You can try to pay back one loan with a second loan. It’s risky, but it can work if everything stays under control.
For example, if you have a payday loan A in the amount of USD 500 and a payday loan B in the amount of USD 600, you can reach for payday loan C for USD 1,500, payable within sixty days. Profit is evident, because smaller and often overdue liabilities disappear, there is a lot of time for repayment of a new loan, and a small amount is left for current expenses. In order not to increase the costs, as a payday loan you have to choose a completely new loan, free for someone who uses it for the first time and gives money back on time. The solution pays off and works if you can pay off payday loan C without delay. You also have to remember to always reach for a better offer and think carefully about whether you have the opportunity to return a new contract made in time.
How not to get lost in the cost of payday loans
Payday loans are not an expensive financial product, but usually the customer must pay a commission or interest rate. If the deadlines are met, this cost remains negligible, as it guarantees a short repayment period. So you don’t have to worry about using an offer found on the web based on an ad or searched for in a ranking. The customer currently has the advantage of being able to choose their offers at will.
Competition makes loan companies fight for the client, not the client for companies, which is why it is worth approaching the matter wisely and carefully verifying every, even the most interesting, offer. A person who is looking for payday loans for themselves is definitely meeting with loan offers for free. It could not be better! However, as always, it all depends on the applicant himself, because a free loan can also get you in trouble. However, it is enough to be honest and consistent so that this does not happen.
All payday loans described as free are free until the repayment deadline.
Later, various procedures begin, at the expense of which the company, of course, burden the customer. Interest must be mentioned among these costs – they increase quite quickly, because they are calculated for each day – reminders, text messages with reminders, e-mails, telephones, possible visits, letters sent by traditional post. If this does not work, the parabank transfers the debt to the debt collection department or an external debt collection company, which is often the same as terminating the loan agreement. Instead of waiting for the company to initiate this type of procedure, it is worth earlier (e.g. a few days before the repayment deadline) to call with information about your problems and with a request for extension or anything else, which will reduce costs.
Most Best bank appreciate when the client puts the matter honestly and wants to pay back the debt, which is why they offer a dozen or so days of extension, and an additional month, sometimes refinancing or spreading into installments. However, you can meet with a completely different approach – all possibilities of helping the client will appear only after some time.
Thanks to this, the lender will earn, because he will gain interest, costs of prompts, etc., although this is not entirely fair – you can even call it a trap. To not violate the law, companies must write about it all in the contract. The key to avoiding problems is therefore to read the contracts carefully, which most customers do not, signing documents in a hurry to receive money as soon as possible.
Sometimes, in order for the client to use any form of extension or refinancing, an appropriate document should be sent to the loan company. Patterns are usually available on the web, you can search e.g. on forums devoted to loans and credits.