Understanding the Repayment Options of the Quick Online Payday Loans in Delaware
With understanding, comes power and wisdom. If there is anything an individual should understand, it is any and all financial borrowing and repayment arrangements from any financial institution. The quip “Ignorance is bliss” really should be struck from the vocabulary of everyone.
Quick online payday loans in Delaware are safe and helpful when understood. When the borrower gets the mindset that the payday loan money has just multiplied his income for the month, there is a problem. When the payday loan is extended past the original 14-day payback, additional financing fees and interest apply.
Seven to 14-day Repayment Option
When an individual goes to the quick online payday loans in Delaware, they will be asked how often they get paid. Based on that frequency, the repayment of the loan is set up. The financing fees and the interest are also set according to the amount of time the payday loan will be in the individual’s hand.
The financing fee is basically the charge made for the privilege of the borrower to have the money for seven to 14 days. Either the payday loan lender will do an automatic withdrawal on the borrower’s bank account on the day he receives an employer pay check or prior arrangement can be made to call in with a credit card payment.
Extending the Repayment Time Frame Option
The employer does a direct deposit into the employee’s bank account and now the balance of the loan, the financing fees and the interest are withdrawn by the online payday loan entity. One day before that employer pay checks lands in the borrower’s bank account, he realizes there is no way it is possible to repay all the loan money. A call is made to the payday loan customer service and a representative answers and says, “no problem, we can extend the repayment in three equal payments of this amount.”
The next question from the borrower should be, “so what you are saying is I can repay the exact amount in three payments, rather than one.” But the answer is no. The majority of the money being paid back in a weekly or bi-weekly payment is financing fees and interest. Therefore, it is vitally important for the borrower and the lender of quick online payday loans in Delaware to understand repayment options.