What Are My Responsibilities as a Payday Loan Borrower?

What Are My Responsibilities as a Payday Loan Borrower? For your payday loan experience to be a helpful one, you should be aware of certain responsibilities that come with a short term loan. A person can easily get in over their head if they use payday loans without thinking about the consequences. 1.Only Use for Unforeseen Circumstances – A payday loan is a short term loan that is available for you to get an advance on a future paycheck. It should be thought of only as means to get out of an urgent situation. Not for day to day living. 2.Know what you can afford to borrow – Although many times the lender will help you with this, you should already know in your mind what amount of loan you can afford. If a lender is offering you a loan on your entire paycheck, it usually is not a good idea. Always leave a cushion for daily living expenses on the week the loan is due. The optimal payday loan is approximately half the amount of your paycheck. 3.Pay Back the Loan on Time – To avoid being put further into debt, you should always pay your loan on time. Some lenders may offer to postpone your loans’ due date if you pay the fee associated with that loan. The problem then occurs that you still owe the loan and the lender tacks on an additional fee. This can cause many problems and could cost you hundreds of dollars more by the time the loan is actually paid. 4.Only Have One Payday Loan at a Time – You should never have more than one payday loan at a time this helps to make sure that you have the means to pay back the loan. If you have two payday loans you may have to use one to pay the other which is not good financial practice. 5.Find The Right Lender – It is your responsibility to research the payday loan company that you would like to use. Find a lender that offers low rates and has the customer in mind and you will get the best results. Once you find a lender you establish a relationship making it easier the next time you would like to apply for a payday loan. When deciding if a payday loan is right for you, follow the guidelines above to help you make the right decision. Payday loans provide hundreds of people a day with the emergency cash they need until next payday. But it also carries a certain responsibility for the borrower.