dealing with debt and a financially irresponsible spouse

There are a number of reasons why you may be getting ready to take out a payday loan. You may have written a check that will bounce if you don't put funds in your account, causing you to be subject to a high bounced check fee. Your utilities may be past due, and a shut-off can be looming. This can leave you without that service and may carry a high shut-off and turn-on fee. Or you may have a car repair that needs to be done, and you have no other way to get the money. Regardless of why you are considering taking out a payday loan, it is important to do your research on companies and find a company that makes the most sense for you. Here are three factors that you need to consider and pay attention to when selecting a company to take out your payday loan through.

The Interest Rate of the Loan

One of the biggest factors to consider when selecting a payday loan company is what interest rate they charge. Every state caps how much a loan company can charge, so you will never be charged higher than the legal amount. However, not every company will charge the maximum amount allowed by law. As such, it pays to take your time and shop around to find the best available interest rate available in your area when you are looking to take out a payday loan.

How Payments Are Made

Another important factor to consider when selecting a payday loan company is how they expect payments to be made. It is not uncommon for a payday loan company to ask for a post-dated check or to take automatic payments from your bank account. Other companies will allow you to make cash or debit card payments in their store or online. Ultimately, you have to select the payment method that is convenient for you. However, when selecting a method, make sure that you can comply with that payment method. For example, if you go with a company that only takes post-dated checks, and another emergency arises when the payment is due, that post-dated check may bounce and you may incur more fees. As such, you need to carefully consider how payments are made and how that payment method may impact you.

What Happens if You Can't Pay

The last factor that you need to pay close attention to when selecting a payday loan company is what happens if you can't afford to pay or don't have the full payment when your loan is due. Some companies will extend your payment due date if you can come up with a payment that covers interest. Other companies are less willing to work with you and may have higher penalties and fees for late payments. Another factor to look at is whether the lender is a member of the Community Financial Services Association of America, or CFSA. Under CFSAs best practices guidelines, extended payment plans should be granted to people who are unable to pay the loan back. While you may fully intend to pay the payday loan back, you never know what life will throw your way. Because of this, you want to make sure to ask companies what happens if you can't pay before you potentially find yourself in this situation. This will help you find a company that has fair terms if you are unable to pay the loan back as discussed.

You have many options when it comes to selecting a company to take out a payday loan with. However, every company operates different. The interest rates offered, how the loan can be paid back and what happens if you can't pay all vary from company to company. Taking the time to do your research on various companies will help you find the payday loan company that makes the most sense for you.