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Take Out a Pay Day Loan to Solve Your Financial Emergency

Todays Date: December 10, 2018

A pay day loan might be a bad habit that you have begun to rely on and use to give you temporary relief for your lack of cash. You need a little bit of extra cash and you figure you can get your cash easily by paying a small fee. You need a fast hundred bucks and you are willing to pay the extra $20 back just to put that cash in your hand now.

You may have done business with a pawn shop before and if so, you know the collateral (the item being pawned) is what they hold. Your item, when purchased, may have been worth $100, but you will be loaned $20. Your payback to get your item out of pawn, will be the $20 plus about 2% interest plus 20% loan fees for 30 days. For $24.40, you get your item back. Only 60% of pawned items are reclaimed. You may find the payday loan is a better option for you.

You could have a real emergency and a great reason to take out a pay day loan. You are not alone in needing extra cash once in a while. The CFSA (Community Financial Services Association) makes sure you don’t get taken advantage of in your emergency. They watch the state caps on interest rates. It’s important that you find out what you will be charged ahead of time and that you understand the terms of your loan before you sign the agreement.

If you are making a habit of paying back payday loans, that it good. But if you are in the habit of taking several pay day loans out at a time, that is not good. This signals a bad habit. For situations like this, you can get help from various online resources and learn why you have these financial habits. Asking for help to learn about budgeting is not nearly as painful as constantly being in debt.

When you make a payday loan, you may have the option of rolling over the loan. This can become a financial burden if you do it too often. Try to pay back your pay day loans on the date you agreed to instead of extending the due date. If you decide to borrow, commit to paying it back on time. You can also find out if your lender offers you the option to “pay down” your loan with the extension, so your balance will be getting paid off a little at a time.

Most pay day loan lenders are really not trying to take advantage of people. They are providing a service to those who have encountered an urgent financial situation. Credit card rates are comparable if you continue to carry a big balance over for a long period of time. It’s important to always remember that pay day loans are a short term solution and should not be used to try and solve long term problems.

However, you do have alternatives. You can handle medical emergencies by talking with the financial department at the hospital or doctor’s office. Sometimes, they are able to set up payments for you that are manageable. Mechanics might not be as generous because they need to carry on their business with the money you owe them. Some smaller shops might be able to help you in a pinch. When you have exhausted all your alternatives, consider getting a pay day loan but be a responsible borrower.

If the payday loan is your choice, you should be sure that you carefully read through your loan agreement and that you totally understand everything before you sign. Make sure that you ask questions if you don’t understand something. Make a commitment to pay the loan back on time and to begin new financial habits that will help you with the next urgent financial matter that comes along.

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