Payday Loans

How To Get A Cash Advance Without Getting Into A Payday Loan Trap?

If you are into a temporary financial emergency and there are no better alternatives available out there, you must learn the secret on how to get a cash advance without getting into a payday loan trap. First things first, payday cash advances never make an excellent financing option regardless of how urgently you need money unless you are 100% sure about your financial ability to repay such loans on its set due date without fail. It is very important for you to understand that

payday loans are extremely costly and failure to make the repayment in time is the only reason why borrowers often end up getting trapped into a vicious cycle of payday debt.

Get A Cash Advance Only If You Can Repay It In A Timely Manner

If you do not want to fall into a payday debt trap and still want to get a cash advance, you must make proper arrangements for its timely repayment in advance. If you have even the slightest of doubts about your financial ability to repay the debt on the scheduled due date, you are advised not to obtain these types of loans. The problem with payday cash advances is that they lend you a small amount of money and require you to pay a far much higher amount of money within just a couple of weeks (on the next pay day). The annual percentage rates that payday lenders charge often fall in the range of 200% per annum to as high as 750% per annum or even more. For a $500 of loan that you obtain for a short period of 14 days, you may be required to repay over $800. Therefore, you must make a careful decision about whether you can afford such a highly costly loan.

Try To Get An Installment Payday Loan Directly From A Payday Lender

Another safe way to get a cash advance without getting into any payday debt trap is to obtain an installment payday cash advance loan. Though it is not at all easy to find payday lenders who allow you to repay the debt in easy monthly installments, but with the rapidly growing competition in the payday lending market, many companies have now started offering such short-term lending programs. Therefore, if you do your research thoroughly, you might be lucky enough to find a lender who is willing to offer you an installment payday loan. But again, the interest rates will still be very high. So, make sure you do your calculations thoroughly in advance.

Hidden Catches

Before you get a cash advance, you are strongly recommended to read the terms and conditions explained in the written loan contract thoroughly. Many payday loan companies try to present their payday loan offers in such a way that consumers feel tempted to go for it without doing much research. You must avoid such traps. You must always make your decisions on the basis of your calculations and study, not just on temptations. For example, many payday cash advance companies claim to charge very low rate, but they actually charge a much higher rate as compared to other lenders. Therefore, you must make sure whether the rates offered is just for an introductory period, whether the rate offered will apply on the principal amount or whether the rate will apply on the outstanding due balance. If the rates apply on the outstanding due balance, an installment payday loan can turn out to be very costly for you. It can even trap you into a vicious cycle of payday debts. So, make sure there are no hidden catches. If you have confusion or doubts regarding certain terms and conditions, ask the lender to provide you a written clarification.

Last, but not the least, it is very important for you to keep in mind that payday loan is not the only possible solution to get instant cash. You are advised to look for better, cheaper and safer alternatives first. Go for these types of loans only if all other alternatives fail to work in your case, but again, you must still take care of the above factors.

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