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This holiday season, many news stations and publications are cautioning Americans to steer clear of payday loans. Oftentimes, the press will depict this means to get money as detrimental and dangerous. By trying to warn people of the pitfalls of unwise spending, publicity skews payday loans into a monster that they are not. Wise borrowers are almost always satisfied with their loans.

In order to experience a safe and helpful short-term loan, you must calculate your payment plan. It is important to carefully consider how soon you will be able to pay back your loan in full. Customers should never procrastinate on a loan, regardless of the companies' policies on roll-overs and extensions. Waiting to repay a loan can result in accumulated interest, and some businesses also add fines and fees for rolling a loan. If you will not be able to repay your loan, it is best to avoid borrowing in the first place. Payday loans come with very high interest rates. These rates are relatively harmless when they only last for a few weeks, but the values escalate drastically when the debt has been left for a few months. After years, the payment will be overwhelming. To avoid this, make sure to only borrow 25 percent or less of your next paycheck. This will give you ample room to be assured that you can return your loan with interest.

It is important to remember the purpose of a payday loan. These loans are meant to get you from one payday to another without a financial disaster. They are not meant to perpetuate a need or finance a large-scale purpose. For longer and larger loans, you should contact a bank or credit union and discuss a serious loan settlement, Small amount loans are meant to provide $200-$2,000 and last a month at the most.