Many payday loan lenders have received bad press over the years, with a lot of it being justified.
When you take out a payday loan, it is a short term commitment whereby you need cash due to the occurrence of an emergency or an unexpected event that has happened in your life. This could mean that you need to make an unexpected expenditure in order to resolve or ease the problem.
While this can be a useful form of financing an unexpected expenditure, it is not without its risks. There have always been lenders in the industry that are malicious and deceiving. They will often lend you money at outrageous interest rates and include all kinds of hidden fees and charges. They fee don the lowest of the low.
Often, the people who take out these loans will be in a much worse situation than when they were initially. This is not to say that all payday loan lenders are sneaky and malicious. For the most part, you will deal with reputable and helpful businesses that stay well within the rules and regulations that have been laid out for them by the local body, such as the folks at MoneyProTips.
If you are planning on taking out a payday loan, you need to conduct comprehensive research on every aspect of it. Here are some common traps and pitfalls that you need to avoid, as well as some advice to help you through the process.
Don’t be afraid to ask the lenders for a helping hand
While many lenders give off the impressions of being very hardnosed and unfriendly, the opposite can be the case for a lot of the more reputable lenders. There is often some leeway in terms of negotiating better terms or better length of repayment.
There is no harm in asking for a reduction in the interest rate or a change in the term length of the loan. This will slightly ease your financial situation and allow you to plan and cope a bit better with the whole process. You can even go straight to the people you needs the money for in the first place and arrange alternative arrangements. In some instances, the late fee for not paying the bill is less than the amount of interest you would have to pay on a payday loan.
Always shop around
Just like with anything, such as buying a car, you need to do your research and shop around for a competent and reputable payday loan lender. Some lenders may advertise their rates, while some may not. Don’t be fooled by flashy advertisements, you need to get down into the nit and gritty of the details.
Make sure that you exhaust all of your options before you settle on dealing with a payday loan lender. In some instances, you may be better off simply paying with your credit card and paying that off at the end of the month when you have a bit more cash flow.