Payday loans are the fastest solution to fix a present problem but it is also a busting expense that individuals and families have to go through. So ideally payday loan should only be used for emergencies and not considered as a regular means of getting cash for no particular need. Take note that if payday loan becomes constant this can affect the credit score of an individual. In addition it has a high interest rate of 15-20% on an average. If you cannot pay the payday loan after 2 weeks, the interest will soar higher for every time you fail to pay the debt.
How to get a payday loan?
- The borrower fills out the required registration form at the Payday lending office.
- Loan amounts differ from $50 to $1,000, based on the law in your particular state. If this is approved PaydayLoansFastnEasy you will be able to get Online Cash Advance Same day.
- Full payment is required and due on the next payday meaning after 2 weeks. A borrower can issue a postdated check to cover for the payment of the original with the interest and charges. They are also allowing the lender to electronically access their pay and withdraw the funds from a customer bank account.
In case the borrower fails to pay after 2 weeks
The borrower can request the lender to roll over the loan. This means that the borrower has to pay the original loan amount including the finance charge on the first loan plus a new finance charge for the new total. For example a $375 original loan will have an interest and finance charge total of $56.25 for a 15% rate. Meaning after 2 weeks the amount becomes $431.25 but if unpaid the next 2 weeks the amount will become $495.94 since the new loan amount becomes $431.25 and the finance of 15% is $64.69 which means the amount payable after a month becomes $495.94 which is almost $500.
Final Take: Payday loan can become the worse nightmare to some because of neglect in paying this on the first term. Rolling over increases the interest further, so it is best to be true to one’s commitment and pay the loan on time.