Instant Loans Online – 5 Tips Before Taking Payday Loan!
Payday loans are often vilified by those who don’t know how they work or have had bad experiences with them. However, they remain one of the most common types of online loans available to the public. Here are 5 tips for first time borrowers to avoid a bad experience.
Shop around for a payday lender. Compare interest rates and fees. You can do this online as well as in person. Don’t just walk into the nearest payday lender and assume it is the best deal because it is the closest location. Direct lender in another state may be able to offer you a lower interest rate or fees than a payday lender in your neighborhood. Lenders allow you to take out a payday loan in the eighteen states in the U.S. that have essentially outlawed the practice. The other benefit of online payday lenders is that those not bound by your state’s laws may be able to offer much larger cash advances against your paycheck, up to more than a thousand dollars, while other states cap payday loans at a few hundred dollars.
Use a Reputable Company – InstaLoans.Org
Many payday lender horror stories involve disreputable companies that harass and threaten clients with jail time for late payments, though you cannot face criminal penalties for failure to pay a loan. There are payday companies that charge excessive fees, the maximum interest rate and even clear out someone’s bank account to pay off the entire balance though the customer was only expecting a renewal fee withdrawal. InstaLoans.Org works with reputable payday lenders and the process of getting instant online loans is fast and easy!
Plan for the Payment
Ensure that you work enough hours at work to pay the payday loan. If your employer schedules you for thirty hours and you expected to be working forty hours, tell the employer why you need the extra hours – or start looking for extra jobs elsewhere to make sure you can pay off the loan and pay your other bills.
Plan for your payday loan to be due the day after you are paid by your employer; do this so that you don’t have your payday loan payment bounce because your paycheck hasn’t cleared yet. Many payday lenders require access to your bank account to ensure their repayment, and they may try to withdraw the money repeatedly – which generates a bank overdraft fee each time. If you give the payday lender a postdated check, you face the same fees when they try to cash the check you wrote because of the expectation that the money will be there. If you have a savings account, the simplest solution would be linking the checking and savings accounts to help prevent overdraft fees or at least pay the overdraft fees without extra penalties or closure of your account if there isn’t enough money to cover the loan payment.
If you have to pay the payment on the day you are paid, arrange for direct deposit of your paycheck or receive of a paper check that you can cash yourself. If you are going to use a cashed check to pay the payday loan, don’t cash it at the payday lender’s office – their check cashing fees are going to add to the total bill. Another option is contacting Human Resources and asking if you can have an advance through the company against your next pay check; not all companies give you this option, but it comes with lower fees than online payday loans.
You also have to predict the account balance so that you don’t have other checks bounce when the payday loan is paid. You can’t risk having all your bills bounce and accumulating multiple bounced check fees or even risk jail time for bounced checks. Communicate with your partner so that they don’t spend the money in the account that needs to go towards bills, including your instant online loan.
If you are trying to get out of debt, pay the payday lender first. They typically have the highest interest rate and greatest access to your bank account. It takes months for a credit card company, in contrast, to pursue legal action to garnish your wages and they are more likely to settle the debt for less. Don’t try to run away from the instant loans, since they have all the information to get an order to garnish your paycheck quickly for the unpaid debt.
Consider Options Before Renewing a Payday Loan
Instead of renewing the payday loan for another pay check cycle, which increases the fees and interest rate you’ll pay, research getting an installment loan online with another lender to pay off the payday loan. Installment loans with the current payday lender is the second choice in this case, with the added benefit of being able to extend the loan term to lower the payment due each month for several months.
Consider selling items to raise the cash to pay down or pay off the payday loan instead of paying the fees and interest yet again on another online loan. Working extra shifts or taking odd jobs to pay off the loan are also options.
If you need to renew the loan, make it clear if you want the renewal fee taken out of your account or the renewal fee plus payment against your debt. If you don’t make a payment against what you owe, the overall balance will only grow.
Read the Loan Documents
They may require you to notify them in writing a certain number of days before the draft payment if you want to delay the payment. A phone call in these cases asking them to delay the bank draft won’t work – and the contract told you this upfront. They want a written letter, fax or email that proves you want the continuous payment authority revoked. This protects both sides in the case, since it generates proof you did indeed ask for the withdrawals to be ended.
The payday lender may specify in the loan document that they can contact family members and employers when trying to reach you for repayment. This information is often required as part of the payday loan application. If you don’t want to be called at work, don’t put down the company phone number but instead list an alternative cell phone number. Don’t list someone as a contact or reference if you don’t want the risk of the lender calling them when you are past due.
Another thing people miss by not reading the loan documents is whether or not they are giving the payday lender “continuous payment authority” or CPA. If the postdated check combined with the contract gives the lender continuous payment authority, they can continue to deduct the amount owed from your account until repaid. You cannot end these withdrawals without paying off the loan, agreeing to a new contract with different terms or closing the bank account altogether. Note, however, that if you close the bank account the payday lender is taking money from and you aren’t contacting them regarding how you’ll make the next payment, they can sue you and garnish your wages for the outstanding debt plus court costs and lawyer fees.
Do your research before you take out instant loan online regarding the reputation of the lender and their interest rates and fees. Read the contract before you sign it, and go somewhere else if it is a bad agreement. Plan in advance how you’ll pay off the loan, ideally in full, and take care that you don’t get hit with bounced check fees or excessive penalties. Consider options other than renewing the payday loan before you just renew it, and if you do renew the payday loan, make sure you make progress paying down the debt to minimize the overall cost of the loan.