Payday loan questions answered
If you are considering taking out a payday loan there are a number of questions that you need to ask the lender and some that you need to ask yourself.
About the Lender
How long have they been in business?
When borrowing money you do not want to end up owing "loan sharks” a lot of money. Finding a payday loan lender who is reputable and has been in the industry for some time is a great start. Positive customer testimonials and referrals are a great way to find feedback of what to expect from your payday loan lender.
What are the Interest Rates?
Payday loan interest rates are an important factor in choosing your lender. Payday loans do come with high interest rates to cover the speed and convenience of taking out a payday loan, along with the risk.
How Long Can you Take out a Loan for?
The longer the better maybe you instinct for this answer, however, it is quite the opposite. The quick that you can pay off your loan, the better. The longer you have a loan the more interest you are going to be paying and you may find yourself in more debt than intended. At Cash Relief, we lend for up to 60 days only, so there is no chance of running into long term debt with us.
What Happens if you Cannot Pay the Loan Back in Time?
If you are dealing with a reputable company, this will be dealt with in a professional manner whereby debt collectors are sent. If you have found yourself in a sticky situation when dealing with a "loan shark”, you may find the penalties more severe. Paying your loan back on time is essential. You will avoid late fees and any other associated problems. You should only every borrow what you are able to pay back within the time frame.
Is it Really an Emergency?
We all find ourselves in problematic situations at some stage or another, but sometimes we overreact about the severity of the situation. Let’s say you have an emergency such as your car breaking down, is this really an emergency? For some who rely on their cars to perform their job, yes, for others, no. You could consider the option of taking the bus, or pulling the bike out of the back of the garage and save up some money until you can afford to get the car into the workshop. Other situations such as dental or medical emergencies really do need to be attended to urgently, so consider your situation before making a decision!
Is there another Option?
Payday loans are convenient, however, they are not a long term solution. Do you have a way of borrowing the money from family or friends where the costs incurred will be less?
Can You Meet Repayments?
Borrowing only when you really need to borrow will help you to meet repayments. Only borrow exactly what you need and nothing more and come up with a budget to ensure that you are able to pay the payday loan off in time. Cash Relief has an online loan calculator to determine the exact repayments that will be required from you inclusive of all fees and interest. We do our best to only loan to those who seem able to make repayments, but in reality, you are the only person who knows if you are capable of this or not, so make your decision wisely!