Be Careful When Borrowing Money
Payday advance loans easy processing has made it very popular to lower and middle income families because they can obtain a loan for unforeseen expenses and utility bills even if they have a bad credit score. You can get a loan too if you are employed anytime you wish but paying the loan on the due date is not easy, so you need to be careful when borrowing money with high interest rate.
What Are the Requirements to Obtain Payday Advance Loans?
To get a hassle free loan, you must meet the following criteria, such as:
- Employed for over 6 months
- Residents of the United States
- 21 years old and above
- Have a checking or savings account with direct deposit
If you are qualified for a loan, you can borrow $100 to $500 or maybe more, depending on the payday lender and your weekly salary.
How To Get Out of Payday Advance Loans Trap
Paying the loan in one lump sum is the only way to get rid of your loan. Paying only the interest will keep you indebted, while paying only portion of the money you borrowed can increase your debt because of the interest, penalty, and other extra fees imposed by the lender when you do not pay on the due date.
Some people fall into payday loan trap because they just keep on borrowing money to pay off their loans. They never do anything to save money for loan payment. Take note, it is fine to borrow money from other lenders but do not borrow the entire amount you need. It is best if you set aside $30 – $50 of your salary so you do not need to borrow the entire amount you need. For example, if you owe $300, borrow only $250, this way you can reduce your debt while you are still figuring where to get the money you need to pay your loan.
By the way, taking another payday loan should be your last recourse, because of the high interest rate. Exhaust all available options first like borrowing money from friends or family before you decide to obtain a payday loan to pay your first loan.