#long term payday loans
Longterm Payday Loans
By definition, payday loans are short term loans. They are given instantly but you will have to repay them quickly as well. They are extremely perfect for unplanned expenses that your last paycheck cannot cover. However, you should never make use of a payday loan as a regular source of money. Payday loans are made to cater to temporary financial shortcomings of people who are otherwise financially stable.
What is a long term payday loan?
Basically, long term payday loans are short term payday loans which are extended by the borrower. This means that the borrower was not able to pay for the loan after fourteen days or after the agreed upon maturity period. As a result, the loan has been extended.
However, these types of loans are essentially like any other payday loan. They have minimal requirements and they are very easy to process. If you shop around, you can find low fees and if you pay on time, you will eventually pay less. These loans do not require credit checks as well.
Some points to keep in mind
Long term payday loans can be very expensive. While the usual rate for an ordinary payday loan is $20 every $100 that you borrow, the usual rate for an extended payday loan can be as high as $50 for every $100. This is because of the fact that most payday lending companies will charge a finance fee for every loan extension. Note that the finance fee is separate from your usual interest rate for the loan. There are even payday lending companies that will charge a higher interest rate once the payday loan gets extended.
Creditors should take note of the fact that payday loans are financial obligations. Therefore, regardless of whether the payday lending company allows extensions or not, the creditors should pay for their debts on time. If you are not sure that you can pay for a payday loan on time, you might as well not avail of one. Availing of a loan that you cannot repay on the agreed date of payment is definitely a sign of irresponsibility that may lead to overly inflated debts.
If you badly need a payday loan, check the finance fees for due date extensions. No matter how instant you may need the money, take time to shop around and compare the terms and conditions of long term payday loans. Never settle for the first payday lending company that you bump into. Remember that you have to choose wisely especially on matters that concern your personal finances.
A borrower of a payday loan should check the loan amount, the maturity date, the interest rate and the roll-over terms and regulations. Pay specific attention to what-ifs and analyze what will happen if you cannot pay the loan on time. Check the additional finance fees, as well as the number of times that you can roll-over your loan amount.