Have you ever been stuck without cash and your paycheck is still a few days away? Many people in this exact same situation get out of it by applying for payday loans.
What’s a Payday Loan?
A payday loan is a fast and easy way to access some cash. It is basically a cash advance secured with a personal check. The maximum amount that can be accessed via a payday loan is usually $500.
Compared to applying for a regular loan, it requires very little paperwork and can be accessed by anyone at any time. This makes it a convenient way to raise enough money to tide you over till your next paycheck.
How Does a Payday Loan Work?
Payday loans are offered by banks and non-bank establishments alike. As earlier stated, applying for one is fast and easy. All you need do is provide the lender with your banking details and identification. Once that’s done, the amount of money you’ve requested will be provided immediately or within 24 hours.
But bear in mind that payday loans are not free. There is usually an upfront loan fee and you have to pay back the loan within a specified time frame, usually with a very steep interest charge. Sometimes as high as 400%.
Unlike regular loans, a payday loan can be secured with a postdated check serving as collateral. Once your pay comes in, the lender will cash the check and withdraw the borrowed amount plus the agreed interest. Or, if you prefer, the lender will extend the loan.
But bear in mind that every time the loan is extended, the lender will add new fees on the already owed sum, thus increasing your debt.
How to check payday loan balance?
If you’ve been extending or rolling over your payday loan, clearly your debt would have accrued quite substantially. In order to start paying off this debt, you need to first identify your loan balance – The loan balance is exactly how much you have left to pay on your loan.
To check your payday loan balance, you can do any of the following:
• Check online: This is a convenient option you can pursue if your lender offers such facilities. If checking online, you can use a smartphone or a computer to access the lender’s website or banking app to check your loan balance.
In the unlikely event your lender doesn’t have a banking website or app, you can send an email requesting for your loan balance.
• Call your lender: If no online options are available, you can call your lender directly to request for your payday loan balance. The requested information can typically be provided in a matter of minutes or can take hours depending on the lender.
• Contact your lender in person: If you prefer the more direct approach and don’t mind the trip, you can visit your lender’s physical office in person to check your payday loan balance.
Once you’ve verified your loan balance, the next thing to do is start working on paying it off as fast as possible. How long and how much effort and sacrifice it will take to pay off the loan will depend on the size of the payday loan balance and how much interest is being charged on it.
Whatever the case may be, just remember that the sooner you pay off the loan the better. If not, the debt will only keep on accruing as the interest on it keeps multiplying.