30 Day Payday Loan
All individuals who are mindful of their financial states are aware that taking out a 30 day payday loan is a dangerous step to make. But sometimes, certain opportunities arise where obtaining such loans seems to be the only immediate solution. Payday loan companies are famous for their shrewd ways of doing business.
That is why financial experts always advice borrowers to be very careful when using the services of a short term loan company. Times are tight and people need to make intelligent financial decisions. Delve deeper into it and imagine the worst thing that can happen so you will not get caught unprepared.
A 30 day payday loan is probably the easiest way to obtain cash. Like any other loans, the borrower should be able to meet the basic requirements before he signs the papers. You must be at least 18 and must have a regular job which can pay you a regular salary every 30 or 45 days.
Some lenders will also ask for proof that you have a saving or a checking account because the money you borrowed will be immediately drafted from your bank account when the term of the loan ends. How much you can borrow depends on the credit limit given by the lender.
Before deciding to take out a 30 day payday loan, you have to be absolutely certain that you understand the terms and agreement of the loan and what it would cost you once you seal the deal. Interest rates and fees are not the same with every lender but they usually play between 10 to 15 percent.
The lender can ask for the interest rate payment up front or wait until the repayment is done. Since payday loan fees are way above the fees of standard loans, they are best used as a short-term financial solution alone. If you have to extend your term beyond the specified date, then charges can go well over a hundred percent.
Under the usual 30 day payday loan agreement, your loan provider has the right to automatically draw up the amount you owed from your savings or checking account on your next payday. Extensions are seldom offered after the specified due date. Some states even forbid extension after a period of 45 days.
The term of the loan usually expires on the 14th or 30th day after the loan was obtained. To avoid extensions, partial payments are encouraged so full repayment is covered before the allowed 45-day limit.
It is wise to remember that a 30 day payday loan doesn’t come cheaply. It is better to weigh your options carefully before jumping into a short-term loan. Only when the circumstances are extreme is it prudent to turn to payday loans. The risks involved are obviously steep. Borrowing cash this way only implies that you do not have any other means of income where you can derive the money from at the moment.
If it’s a business opportunity you would have to spend the owed money on, make sure that the benefits outweigh the risks that you’re getting yourself into. Remember, the interest rate alone eats up a hefty chunk of your repayment so make sure that you can earn this within the allotted time.