Payday loans need to be handled with care if borrowers want to use them to their advantage. One thing that borrowers must always remember is the cost of online payday loan. Payday cash advances have a slightly higher APR than other advances.
Useful In Dealing With Emergencies
Payday loans should usually be used in emergency situations where there is an immediate requirement for cash. Like for example, when one needs to pay doctor´s bill or when for repairing the car. Only when it is absolutely necessary should one go for a fastest payday loan. Furthermore, one should only borrow what is needed. If you borrow extra, remember that you would be paying interest on that money.
Fee
Let us say that you have taken a fastest online payday loan and you are paying $10 per $100 borrowed. Supposedly you have taken a cash advance of $400; therefore, by the end of two weeks you would be repaying $440. Now this $40 is not much considering that you were able to have your car repaired and report to work, or you were able to pay your doctor´s bill and were able to avoid taking many days off work.
Now you should take care to repay the cash advance on time. This way you will solve your immediate problem and not end up paying too much for the cash advance. Problems arise only when borrowers fail to repay their payday loans on time. Rolling over the cash advance once or twice will not really raise the cost of payday advance.
So when you take a payday loan to take care of your emergency, you must maintain a strict vigilance on your finances. Avoid overspending or unnecessary spending. When you get your paycheck just pay back the loan amount. Sure for a little while you will feel a slight cash crunch but after your next paycheck things will be back to normal.
Most lenders offer payday loans for a period of two weeks, but borrowers can come across lenders who offer cash advance for a longer duration. Therefore, if you feel that your cash crunch situation will take more than two weeks to get back to normal, you should speak to the lender about offering the cash advance according to your need.
If the borrower understands how best to deal with payday loans, then he/she ends up getting the best out of them. Carelessness on your part could lead to delays in repaying the cash advance and you do not want that to happen.
source:http://www.losangeleschronicle.com/articles/55909
