The loan has a special 72-hour expiration date attached, and once it expired, it can never be used again. That way, you get the cash you need, but you don’t have to worry about paying it back. It’s perfect for helping you get out of an awful situation temporarily. Even if it goes away in 72 hours, it’s still long enough to help out, and because you can only use a loan like this once, it means no having to pay back $200 immediately.
One-time-use loans work in a similar way to payday loans. You get a loan that’s tied to your checking account, and when your 72 hour period expires, the money gets returned right back to your checking account.
The whole process is electronic, and you don’t have to go to a local payday loan store or speak with an actual person.
You need to assess your financial situation and know what you can afford. No matter how desperate the situation is, do not borrow more than you could repay over time. For example, let’s say you borrowed $500 over a 3 month period, with a finance charge of 39.99% and an APR of 390% (APR = Annual Percentage Rate). You would probably have to pay about $750 in interest – $301 in finance charges and $449 in interest – more than double the price of what you expected to borrow.
Be realistic about your financial experience and what you can manage when it comes to credit consequences. If you are like many other people, you may want additional money until your next paycheck arrives. One advantage of having a free checking account is because banks often have incentives to keep their customers by providing free checking accounts.
What are the Incentives of Banks?
Because banks collect fees from listing checks, debit card payments, and ACH debit payments, there is a great monetary incentive to keep their customers to keep their business. Banks do this by allowing them to have free checking accounts. The deal is that when you open an account with them, you need to deposit a sum of money into your account each month. Instead of paying them money for their services, banks are willing to give you banking services for free. However, that does not mean the bank will pay for all your checks and cash your checks without charging you.
Repayment Plan: Overcoming the Payday Loan Cycle
The repayment plan is reasonably easy to setup. This is just a one-time-use loan, so it all happens electronically through your bank’s website. You start by filling out the online application, which takes about five minutes. Once the application is filled out and the loan is approved, cash advance Kansas city mo will have 72 hours to transfer funds from your checking account to your account. If you don’t have enough money in your checking account at the transfer time, the process fails, and you’re out of luck for another week or two. Once this stage is done, you can make an extra payment on your every month until it’s paid off completely.
Take Action on Your Debt Management Plan
The great thing about multiple payday loans is that they make debt management easy. You can repay off other debt and make regular payments on your loan at the same time. This is a major advantage of this particular product compared to a traditional payday loan, which will require you to have enough money in your checking account to make an extra payment at the end of each month.
How to pay back multiple payday advances
Overtime when you are in between paychecks, you could end up paying back different loans at different times and owing more interest than you would have on a single loan. Make sure that if you really need help to pay off multiple payday advances, you can afford it before applying.
The Risks of Multiple Payday Advances
- You take out a $600 payday loan, and you need six months to pay it back. At the end of those six months, you still owe $500, so you take out another loan. Your new balance is now $1,100.
- Instead, you decide to take out three loans from us for $200 each, making your new total balance $600. If you pay that off in six months, you will owe another $200, which is the same amount of money that you would owe with the single loan.
Payday advances are not intended to be used to pay off multiple payday loans.
Personal Loan: Personal loans can be a great way to bring unsecured debt under control. A personal loan allows you to borrow money from a bank or online lender to pay any expenses not covered by your paycheck. Personal loans offer more flexibility than most credit card debt repayment solutions.
Commercial Loans: Commercial loans help businesses get the capital they need when credit lines dry up, and cash flow needs exceed the available credit line. Commercial loans generally have better terms than consumer personal loans.