So you have had to do some work or repairs on your home. How do you pay for these expense, if you can’t get credit, or don’t need a huge bank loan? A payday loan is a good solution, but how to pay it back, the longer it is out the more you have to pay back, and the interest rates are extremely high. The key is to pay back the loan as quickly as possible, we spoke to East Side Lenders who told us several tips to help you do that.
Planning
It is important to realize that with payday loans you need to plan more than you do with a bank loan or credit cards. Payday loans because of the high interest rate and short payback period work a little different than most people are familiar with. The interest alone can quickly become more than the actual loan was in the first place. You have to plan to that you will have to not just pay back the loan but the interest as well, and this will make your next budget short as well. A strict budget and planning ahead for the payments will go a long way to making sure you get back to normal quickly.
Limit Number of Loans
There is no limit to how many payday loans you can take out at once, and with each lender being separate they don’t really check with each other. This is good if you need to take out more than you can get from a single place. However it means more payments, more debt to deal with and more to be careful of, to avoid a debt cycle, you will want to limit the number of loans you have out at one time. Ideally you would only have to deal with one at a time. If you already have more than one out focus on working them down one at a time, the fewer the better, and the easier it will all be to deal with.
Work out payments
Even though the length of a payday loan is usually measured in days, or weeks at the longest doesn’t mean it won’t benefit from small payments. You don’t have to pay back the whole thing all at once. Making small payments will cut down on the total amount you owe and mean you pay less overall than you would if you paid all at once. These loans are considered high risk for the lender, so most will be more than willing to help work out some form of payment plan with you as it reduces the risk of the loan on their end, use this to your advantage so you don’t have to pay as much as you would otherwise, they may even lower the interest with a payment plan.
Shop around
Payday loans are a booming business, there are tons around town and online, meaning that is also very competitive market. This is good for you, shop around look at a several places before you choose one. You can look around for the best terms this way, the lowest rates, and end up paying less back and quicker for your trouble. An hour or two looking around for the best fit for you could mean days or weeks off the length of loan and mean that much less interest you have to pay back as well.
Do not get greedy
This means don’t take more than you need, because of the high interest rates and compressed periods of these loans don’t get the max amount, do not get the optional extras; take a loan out for only as much as you need. It is tempting to get more and with a bank loan or credit card line that wouldn’t be too bad, but this just adds cost and interest to a payday loan. To pay them back as quickly as possible you want to make them as small as you can, and owe as little as possible. By keeping your sights low you will ultimately save money and shave the time you are in debt as well.
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