Learning About Finance and Money
Taking A Closer Look At The Biggest Fast Cash Loan Mistakes
Jordy De Pijper
Your car breaks down; you run out of groceries you have an unexpected medical expense--all of these scenarios are just part of everyday life for a lot of people. If you are like a lot of people, unexpected financial emergencies will lead you to the nearest payday lender, like EZ Check Advance, to get a fast cash loan. It is incredibly convenient to have a place where you can turn to get the money you need to get you through until payday in just a matter of minutes, but there are also some major mistakes you should try to avoid with these quick-turnaround loans.
Mistake: Accepting a loan that is greater than what you actually need for your expenses.
Why? When you take out a fast cash loan, this money should be used exclusively to help you handle your emergency situation. The amount of money you will be offered by the lender will be calculated according to your usual paycheck amount. Therefore, you will likely be offered more than what you actually need. It can be enticing to be offered several hundred dollars in an instant, but this money must be paid back in a short time frame. Try to think logically about what you need and how much you can afford to pay back in full on your next payday.
Mistake: Not taking into account the interest and financing fees.
Why? Before you accept a loan, make sure you get a clear outline and understanding of how much you will be expected to pay back on payday. In addition to the amount you borrow, you will be expected to pay any interest and financing fees at the same time. Coming up short when you do get paid will means that you may have to re-advance the loan, which means another round of financing charges that you will have to pay.
Mistake: Accepting a loan without first checking on other loan products that may be available to you.
Why? Payday lenders offer way more than just fast cash loans that have to be paid back on payday. Most places actually have installment loans available to their customers that function on similar terms as payday loans, meaning credit issues are not a problem as long as you can prove that you do have employment. Installment loans with a payday lender usually have a longer term and much smaller payments, which is much more feasible if you cannot afford to pay back the full loan right away. Talk with a payday company to see what other options you have.
Share
Hello, my name is Remy. When I was a young kid, I tucked all of my funds into a savings account set up by parents. When they found out I was saving every last dime, they helped me split the funds into a sustainable allowance for saving, spending and giving. I would like to teach you to use this method on your monthly funds. A healthy budget allows you to cover all of your obligations plus giving back to your community. I welcome you to visit my site often to learn all you can about finance and money. Thanks for coming by.