A lot of concern and worry surrounds cash in advance loans, and some of these concerns are justified. There are steeper interest rates that come with this form of loan rather than, say, a line of credit. But the money that our customers pay to get cash fast is equal to or even less than what they would pay in overdraft or bounced check fees from their bank. Because our cash in advance loans are often so fast and easy to come by, some may be tempted to take advantage of these quick and simple loans. We want our customers to get the most out of their payday loan, which is why we advise them of the following:
Know the Purpose of the Loan
There are reasons why a payday loan may be absolutely necessary. Your vehicle breaking down or a sudden costly medical emergency are two of the most common reasons why people Need cash fast. There are some other reasons why one may be seeking this type of loan which may be a sign of trouble, such as:
1. Paying down monthly bills
2. Purchasing an unnecessary impulse item
3. Taking a vacation
Our payday loans can be used effectively for the above purposes, but those taking out this type of loan for non-essential reasons must be sure that they follow the second tip below.
Only Borrow What You Can Pay Back
It can be tempting to take out more than you need. After all, wouldn’t it be nice to create some sort of financial buffer so that you do not find yourself suffering the same financial hardship next month?
Be smart with your payday loans. As a general rule, you should never take out more than what you can pay back on time. While companies such as ours do a little bit of investigation into your finances, we generally only require a pay stub proving you make a certain net income each month (at Hot Payday, this happens to currently be $1500 a month). This leaves it largely up to our customers to determine how much they need and how much they will be able to pay back and in what time frame.
That said, our customers often are finding themselves in stressful and unforeseen predicaments which is the reason why they need money quickly. If you find yourself in such a situation, we do extend an Extended Payment Plan to our customers. This plan allows our customers to repay his or her loan over a greater number of weeks, making repayment more manageable and without any hard hitting penalties.
Budget Your Loan
We advise those coming to use here at Hot Payday to budget their loan. This will help with the point above, and will help Keep you on track with your loan repayment. Think ahead and have a strategy so that you can stretch your dollars out as far as they can reach.
