Long Term Payday Loans

Long Term Payday LoansIf you’re looking for long term payday loans, you’ve probably realized that there aren’t too many to be found. Technically a payday loan is due on your next payday, or it isn’t considered a payday loan any more. There are online loans that can break up your payments over time, but these typically aren’t linked to your payday.

The reason payday lenders make so much money is that they get their money back just a few weeks later, plus a hefty fee. They make their money by loaning out that same money again and again to the same borrower, many times collecting over a hundred dollars in fees each month from just one person. If they changed their loan conditions and let the borrower use the money for the long term they’d take a serious hit to their bottom line.

Part of the payday reform that needs to happen is to give people more time to pay back the loan. Even doubling the time of the loan and allowing people two paydays to pay it back instead of one would do wonders, and help most borrowers avoid the dreaded payday loan trap.

Do Long Term Payday Loans Exist?

So as you can see there aren’t any long term payday loans that don’t need to be paid back quickly, because by their very nature they are short term loans intended to help with immediate emergencies. But there are other loans that can be broken up into installments so that you don’t have to come up with the full amount of the loan all at once on your next payday.

Online Loan Options
Some people turn to online loans as a way to get a larger amount of money for a longer period of time. With these loans you really want to check out the conditions and know what you’re getting into. For example there are online loans out there that might give you $2500, but then charge you $250 a month until the loan is paid off. At first glance this might seem like a good deal, and you’d have the loan paid off in 10 months, but the $250 is just a fee, and doesn’t go towards the balance. It’s a fee you continue to pay until the balance is paid off separately.

Of course this is just an example, and there are all sorts of online loans with different terms and conditions. Just do your due diligence and only take out the amount of money you absolutely need in order to fix whatever financial jam you’re in.

Long Term Payday Loan Strategy
One way to successfully use payday loans for the long term is to take out what you need to solve the problem in the moment, and then gradually wean yourself off of the loans with each payday. Say you take out $600 to get your car fixed. It will likely be pretty tough to pay back the entire $600 plus the fee of let’s say $75. But instead of immediately re-loaning the $600, try taking out just $550. It may not seem like a big deal, but that’s the point. You won’t notice that you have $50 less, but you’ll pay less in fees on your next payday.

If you continue this process over the coming months, you can eventually get your loan amount down to $100 or $200 and then go cold turkey. That way you’ve minimized the fees that you’ve had to pay during this time, and you got the money when you needed it. You also didn’t have to suffer too much along the way, because if you stick to $50 increments it doesn’t really effect your quality of life. That’s why it’s a good idea to find a payday lender that offers $50 increments instead of $100 increments.

Preventing Future Loan Needs
Once you get out of the mess you’re in, make it a priority to set aside a little each month to avoid this kind of situation in the future. Even putting $50 a month in an emergency savings account can be a big help for minor things that come up, and can reduce the amount of money you need to borrow if a bigger crisis comes along. It’s not about saving a huge amount of money, because that can seem daunting. It’s about squirreling some away for a rainy day, no matter what the amount so you don’t have to search for long term payday loans again.

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