The Federal Reserve Board recently released the findings of their yearly study into consumer finances and there were a few shocking points. Most importantly, the Federal Reserve Board learned that almost half of U.S consumers admit they could not come up with $400 if an emergency occurred. Bankrate also performed a similar study in 2014 and found that more than 50 percent of Americans do not have at least a month’s income tucked away in their savings. Almost 3 out of 4 respondents state they worry about having enough money to cover their monthly expenses, and of those 19% admit the only way they could cover emergency bills was to take out an online payday loan.
That’s exactly what payday loans are for. They’re meant to cover gaps when you have no other option. No one wants to take out a payday loan, but there are times that you have no choice. Here are three tips to help you with online payday loans.
Shop Around for the Best Rates and Repayment Terms
Services like EasyAZLoans make it easy to compare rates and repayment terms. Don’t choose the first offer you receive. Compare payday loan products and find one that best matches your needs. Maybe 14 days to repay the loan isn’t enough time, so pay a little more in fees to be given an entire month. You may be able to sell that car you don’t really need, that ring you haven’t worn in years, or all the scrap metal lying around your yard that could help pay off your payday loan and your unexpected bill.
Read All Paperwork Carefully
Many people rush into payday loans without reading the forms they’re signing. Make sure you carefully read over everything. If you don’t understand something, ask. If you don’t get an answer you understand, find a different company. Never sign the paperwork until you are certain you know how much you must repay, when you must repay it, and what penalties may accrue if you’re late.
Avoid Rolling Over the Payday Loan
Do everything you can to repay the loan on the due date. Rolling over your online payday loan into a new loan will greatly increase fees. It’s the reason some get trapped into a never-ending cycle of payday loans. You may have to be creative and take a second job for a month or two to repay your first payday loan. You may have items in your home that you rarely use that you can sell off to quickly raise cash. You may even find your church has a program to help you secure a bank loan.
Payday loans can be very helpful when you lack money and have an urgent bill that just cannot wait. Just make sure that you understand how payday loans work and that you can look at other options first. If you have no other choice, shop around for the best online payday loan for your needs.