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Practical Advice On Payday Loans

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by Danny Rodgers
(California, USA)

Negotiating a Lower Payday Loan Rate

Payday loans come with a high cost of borrowing – but what many consumers don’t know is that the payday loans can be negotiated with between the consumer and the payday loan company, allowing the customer to reduce the fees and even the interest rates that are being charged.

How should the customer go about negotiating the payday loan interest rate and fees to reduce the total cost of the payday advance? First, the customer should ensure that the loan is being taken out for as short a time as possible.

Reducing the time of the loan can reduce the amount of the interest being charged and allow the customer to negotiate with the payday loan company for a lower rate, since the money is being borrowed for a short period of time.

What should the customer consider when they are negotiating a lowerpayday loan rate? Customers that are trying to negotiate a lower payday loan rate need to realize that not every payday loan company is going to offer a lower rate. There are some companies that have set interest rates and fees for the loan.

When it comes to borrowing from these types of companies, customers should ask whether the payday loan company will match the prices and offers that are available from the competitors – and often times, the company will match the price, allowing the customer to gain access to the lower payday loan rate and charges.

While negotiating the lower rate successfully can be a great way to reduce the overall cost of the payday loan, customers can use other techniques to reduce the cost of borrowing.

Customers can find funds to repay the loan early, using found money or even making use of early paychecks to reduce the borrowing time and repay the loan. Some payday loan companies offer incentives and lower interest rates for doing so, allowing the customer to save big on the cost of the loan.

Payday Loan Repayment Options

It happens; sometimes we are just unable to find the money in the budget to cover the gap between the expenses and the income. There are emergency expenses that seem to pop up and take over the budget and often times there is simply not enough money to cover these costs.

Using payday loan services, the customer has an option to get the money they need – even if they haven’t made it to the next paycheck when the funds are available.

Using the payday loan services can allow the customer to get the money needed in as little as an hour and have the flexibility to repay the funds on the day of the next paycheck – but what if the customer is unable to pay the full amount when the payday loan advance comes due?

Here are some of the options that are available to customers that are searching for an alternative to the loan repayment in full, when the paycheck is received:

Extend the Loan

Customers are often given the option to extend the payday loan and pay a portion of the amount owing when the payday is received – and put off the rest of the loan until the next paycheck, often a period of two weeks later.

Though the loan is extended, the customer should realize that there are often interest and finance fees and charges associated with extending the loan, it can help to reduce the strain on the budget.

Customers that have chosen to extend the course of the loan are often able to do so for one pay period, and can choose to repay a portion of the loan, extending into the next period when the term is up. Though convenient, this can cost the customer up to one hundred percent interest if extended repeatedly.

Updated: November 11, 2012 — 1:12 am

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