People having an issue in managing their money will probably get hooked up with payday loans. This loan is usually offered by a non-bank company. It’s not safe at all.
What is a payday loan? This kind of borrowing when the lender extends interest based on the borrowers’ credit profile and income. Or, when payday borrowers lend a certain amount of money from a payday lender, the borrowers should repay for their debt on the next payday. If borrowers cannot make it, the interest of their debt will be added up swiftly. Do you know how payday loan work? Here, let say you are in an emergency and you need money. The next move is you decide to go to a payday loan store, and then you fill the application form. There, you share your ID number, bank account number, etc. Usually, you will get the fund right away or the day after. People say that this kind of loan is so dangerous since its rate of interest is about 400 hundred percent per year.
Why is it dangerous? The payday loan companies offering payday loans can make their borrowers depend on them very deeply. The fee for the loan companies is considered high in a very short repayment length. Not to mention the company’s requirement that will make their borrowers end up in a big trouble. Even though this kind of debt is so luring, you need to be very careful. This will steal your life and not help you at all. Obviously, you will have headache from paycheck to paycheck if you don’t do something to make it right.
- Before borrowing fast cash loan
Experts will say that it’s the wisest way to avoid a payday loan whatever happens to you. Even if you need to borrow money, you should go to banks normally offering much smaller interest rates – 20 percent. Yes, it will take time to receive the money but it’s safer a lot. If you need money it’s a lot safer if from the very beginning you have been careful with your money. Selling one of your valuable things is also the best solution.Whatever happens to you it’s also a must for you to save money from your salary or you end up feeling helpless when you need money.
- When you are feeling hopeless after being a reliant:
- Stop as soon as possible and pay the payday loan with every penny you have. This exactly will make the balance lower. The lower the balance the small interest you will pay.
- Make sure you can make the ends meet, if not get help from parents or best friends.
- Be patient of not being able to spend your money on other things, except for basics and paying the loan.
- Take a part-time job and be calm.
No matter how small your borrowing is, you should be very careful. It can lead to a bad habit. The things is you should manage your money well. Especially if you have to live from paycheck to paycheck, don’t ever let your life becomes like a hell with the debt you have. Hopefully, this article about payday loans can make you more careful with your money.