Payday Loans - What You Must Know!

Sometimes, when things get a bit 'hard, do things without thinking. Especially because we want to make the difficult thing behind us and move forward. This can lead to jumps of payday loans and regret it later. Payday loans are not so bad until you know what you do and take the time to think about actually doing and how you can see by the end of the loan.

To begin, payday loans are not always a good choice! Do not be fooled by advertisements for the gallery, radio, television or the Internet. Even if you desperately need money until your paycheck, you should consider all the alternatives first. In my opinion, a brief definition for payday loans is the cash.

Payday loans are short term loans in cash. The amount of money that can be borrowed varies regularly $ 100 to $ 1000, and depends on the laws of each state. The average duration is about two weeks. Payday loans are made by check to the collection service, finance companies, department stores, payday loan, and others. They are also known as cash advance loans, check advance loans, loans or deferred deposit check loans post control.

That's usually how it works: The borrower writes a check for the amount borrowed, plus taxes and receives the amount he wants, unless the tax. Costs are a percentage of the normal control, but can also be a fixed value received by a certain amount (like $ 15 for every $ 100 borrowed). When your next payday arrives, the borrower may repay the verification of cash. Otherwise, you can pay the deferred financing costs and drive the loan for another two weeks.

To get an idea of how payday loans are expensive, you should know that this type of loan costs on average 470% in April (annual interest), while the credit card in April is rarely above 60%.

Suppose you want a payday loan for $ 300, the loan rate is $ 17.50 per $ 100, and the loan period is 14 days. Therefore, to redeem the check that you have to pay $ 352.50 at the end of the period of 14 days has been completed. You can pay cash or you can leave the check should be deposited in the back. If you do not have money, you must pay the $ 52.50 fee to renew the loan for another loan period. This means that the loan of $ 300 per month will cost $ 105. Not good at all! In comparison, an advance of $ 300 in cash on a credit card or reimbursed through a month will cost more than $ 15.

Everything you need to get a payday loan is a bank account and a steady source of income. However, creditors are not necessarily interested in whether the borrower can afford to repay the loan. If you do not repay the loan, it becomes a control found in your bank account. If you are unable to pay, you get a bounced check fee from the creditor and the bank. You will receive negative opinions on specialized databases and for this you risk losing your bank account and have trouble opening a new one.

Because of the very high cost to borrow and the repayment arrangements in the short, consumers sometimes tend to be trapped in cycles of debt. Reports indicate that nearly 60% of total loans granted each day is or renewals of loans or financing by the consumer himself immediately after the last payment.

Payday loans with interest rates three to two digits are prohibited in twelve states of the United States, where they are regarded as small loans or usury caps.

Payday loans, the Internet has become very popular lately. You can apply online loans are deposited directly into your bank account. When is payday, the amount of money you have borrowed is withdrawn electronically. If you choose to renew their payday loans is charged electronically withdrawn from your account.

Here's a tip to avoid getting a payday loan. First, shop carefully! If you really need the money, try to get an advance pay from your employer or borrow money from family or friends, at least you can do for free (usually). Figure out the daily and monthly expenses and try to avoid unnecessary purchases. It is also necessary to build economies, so there will be no need to borrow money for unexpected expenses or emergencies. If you decide that you want to use a payday loan, be sure not to borrow more than you can pay with your next salary.www.phonepaydayloans.net