In Part 1 of What Everyone Should Know About Payday Loans, we covered the fact that payday loans aren’t cheap and that they will ensure they get paid first. In Part 2, we will cover other secrets you should be aware of.
- State licensed lenders are normally safer: Before taking out a payday loan, you should know that not all lenders are the same. Many lenders found online are unregulated operating outside of the US. When there’s a dispute, this can make it much more difficult to resolve. They have direct access to your checking account. It’s best to go with someone who is regulated in your state because they must follow regulations regarding collections and loan renewals.
- These loans are due in full on your next payday: Many borrowers are so relieved to get the money, they don’t always understand the repayment terms. Payday loans are due in full on pay day. This means a $400 advance with $30 in fees per $100 today will make your paycheck $520 lighter come payday. This is a lot of money when you have other living expenses to cover.