A payday loan seems very helpful for those who are lack financially, but if we truly evaluate, people who need a payday loan is people who never stopped to think about the "cost of money" or who, quite simply, don't budget well enough to have $100-$500 in the bank for an unexpected expense. Considering that a payday loan has significant risk since the APR of a Payday loan is definitely high, please consider the following advice before you decide to apply for a payday loan.
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If you need money to pay a utility bill, ask the utility company for an extension. Look into the late fee they charge. If the charge is still less than the charge of a payday loan, why not?
Ask your creditors to give you a favor by waiting until your next payday. If you can manage them to do so, you need not borrow the loan
Use your credit card for making urgent payments. Usually, a credit card loan’s interest rate is very low; even you have to pay nothing as interest if you repay the loan within a month. If your bank has an overdraft fee, find out what it costs. If it is less costly than the payday loan fee, use it.
Ask your banker or a credit union for a short-term loan. The costs of these loans are such that you can easily afford them.
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Try to find other loans from credit cards, a small loan company, an advance on your pay from your employer, or loans from friends or family.
If you have to use payday loans, borrow only as much as you can pay with your next paycheck and still have enough to make it to the next payday. Otherwise, you will be trapped to get a payday loan to cover another payday loan.
Make a realistic budget every month to keep the balance between your earnings and the expenses. Avoid unnecessary purchases and try to save money as much as possible every month to cover emergency expenses.
If you need a larger, longer-term loan, it is better to seek other, more traditional, lending sources although the process is more complex.
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