Payday loans are a great way to secure quick cash when you need a little boost through to your next pay check. However, they are a relatively expensive from of credit, even though cheaper than the alternative of taking the hit from missed payment charges or bank charges. Be that as it may, with some providers that accept early repayment, you have it within your power to reduce the cost of taking the loan and save yourself some money.
So how exactly do you pay off a payday loan faster?
Many loan providers accept early repayment, out with the agreed payment dates and amounts. Check with your lenders before applying if they accept such early payments, and what the terms are if they do. Most do not carry an early settlement fee and in fact paying back your loan early is encouraged. As interest is calculated across the number of days the loan is agreed to last for on application, you can reduce this interest when paying off early and thus saving money. This can make the loan a far cheaper source of credit to obtain.
Never borrow more than you need
If you borrow more than you need, chances are it will take you longer to pay it off, or it will present more of a burden against your next pay check putting pressure on you to come up with the funds. If you borrow only what you need and no more, then you reduce the chance of needing to extend the loan delaying the closure of the agreement.
Ok so you have a loan, but you could still borrow cheaper credit
Even if you secure a payday loan, you should still see if you can borrow the money you need from a cheaper source before payday. The payday loan is great because it is quick and it can serve its purpose immediately. But if you can secure cheaper credit from another source but it’s just going to take a few days to achieve, do it anyway. Use this to pay off the payday loan early, saving yourself the interest, and pay back your cheaper source on more favourable terms.
If you are going to try and pay off your loan early, make sure you can afford it. Don’t leave yourself short as this may only require you to look for credit again before payday and thus encourage a negative cycle that you could otherwise avoid.
Save My Bacon can help! We providea fast and reliable payday loan service with no hassles or confusion. Just quick and easy money in your account. You can apply for our loans on the calculator below. Why not see what we do and review the following links if you would like to find out more about us and how our service works.
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