If you are thinking of getting one of these loans, the real question you need to ask yourself is: DO YOU REALLY NEED ONE? Because of high interest rates they sometime can be unpopular, but if you are short for the money they can come as a handy solution.
- Am I having hard time with a money?
If you are, this kind of loan won’t certainly help you solve your financial problem, if not, you will be in greater debt. Best solution in these situations will be to seek expert help from your credit adviser.
2. Is this money necessary to me, can’t I handle my financial situation until my next salary?
Ask for more time to repay your bills and installments for credit if you have one. Tell them you will pay them off when your pay check arrives. If nothing works, this loan may come as a final solution.
3. Are there other means to borrow the money and not to use payday loan?
Sure there are, but you need to be resourceful and find a solution that isn’t going to make you spend additional money. You can always ask for pay in advance or a small loan from your bank. You can even ask your friend and family to help you out and lend you the money.
4. How can I be sure if I can pay this loan on time?
There isn’t IF here, you must be 100% sure that you will be able to return this loan on designed time, because penalties and interest rate are really high. And these conditions will certainly make your financial situation worse.
5. Am I having any additional debts?
Since you are considering payday loan, then the answer is yes. You need to review your budget with some expert help, before even thinking of getting one.
6. How much this kind of loan will cost me if I overstep the time limit?
You need to ask this question to a lender, ask to see total costs that will include interests, fees and penalties. Time of the repayment must be especially reviewed. Many legislative require from lenders to present maximum costs of loans and that interest rates would be transparent.
7. How much will this loan cost me if I don’t pay it on time?
These conditions vary from lender to lender, if you don’t have enough funds on your account in arranged time, penalties can go from 20 dollars up to 50 dollars. This is regulated and fully transparent in some areas, but in the others, where penalties aren’t regulated, they can come up too much higher amount. This question you also need to ask your lender, so you would know what to expect in advance.
8. Do I have a right to ask for a copy of the loan agreement before I sigh it?
This condition is a “must”, if a lender doesn’t provide you a copy of loan agreement, don’t sign anything and don’t take the loan. You have to be in possibility to reconsider the conditions of a loan before you sign it.
9. Do I have the right to cancel this agreement, if I find it unsuitable for me and how much time do I have at disposal?
You will usually have day or two after you sign an agreement, but this question is also for your chosen lender.