What to think about before getting a payday loan?
There can be serious consequences if you don't pay off your loan on time, than payday loans California including the following (depending on the laws of your province or territory.
What happens if you can't pay off a payday loan on time?
The payday lender charges you a fee if there is not enough money in your account
Your financial institution may also charge you if there is not enough money in your account
The total amount you owe, including fees, continues to accumulate
The payday lender can contact your friends, family or employer to get the money
The payday lender may do business with a collection agency, and this may be noted in your credit report.
The payday lender or collection agency can sue you
The payday lender or collection agency can seize your property
The payday lender can go to court to take money from your paycheck (this is also called a garnishment of your paycheck)
If you cannot make your payments on your loan on time, you can easily find yourself trapped in debt.
Will you be able to repay the loan on time while paying for your usual expenses? If not, consider the following options which are less expensive than a payday loan.
Checks and hold periods:
When you deposit a check in person at your bank, you immediately have access to the first $ 100 of the money you deposited. You have access to that $ 100 the next business day if you deposit in some other way, such as at an ATM. If the check is for $ 100 or less, the bank must give you the full amount.
Request more time to pay your bills:
Consider contacting the people or businesses you owe money to. Ask for more time to pay your bills. Tell them when you get paid and offer to write a post-dated check for that date.
Think about cheaper ways to borrow money:
If you need the cash right away, try to find cheaper solutions.
For example:
Do you get paid for your days off?
Request a payday advance from your employer
Get a loan from family or friends
Get a line of credit from your financial institution
Get a cash advance on a credit card
Get a personal loan from your financial institution.
Line of credit:
A line of credit allows you to withdraw money whenever you want, up to a certain credit limit mention on payday loans online California website. You pay interest only on the amount borrowed until it is repaid.
Cash advance on a credit card:
You are immediately charged interest on credit card cash advances, which purchases are not. However, the interest rate that you pay is much lower than that of a loan.
If you don't have a credit card and have had credit problems in the past, you may be able to get a secured credit card from a bank or other financial institution.
When you're caught in a cycle of debt:
If you're already having trouble making the payments on your debts, think carefully about the long-term consequences of payday loans.
Seek advice from trusted sources to explore your different financial options. There are qualified professionals who can help you find the best solution for your financial needs. Their advice is confidential, non-judgmental, and often free.
Some options include:
A financial advisor
An accredited credit counselor
A licensed insolvency trustee or insolvency lawyer
For more details payday loans company .
