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Dangers of Carrying Over Payday Loans to the Next Cycle, and Ways to Pay Quick Cash Loans Back

Written By adi mulias on Friday, February 8, 2013 | 8:19 AM

When applying for a payday loan you should always check for fees and charges that may come with the loan. The fees and charges of a cash advance can be very costly if you use the wrong lender. You want to make sure you find the best lender that has little to no fees included in your loan.

There are many customers that choose to extend the course of the loan and repay the payday loan in two or more payments. Doing this can cause the payday loan to accrue even more interest, and can cost the customer even more than the expensive payday loan convenience fees in the first place.

Customers that extend the life cycle of the payday into the next two week pay period are essentially doubling the fees that are being paid for the loan service, and since they are often now considered a new loan, rather than an extension of the loan, this can become very costly. When customers make the decision to carry the payday loan into the next cycle they accumulate the extra fees that come with it.

Using a payday loan service can be a convenient way to cover those unexpected costs that have built up within the budget, but customers should consider the repercussions of not being able to pay back the loan on time.

Customers using cash advance loan services have a number of options available to them when it comes to the types of loans that can be borrowed. Customers can choose from cash advances that are applied for online and deposited into their personal checking account. They can get a cash loan that is applied for in a traditional cash advance store. Or they can apply for a loan over the phone, using their credit score to determine whether they are eligible for the loan.

Just as there are many options when it comes to applying for the cash advance, customers have a number of options available to them when it comes to the repayment of the loan. Below are the most common ways of repaying a loan.

You can repay your loan with an automated withdrawal from the checking account. Customers can choose to take advantage of an automated withdrawal from their checking account as a way to repay the payday loan. This option is often used for loans that are applied for online or over the phone. These types of withdrawals are authorized by the customer, and require the customer to provide a copy of a check, or the routing, institution, and checking account number to the cash advance company.

You can also repay the loan with cash or debit at your local payday loan store. For payday advances that are applied for in store the customer can easily make a visit to the store to repay the advance that had been given to them. Using a credit card, cash, or even a debit card, the customer is able to repay the proceeds of the loan and interest in full - but often is required to make a trip to the Payday loan store to take advantage of this service.

Customers should determine the repayment options for the cash advance before the loan is applied for, to ensure that the loan will be repaid on time.

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