How to Be a Good Payday Loan Borrower

by: Ignacio Morales

While there are some shady lenders out there, the responsibility really lies with the borrower. You don't blame your credit card company for charging exorbitant fees for late payments or when you're over the limit, do you? You know that is your fault.

So it is about time that payday borrowers take accountability for their own borrowing habits. The truth is most people are not smart with their money. And you have been one of those people before, and then you know the risk of taking another loan, or buying more things with credit.

The payday loan industry has offered people a way to get quick bursts of money for unexpected circumstances. Rarely do you see payday lenders advertising that people get loans every month for groceries, or to get loans for things that aren't essential to your survival. Sometimes they will advertise that their loans are good for Christmas, but Christmas comes once a year and most people can easily use the small amount that payday lenders give, to make their holiday better.

A good lender doesn't want to encourage you to spend money you don't have, pay thousands more in interest than what you borrowed, to risk losing your assets. A good lender wants repeat business. Even if that means you only get one or two loans from them per year.

Banks don't deal in small cash as frequently in regards to loans. They do work with smaller loans but most have a minimum that they will even process for you. If you can't find someone to loan you $200 for car repairs, then a payday lender is a great option in this situation.

So, although there are thousands of people who circle in the whirlpool of debt they have created for themselves, they did not go there under duress. We can look at the situation this way perhaps, picture a hungry child in a candy store.

The candy is there, it is within reach, it is easy to get and he has an urgent physiological need for edible substances. Do you imagine that it would be a challenge for that child to restrain himself with the tasty food and just eat enough to curb his hunger?

The chances are likely that a tummy ache will ensue. Children learn self control, personal restraint and how to delay gratification when they are little.

The ease of money when we need it, or want it, applies the exact same way. Our whole society, and most of the world, revolves around convenience, satisfaction and getting what we want when we want it. And in turn, most of our choices are hurting our bodies, our finances, hurting others and our planet.

If you need a loan, make smart decisions with what lender you choose. Know what you are getting into and most of all help spread the word that this industry is not intentionally causing harm.

The following list will help educate you in what to expect with a payday loan.

1. Ask what payback schedules you have.

2. Know how much more you are paying in fees and interest than what you actually need. For instance, if you need $200, know how much more is being borrowed to pay for this service.

3. Know your payback schedule and don't default! Otherwise, all those fees and interest rates will change and you may not know how it got so out of control.

4. Read your contract.

5. Have a good plan on how to pay it back and when. Don't just borrow with the knowledge that your friend will pay you back the money he owes you. It is best not to wait on others that you casually know, to get you the money. Plan on working extra hours at work. Know when your money usually comes from Social Security or Child Recovery Services or an employer.

6. Find a lender in you country, do not borrow overseas.

7. Whatever state the lender is in that you choose, take 10 minutes and research the specific payday lending laws.

8. Ask what the fees and interest rates are.