With the cost of living growing higher all the time, it’s no wonder that more and more people are turning to payday loans to cover expenses now. A payday loan is one that gives you a certain amount of money for a short period of time – until your next payday, or close to it.
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Payday loans typically have a high interest rate, so it’s best to use them only in a time of emergency or financial crisis. It’s not a good idea to depend on a payday loan for your regular, reoccurring living expenses.
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Make sure that you can repay the interest on time. When you ask for a certain amount, it’s important that you’ll be getting paid more than you’re borrowing.
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When you take out a Utah payday loan, avoid working with additional lenders at the same time. It can be considered illegal to have more than one loan taken out against the same paycheck.
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Read the fine print thoroughly – the last thing you want is to find out about hidden fees that you weren’t prepared for.
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Compare the payday loan fees against other short-term loans. Sometimes a payday loan is the only option, but other times, you can get a better deal with another type of loan.
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When possible, apply directly to payday loan lenders. There are some websites that submit your application to various lenders, but this means that your personal information is out there more than you’d like it to be.
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Take out the smallest loan you possibly can. Since payday loans have a higher interest rate than credit cards and other types of financing, it’ll work in your favor to borrow the bare minimum.
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Make sure that you know exactly when the due date is and that you have money in your bank account for the lender to draft from. If you don’t have the money to cover it, you could be charged a fee by the lender as well as the bank for trying to overdraft.
Payday loans can be extremely helpful when your situation gets critical quickly. However, it’s important to be smart and mature when taking out and paying back a payday loan – otherwise, your debt can pile up ridiculously fast.