Payday Loans -how much can I borrow? Payday lenders usually loan between $100 and $1500, depending upon your income and ability to repay the loan. A good gauge of how much a payday lender will allow you to borrow at any one time is to take your weekly income and divide it by 3. For example if I was earning $600 a week my maximum borrowing capacity would be around $200. This means I could borrow between $100 and $200 as the minimum loan amount is generally set at $100
Although a payday loan should strictly be repaid next payday, many people find themselves unable to do so and it carries on for another month. That is when the rollover comes into play. The rollover involves another fee payment. You don't pay interest as such with a payday loan: you pay a 'fee'. For example, with a payday loans of $400 you could pay a $50 fee. That works out at an interest rate of 25% a month, or an APR of 300%. If you miss the payment, then you pay a rollover fee of another $50, so that your APR has suddenly risen to 600%. So a payday loan can be very expensive unless you make sure that you pay it. So, how do you do that?
Simple. Make your payment by direct debit from your bank on payday. Make sure that the direct debit is dated for your payday, or as close as possible to it, and you will always have money in the bank when the payment is due. If you are paid on a certain date each month, make the direct debit for that date. The definition of a payday loan is that it is paid back on your next payday after taking out the loan. If you know your payday after taking the loan then you can arrange a direct debit to be applied on that date, and the payment will be made before you can access your account. That way there will be no temptation to spend the money before you pay it back.
If payday is a Saturday or Sunday, then you will be paid on the Friday, so arrange the direct debit for the Friday. If you have taken the loan out close to payday, you might have made an arrangement to pay next payday: in that case the same arrangements will apply. If you ever make an arrangement to make repayments over a number of months, then it will be difficult to arrange a single direct debit date, and that kind of payment is not variable: it is made on the same date each month. Many people I know come to an arrangement with their bank in such situations.
Payday Loan Costs Usually a payday loan company charges 15 to 30 USD per $100 borrowed or if you are fortunate enough to live in Australia some payday lenders offer charges of as little as $11 per $100 borrowed. If you have evaluated all of your options and decide an emergency payday loan is right for you, be sure to understand all the costs and terms before you apply. Always check to make sure your lender is offering a fixed flat rate fee so you know exactly what the total cost of the loan is before signing.
Payday Loan Consumer Safety and Protection In the USA Payday lenders are generally subject to provincial/territorial consumer protection laws, and are obliged to follow "truth in lending" legislation enacted by each province/territory. While legislation may differ between individual states payday loans, are considered extensions of credit for purposes of federal consumer protection law. Similarly in Australia there are several laws to protect customers from predatory Payday Loans Agencies.
In summary, potential payday loan customers can use cash advance loans to help with debt consolidation. This article provided a short list of tips about how to use a cash advance loan to eliminate debt and to avoid getting into future debt. By making smart decisions about payday loans, potential borrowers can use loans responsibly in order to make debt consolidation a reality.
Although a payday loan should strictly be repaid next payday, many people find themselves unable to do so and it carries on for another month. That is when the rollover comes into play. The rollover involves another fee payment. You don't pay interest as such with a payday loan: you pay a 'fee'. For example, with a payday loans of $400 you could pay a $50 fee. That works out at an interest rate of 25% a month, or an APR of 300%. If you miss the payment, then you pay a rollover fee of another $50, so that your APR has suddenly risen to 600%. So a payday loan can be very expensive unless you make sure that you pay it. So, how do you do that?
Simple. Make your payment by direct debit from your bank on payday. Make sure that the direct debit is dated for your payday, or as close as possible to it, and you will always have money in the bank when the payment is due. If you are paid on a certain date each month, make the direct debit for that date. The definition of a payday loan is that it is paid back on your next payday after taking out the loan. If you know your payday after taking the loan then you can arrange a direct debit to be applied on that date, and the payment will be made before you can access your account. That way there will be no temptation to spend the money before you pay it back.
If payday is a Saturday or Sunday, then you will be paid on the Friday, so arrange the direct debit for the Friday. If you have taken the loan out close to payday, you might have made an arrangement to pay next payday: in that case the same arrangements will apply. If you ever make an arrangement to make repayments over a number of months, then it will be difficult to arrange a single direct debit date, and that kind of payment is not variable: it is made on the same date each month. Many people I know come to an arrangement with their bank in such situations.
Payday Loan Costs Usually a payday loan company charges 15 to 30 USD per $100 borrowed or if you are fortunate enough to live in Australia some payday lenders offer charges of as little as $11 per $100 borrowed. If you have evaluated all of your options and decide an emergency payday loan is right for you, be sure to understand all the costs and terms before you apply. Always check to make sure your lender is offering a fixed flat rate fee so you know exactly what the total cost of the loan is before signing.
Payday Loan Consumer Safety and Protection In the USA Payday lenders are generally subject to provincial/territorial consumer protection laws, and are obliged to follow "truth in lending" legislation enacted by each province/territory. While legislation may differ between individual states payday loans, are considered extensions of credit for purposes of federal consumer protection law. Similarly in Australia there are several laws to protect customers from predatory Payday Loans Agencies.
In summary, potential payday loan customers can use cash advance loans to help with debt consolidation. This article provided a short list of tips about how to use a cash advance loan to eliminate debt and to avoid getting into future debt. By making smart decisions about payday loans, potential borrowers can use loans responsibly in order to make debt consolidation a reality.
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