Did you know that there are some tips to help us know if a loan is a consumer friendly and if it has protections? And here are some: First, the loan should not exceed 25 percent of your gross monthly income; this will reflect how much you can afford to repay. Then if the loan has more than this percentage, you should take caution. Second, qualify for one short term loan at one time because there are some lenders who places no limits on the number of loans you can take out, and keeping you indebted to them. Third, do not pay more than $15.50 in finance charges for every $100 borrowed. Fourth, the lender should allow you to have an interest-free repayment plan if you are already in debt for more than 45 days. Lastly, remember that a legitimate lender subscribes to a reporting service that enforces provisions of the Payday Loan Reform Act. Then you must ask if your lender does.
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