Choosing to apply for a pay day loan is a responsible way to manage your finances by avoiding missed or late payments or avoiding using high interest credit cards in emergency situations. These short term loans are not the same as a larger bank loan that you will pay off over years, you will typically pay the loan back in one pay cycle, which means that you don’t have years of interest to consider.
However, a pay day loan should be carefully considered as an option based on your own personal financial situation. Keep in mind that in addition to the actual value of the loan you will also be assessed a fee or a charge for the loan. This fee is based on how much you borrow. The loan amount plus the fee will be combined when you pay off the loan over your next pay cycle. In some states you may have the option to extend the repayment of a pay day loan but there will also be additional fees.
Consider Your Options
A pay day loan is designed to help you get through a time when you are short on cash. They are not designed to be a continual source of money or a revolving type of credit. If you are constantly applying for a pay day loan you may want to consider other options that could help you to pay down bills and help you to balance your budget.
Borrow What You Need
Since fees and charges for a pay day loan are based on the amount that you borrow you don’t want to borrow the maximum that you qualify for every time to get a pay day loan. Instead, to keep costs low on the loan, consider only applying for the amount that you need.
Pay On Time
To avoid any additional fees and charges make sure you carefully read the terms of your loan and have the money in your account to cover the loan repayment as per your agreement. Failing to do so can create more difficulty in repayment as the fees increase with each extension.
A pay day loan is a tool that you can use to get through difficult financial times when you need a limited amount of cash. Always consider your ability to repay the loan and borrow only what you need to ensure that you are able to keep current. Managing a pay day loan is easy if you take a few minutes and plan in advance of applying.
