When contemplating payday loans, certain realizations must sink in. One of the most important is that the lending company will charge penalties for late payments and the bank will charge non-sufficient funds (NSF) charges on your account. Ultimately, you will find yourself in deeper financial trouble because of these extra fees!
Fortunately, there are things you can do to avoid incurring and paying for these payday loans fees.
Shop for Low-Cost Loans
With numerous lending companies, both online and offline, offering cash advances, there is simply no excuse not to shop around for low-cost alternatives. Although the payday loan industry is criticized for its high interest rates that appear to prey on the financially vulnerable, most of the companies actually have reasonable rates especially when the high risk they take on is taken into consideration.
Obviously, low-cost loans are easier to pay. And when you do pay them on time, you can avoid paying the extra fees and charges! It's as simple as that.
Seek Credit Counseling
Even when you have already availed of payday loans, seeking credit counseling is a good way to start taking control of your finances, in every sense of the word. You will be provided with education on budget planning and financial management so that, ultimately, you can get out of the cash advance cycle. Hence, you will avoid paying more fees and charges on your payday advances!
Stop Payment Orders
At least 5 working days before the payday loans are due and demandable, you can make a written request of stop payment to your bank on the check issued to cover the loan. However, you must also notify the lending company of your decision on the matter.
This way, you can renegotiate with the lending company for lower interest rates and late penalties as well as longer time to find the funds to pay off the debt without worrying about NSF charges. If you have read the fine prints of the contracts, the process for revocation of access to your bank account should be clearly stated therein. Stick to it.
Sure Money in the Bank
This is the most obvious solution to the issue of avoiding extra charges and penalties on your cash advances. When you have sufficient money in the bank on the day when the check is to be encashed or the account is to be debited, you will have no problem in this respect.
If you have to work a second job just to fill in the gap, then do so. You will find that working to pay off your original payday loans is easier than working to pay your original debts plus a host of other fees aside!
When you have explored all these options, you will delightedly discover that extra fees and charges are things of your distant financial past. And of course, it doesn't hurt to negotiate with your credit provider. Despite the bad rap about the payday industry, you will find that the men and women behind it are as human as you are and, hence, willing to hear and help you out.
Loans Till Payday - Payday Loans and Cash Advance in Ontario, Canada
20 Eglinton Ave. East
Toronto, Ontario, Canada