Finance Tips and Career Guidance Magazine

Wednesday, May 22, 2013

Considering a Payday Loan Advance

Short tips on payday loans

A Payday loan advance is something that should not be considered as an efficient financial plan. However, sometimes these economic hard times can catch us all in a temporary disadvantageous circumstances; no matter how well we try and plan. It is times like these when payday loans can help. 


Before You Borrow

Before you apply for a payday loan advance, you should be sure that you need to borrow, if so only borrow as little as necessary and that you are able to pay back in the allotted time.

If a payday loan advance is essential, get one from an accredited lender, perhaps one that is licensed by either the Consumer Credit Trade Association (CCTA) or Consumer Finance Association (CFA). When you do decide to take such a loan, plan to learn from this unfortunate experience, possibly try stricter budget restrictions in the future. You should also correctly budget for the payday loan advance repayment amounts and try to avoid a possible snowball effect of having to request additional loans in order to pay off the first one.

Once you borrow 

So after due consideration you decided to take a payday loan advance, but your situation takes, a turn for the worse or an unavoidable extra charge turned up and you are unable to make a repayment on time.
In a time like this, do everything possible to try and make the payment in order to avoid late fees or other expenses but if it isn’t at all possible, contact your lender immediately. By doing so, you may remove any extension fees or at least reduce them and just as importantly you could avoid an unnecessary down grading of your credit score, which would eventually have a long term affect to get other loans or even a mortgage.

Important points to remember

Remember, don’t play hide and seek with payday loans. It can actually eat up all your savings, and leave you drained. I have known people who have shelled out more interest than the actual payday loan amount. 

Secondly, avoid shopping expensive items, no matter how difficult it may be for you to resist temptation. Unless you want something such as your basic needs, or other necessary shopping items including grocery, don’t even think to go to the market. 

Finally, compulsive spenders should avoid applying for payday loans. It can ruin their life. 

Author: Jigme Jamtsho
   

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