of them. It's a fact. That is that they have garnered a reputation for being among the most expensive options for a fast cash advance. The fact is though that if you look a little deeper, what you'll find is that there are ways to cut your costs, and if handled properly they can in fact be one of the most "affordable options" that you have.
For example if you're only considering the upfront fees that they carry, they really are not that bad a deal when compared with the cost of, say having a vehicle repossessed or perhaps a late fee on a credit card payment. For far too many people though, the costs are driven up further down the road when they fail to make the payment on time, and are hit with "late payment fees". Try to understand that because these loans require no collateral, like upon shop, so they do have late payment penalties.
Then another thing most people are completely unaware of is that there are in fact "free" payday loans available online. Now of course you have to pay the money back that you borrow, so that's not free. However, there are loads of sites now that are offering one-time only introductory free loans that you can take out. Now keep in mind that these are one-time only offers but things just don't get any cheaper than free.
Then one more way to cut the cost on an online cash advance, is to take that little time that's requires to shop around a bit for the "best deal" available. The problem for most people with no credit or bad credit though, is that they're so used to being turned down because of their challenged credit rating that they'll tend to "snap up" the first loan that they're approved for. However, if you apply to three or four sites, after they approve you, you can then select the one carries the best terms.
Then yet one more bit of advice for today's "frugal borrower", is to "not take the rollover option" at the end of the month when the loan comes due. This is option that more sites are now offering that allows you to extend the loan out for another term if you don't want to pay it off when it's time to. It does come with a charge however, and if you continually do this these fees can add up quickly. So simply pay it off on the agreed upon date.
Then lastly an all too common mistake that too many borrowers make is to take out an online payday style cash advance for someone else on an "agreement" that they will pay it off when it comes due. It's a mistake that can leave you holding the note on a loan that you can't pay off, and then getting stuck with late payment penalty fees. It's usually a friend or romantic partner that has a job but doesn't have require documentation, so just don't do it.
For example if you're only considering the upfront fees that they carry, they really are not that bad a deal when compared with the cost of, say having a vehicle repossessed or perhaps a late fee on a credit card payment. For far too many people though, the costs are driven up further down the road when they fail to make the payment on time, and are hit with "late payment fees". Try to understand that because these loans require no collateral, like upon shop, so they do have late payment penalties.
Then another thing most people are completely unaware of is that there are in fact "free" payday loans available online. Now of course you have to pay the money back that you borrow, so that's not free. However, there are loads of sites now that are offering one-time only introductory free loans that you can take out. Now keep in mind that these are one-time only offers but things just don't get any cheaper than free.
Then one more way to cut the cost on an online cash advance, is to take that little time that's requires to shop around a bit for the "best deal" available. The problem for most people with no credit or bad credit though, is that they're so used to being turned down because of their challenged credit rating that they'll tend to "snap up" the first loan that they're approved for. However, if you apply to three or four sites, after they approve you, you can then select the one carries the best terms.
Then yet one more bit of advice for today's "frugal borrower", is to "not take the rollover option" at the end of the month when the loan comes due. This is option that more sites are now offering that allows you to extend the loan out for another term if you don't want to pay it off when it's time to. It does come with a charge however, and if you continually do this these fees can add up quickly. So simply pay it off on the agreed upon date.
Then lastly an all too common mistake that too many borrowers make is to take out an online payday style cash advance for someone else on an "agreement" that they will pay it off when it comes due. It's a mistake that can leave you holding the note on a loan that you can't pay off, and then getting stuck with late payment penalty fees. It's usually a friend or romantic partner that has a job but doesn't have require documentation, so just don't do it.
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