Extra money at the time of squeeze is sometimes necessary. Unforeseen events such as maintenance on the car are responsible for unbalancing the budget. When this type of situation occurs, it is common to resort to installments of credit card bills or payday loans. What many people do not know is that the interest on cards and overdrafts is usually much higher than that of a loan. Below, see how to keep your accounts up to date using a payday loan.
Stay focused on the most important debts
Before taking out a payday loan, carefully analyze your financial situation to make sure that there is a real need to borrow money from an institution. If you take out a loan, focus. Make a survey of the bills you have to pay and direct the money to that end – the payment of credit card or overdraft bills, for example, is important to avoid the high interest charged by the bank.
There are other emergency situations in which the loan money can be spent, such as health problems or urgent renovations to your property. Spending on travel and automobiles, for example, can be avoided, in order not to further complicate your financial life.
Choose the financial institution
After defining the need for a payday loan, it is time to choose the institution that will provide the credit. Ideally, you should talk to your bank manager to find out what fees are charged – in addition to the payment facilities, of course. But don’t be restricted to your bank. Other financial institutions also offer personal and sometimes even cheaper loans. The simulation can be done over the internet.
You can find several offers from partner institutions of Good Lenders within the application. The interest is one of the lowest in the market and the money is available two days after the credit is approved.
It is always important to pay attention to high interest charges! Therefore, try to find out about the Total Effective Cost (CET) of the debt, which shows all the rates that must be paid in this transaction (this includes insurance and taxes).
Plan your debt payment
Now that you know when and where to apply for a payday loan, you need to schedule the payment of that debt. A proposal with many benefits can complicate your financial life in the long run, after all, you cannot predict the emergence of new expenses – such as children, college, retirement, etc. So, look for the best loan financing conditions and avoid accumulating debt for a very long period of time.
Organize your financial life
It is also important to have control over your entire financial life. Set aside a notebook or folder on your computer with all your income and expenses, and keep track of the amount you have available per month. Have at your disposal the number of installments of your payday loan, as well as the amount to be paid, the estimated time to settle the debt, the interest rate, the incident taxes, insurance and the possibility of amortizing the debt. If you are a user of the Good Lenders application, you can place all the installments in the planning and thus already schedule for payments.
Check with the financial institution if there is a difference between monthly and annual payments. It is also important to stay informed about contract charges, such as fines and stay fees – in case of late payment.
Watch out for scams
It is important to always be on the lookout for emails and calls from alleged financial institutions offering easy credit. Unfortunately, this type of situation is common, and if you provide your personal information, you could be the victim of a scam. Never enter your details via email or phone. Financial institutions do not carry out this type of procedure (offering a loan) without your request. Check out here 5 tips to avoid falling into scams.
Now that you know everything about payday loans, leave a comment telling your experience with this type of transaction.