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Payday Loans Or Cash Advance Loans - Useful After A Bankruptcy
By: Carrie Reeder
Payday loans, also known as cash advance, are a useful tool after bankruptcy. By
keeping current on your bills through a payday loan, you can rebuild your credit
history. The key is to only use these cash advances for emergencies.
Using Payday Loans
Faced with a financial emergency, it is better to apply for a cash advance than
skip a bill payment for two reasons. First, after bankruptcy the best thing you
can do to rebuild credit is to pay your bills on time. If you are 30 days past
due or longer, it will take three years for it to be removed from your credit
history.
The second reason to use cash advances is to save money on late fees. Often a
$30 late fee on an account will be more expensive than the financing fee of a
payday loan. The same is often true with loan payments and bank charges.
Find The Right Payday Lender
Shop payday lenders just like you would shop for any type of service. Compare
fees and interest rates, as well as, repayment options and customer service.
Consider looking online for a payday lender. Many of these online lenders offer
instant approval with no faxing of paperwork required. It is also much faster to
compare rates and fees of online.
Avoid High Costs
Cash advances are meant to be a short loan until payday. The high costs of
payday loans come when people put off repaying these loans and the interest fees
add up. Plan to pay back your cash advance on your next payday.
But if you can’t pay your loan back, talk with your payday lender. You can pay
just the interest charge for that period or make only a partial principal
payment. Above all, you don’t want to skip a payment, which will add up fees
quickly.
Plan For Future Emergencies
Once you have gotten through your current financial emergency with a payday
loan, start an emergency savings fund. By saving as little as $10 a week, you
can have $520 in an account after a year’s time.
Also consider applying for a credit card for emergencies after establishing six
months of good credit history.
About the Author:
Carrie Reeder is the owner
www.abcloanguide.com, an informational website
about various types of loans. To view our recommended sources for payday or cash
advance lenders online, visit this page:
www.abcloanguide.com/paydayloans.shtml |
