Most of the time, payday loans are beneficial for people who need to borrow small amount of cash to be used to get through their next payday. As for the cost of such loans, it is quite high with roughly 1000 percent points of interests or even more per year. Nevertheless, these kinds of loans are quite popular.
You’ll find customers taking around 5 to 6 loans yearly and there are many reasons why people are doing so. Similar to what is discussed earlier, these loans are used to survive until their next paycheck but it can be used as well for emergency purposes, for paying late fee charges on credit cards or sometimes, on overdraft charges on bank accounts. They’re quite popular as the money is deposited to the bank account you enrolled almost immediately after applying for one.
There’s no need to wait on your due date before paying the loan. The only thing that you should be sure about is, there is adequate balance in your bank account to pay for the interest and the loan amount. Then what would happen next is, when your due date comes, the lender will automatically withdraw the amount from your account. Most of the time, the cash that you were lent including interest should be paid within 30-day period. Some lenders however allow you to choose a repayment schedule.
Some of the lenders will be offering you a continuous repayment option to which you have given them authorization to make repeated attempts of taking part or full amount due right from your bank account.
However here’s something you must know before talking to direct lenders for payday loans, their offer would be sensible only if you can pay the money on or before the agreed date. Because when you are past the due date, things can be quite costly on your end. Lenders may be offering you to get a rollover of the loan until the following month or more but, this is just a sales plot and an attempt to make customers pay more than what is expected. Keep in mind that a good creditor freezes the interests and charges to not greater than 60 days from last date of payment.
Now, when you are in the process of selecting a payday lender, make sure that you check which among the lenders offer the best rate of interest, do not go for one that is offering deferrals, don’t take several loans at once and never apply for one to repay the other. Be in the right path in handling your finances by taking all these things into account.