The short term loan industry in the US has expanded across the board. There are over 19,000 payday loan service providers in the US according to recent statistics. Online loan lenders in the US are said to have loaned over $10 billion in the US in 2010 alone. With so much money flowing into the short term loan industry, i’s really important to understand how to use these loans to your advantage. If you need a cash loan for the short term, take a look at these top tips on how to use them properly:
- Avoid loan extensions: Extending a short term loan can be done but on the whole, you should try and avoid loan extensions because they could add extra charges to your loan. Keep your financial stress low by not extending your loan and paying it off in full. If you decide to go for a loan extension, make sure you understand what is going on with your loan.
- Understand APR: The annual percentage rate (APR) is the cornerstone of the US loan industry whether you are borrowing a credit card or a short term loan. This is what the lenders charge and it is the interest that you will repay on top of the loan itself.
- Borrow small amounts: The key to cash loans is by only borrowing smaller amounts instead of bigger loans which banks tend to do. This is because the interest will always be high and a large amount could end up causing financial stress if you are behind on repayments. Smaller sized loans are easier to handle and when dealing with interest-laden loans, the smaller it is, the better for your wallet.
Being careful is crucial if you are planning to apply for a loan online from a consumer lender. Take control of your personal finances with these top tips and remember that these loans are only for the short term, not for the long term of your personal finance portfolio.
Written by Jon the Saver
