Okay, you have decided that you need a payday loan. These are great sources of fast funding but borrowers should be cautious because they are not without risk. Here are a few things that you should do before you take to your payday loan. We know that you are probably in the middle of an emergency, but take a minute, take a breath and read this short list of things you should do before you sign.

  1. Call your creditors and ask for extensions.
    Many times your creditors may give you a free extension. They want you to stay current and not default. Your credit card company may allow you to make an interest only payment. Maybe your landlord will cut you a break and let you be a few days late.
  2. Write down what needs to be paid.
    Make a list of what needs to be paid with your current paycheck. If anything can be moved to your next payday, move it. Now, subtract the amount of money that you have to see how much you are short.
  3. Look for alternative funding.
    Even if you can not get the entire amount you need from alternative funding, you should try to get as much as you can. Sell some things on eBay, have a garage sale, ask friends for help or ask your bass for an advance on your paycheck.
  4. Borrow only what you need.
    When you are ready to get your loan, borrow only what you need and no more. It might mean that you will be eating Ramen noodles for a week but so be it. You will be glad you borrowed the minimum when it comes time to repay.
  5. Pay back your loan on time.
    The last thing that you want to do is refinance or extend your loan. The fees will eat you alive. If you do find yourself doing this, at least pay back a portion of the principal to make it easier on yourself next payday.

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