Har du brug for nogle presserende kontanter og agter at betale tilbage, når din næste løn skyldes? Så skal du overveje payday lån. A payday loan as the name implies is a form of loan taken out against your approaching salary, and you can also consider it a salary advance by paid out by a third party and not your main employer. A good example is payday loans Columbus Ohio.
Payday loans become a necessity when you require urgent cash to settle medical bills, pay utility bills, finance an unforeseen trip, or renovate your home after a storm. You also get to consider taking out payday loans when you can’t secure any other loans otherwise – either from friends or without solid collateral security.
There are certain facts about payday loans you must know –
- Payday loans are generally for small amounts, usually less than $500
Since payday loans are intended for settling urgent cash issues, the amount you can generally access is not high and usually less than $500 – an amount that can be easily paid back from your next salary.
- You agree to pay back from your next salary
To ensure that you pay back the soft loan on your next payday, you agree to write out a signed check covering the entire loan amount and any applicable fee to your lender. When your next salary is due, your lender deposits the check in his checking out and gets paid without any issues.
If you don’t want to write out a check, then you must give your lender full access to your bank account so that he can withdraw the due amount on the due dates that you get paid by your employer. The access could be electronic in this case.
- You can arrange to pay back over two or three months
It is not uncommon to have customers or borrows request that payday loans be deducted or paid back over two or three months. This is called rollovers or renewals. The loans may then be structured to be paid back over a couple of months – but it should be noted that the applicable fee remains the same over the repayment months.
If you have to pay an additional $15 over a $100 loan, this means you pay a total of $115 at your next payday. But if you negotiate to pay back the $100 loan over three months, the $15 fee remains constant every month, meaning you get to pay back a fee of $45 over the three months period to make a total of $145.
- You can access your payday loans via various means
You can usually access your payday loan within 24 hours of approval. The lender might issue you a bank check for the loan or he might just ask for your account details and then transfer the amount to you. The loan can also be loaded to your prepaid debit card or ATM so that you can make electronic payments with it.
- There may be alternatives to payday loans
Payday loan lenders may not like to hear this, but you must only borrow against your next payday as a last resort. Try borrowing from friends and family first before considering payday loans. Do not borrow above half of your monthly salary – so you mustn’t be cash-strapped at the end of the month because of any loans.
Lastly, be aware that you may have to provide some form of employment verifications as a condition, and your monthly salary duly credited to your bank account by your employer before your payday loans application can be processed.