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Tips For First Time Borrowers


May 18, 2017 ( Newswire) Borrowing money can be scary, but when it comes to your first time securing a loan it can feel like you're about to jump out of an airplane without a parachute. If you feel like your heart is about to burst out of chest take a deep breath and try to remain calm. No one's denying it's a challenging and stressful situation, but you can ease the burden you feel by borrowing responsibly. Don't know what the means? Keep reading to find out how you can make the smart choice regarding your very first payday loan.

Know Your Limit & Stay Within It

You'll be responsible for more than just the principal of your cash advance. When you borrow money you'll also have to cover interest, fees, and other incidentals. Take these into account when you evaluate a loan against your budget. Your contract should clearly outline these additional fees, but you can always use a loan calculator like this one to confirm. Is the sum total of these charges something you can reasonably pay back by its due date? If you aren't sure then that particular lender or financial product might not be for you.

Watch Out For Predatory Language

The terms and conditions of your loan should be laid out in basic, clear language. Consider it a warning sign if a lender uses flowery or overly complex language. This is often a tactic employed by lenders to conceal hidden fees or conditions that could diminish your chances of repaying the loan on time. You should also have access to representatives who can clarify any obscure term or meaning you aren't sure of. Don't hesitate to compare their answers with friends, family, Internet searches, and other lenders.

Retain All Paperwork & Correspondence

Emails, bills, letters, contracts, and even the notes you take during any phone calls should be kept until you've repaid your small dollar loan in full. These documents contain important information regarding the rates, terms, and conditions of your assistance. They will outline when your payments are due and provide a contact number if you encounter any problems. Arrange a physical folder for any paper you collect, but know that some companies, among them a payday loans direct lender like MoneyKey, complete most of their business online. Flag their emails to arrive at a special folder within your inbox and save any PDFs or attachments on your desktop so you have easy access to this information.

Read Terms & Conditions

We live in a world where ToCs are ignored. Most Americans think nothing of the online agreements regarding the use of their cookies or personal information when they visit a site or use an app, but your loan deserves a higher level discretion. Take the time to read every word of your contract, so you understand your lender's and your own responsibilities. 

Keep these steps in mind to relieve some of the stress you feel about taking out your first loan. Equipping yourself with knowledge is like making sure you have a working parachute before you jump out of that plane. You're probably still very nervous, but these steps make sure you arrive on the other side of your repayment in one piece.


Jennifer Maller

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