When there are so many firms vying for your attention and willing to provide short term loans at a short notice, it’s advisable that you consider necessary steps before you jump on to any conclusion. These forms of short term loans look easy, and you tend to believe that there won’t be any negative repercussions if you choose one. You never know, you might just overlook a key state law in regard to these types of loans, and suffer the consequences.
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Also, the fact that these loans can be availed so fast, that, in the thick of things, you may miss the trick to look into some very good personal mid- term loans. If you look at those who take these short term loans, you will find that almost all of them are forced to take loans because they never plan their budget. They don’t have the tendency to save money. These people live for the moment, and spend to their heart’s delight when they pockets are full. Finally, when an emergency arrives, they have no choice but to look for short term loans.
It is always a wise decision to avoid short term loans if you can because you don’t realize that the money you pay as interest on loans is quite high. And when you sit down and calculate how much you gave as interest to the bank, you will find that you had been wasting your hard earned profit.
Know the state rules
However, if you have made up your mind to receive short term loans, figure out ways to obtain the best loan on offer. There are hundreds of websites that offer exciting offers, and all they say is just fill the application, and the money flies into your bank account. No one talks about the key state guidelines. If this is your first time, then it becomes all the more important for you to know the state rules.
The rules are sometimes tight, and there are chances that you may end up paying more if your check bounces on the due date. Each state has its own credit period. For instance, if you reside in the state of Alabama, then you are entitled for a minimum short term loan period of 10 days, which means you will have to take a loan for at least 10 days while the same could not be true for the state of Arkansas, where the minimum loan period is 6 days.
Similarly, in Arizona, you can avail loans starting at $50, and it goes up to $500 maximum, but in the state of Montana, for example, you can take maximum loan of $300, though the least amount remains the same.
Even there are sharp differences in the fee structure of each state. Some of the states have laws where there are fixed charges in terms of percentage of the loan amount as fees. While, in states such as Colorado, there are two tier charges. 20% charges for the first $300, and then 7.5% increase in charges for loans in excess of $300.
Make sure to go through the details and then decide to opt for loans.
Author: Pat Hoddle