For any of us, the need to access
cash quickly can pop up without warning. Often we have no time to go through
the normal loan application process, and when poor credit ratings are a factor
to consider, there is one option that provides at least some certainty. Getting
a payday loan with bad credit is possible for practically anyone.
There are problems with this route,
however. The promise of fast access to cash means lenders providing these loans
are able to charge much higher interest rates than normal, some as high as 35%.
So, while approval for emergency funds is almost assured, a hefty repayment sum
is equally certain.
What is more, the repayment term is
usually very short, in some cases as short as 14 days. It depends firstly on
the terms of the payday loan, and secondly when the next paycheck is due to
arrive (thus the loan name).
Avoiding a financial disaster can be
tricky if the right attitude is not applied from the start, so here is a brief
guide to taking control of the debt that can so easily build up.
Organize Your Budget
Most of the time, borrowers will
only have one payday loan, with bad credit making it difficult to take on any
more. But when the sum borrowed is high, the repayment schedule is usually
stretched over three or more months. This can create a need for further loans,
which then overlap to increase the repayment pressure.
It is important to make a careful
study of the situation, and to accurately budget the repayments. Identify each
loan and when repayments are due, as well as how much the repayments are. Draw
up a timetable if necessary for easy reference. A major flaw amongst borrowers
is that, after getting approval for emergency funds, they do not stay on top of
the situation.
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