So, you have balanced your budget a gazillion times and you have asked everyone you know, and no matter how you add up the numbers, there just isn’t enough money to make ends meet until your next payday. You need to repair the car, the bills needs to be paid, and there is no food in the pantry. It is time you choose the best payday loan for your situation and make the decision that will help you get through this difficult time. So how do you pick the right payday loan?
Office of Fair Trade
Before making a decision on any payday loan company check with your local Office of Fair Trade (in the UK) or the Better Business Bureau (in the US and Canada). This agency will allow you to search online for reports of trustworthy businesses. If a business has had multiple complaints or problems, this will be recorded to help you make an educated choice. Compare local companies that offer payday loans for possible involvement in scams or illegal practices. This is a great place to start your research and evaluation. Any company with questionable practices should be avoided.
Measure your Interest Rates
One of the most variable factors of payday loans is the interest rate. Depending on the company and the amount you borrow your interest rate can vary widely. The best way to get an idea for this is to use a site like Compare Payday Loans. Generally these interest rates are well over 300 percent which means that your paycheck will be spent largely paying back interest. Look for the company with the lowest interest rate possible. This will save you money in the long run and help you when you are paying back what you owe.
Brick & Mortar Loan Companies
Consider choosing from a physical location in your community. These institutions much follow state and national laws regarding the lending of monies and payday advancements. You borrow set amounts plus added fees and interest charges. The laws protect the consumer with these locations because if there are problems it is easier for authorities to find the company. When paying back these loans, you have the advantage of knowing where to go and how to comply.
Online Companies
Buyer beware; the lure of fast cash is alluring but the fine print will get you here. These online companies are not always local to your area and they do not have to follow the same rules and regulations. Most of the time you are only paying interest and fees, while rolling over the principle and accruing more fees and interest. This can quickly snowball.
Read all the fine print
After you have researched all the companies in your area, looked at the online options, talked your location agencies, and asked all your questions, you still need to read all the fine print. Do not take this lightly. While many companies will issue loans with little information and times, you can be caught with terms that are dangerous and may change if you are not careful. There are not only interest rates that add up but also fees. If you don’t understand something in the instructions, ask a unbiased third party to explain on your terms.
