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Repay Payday Loan on Budget

Here is a way to borrow and repay a payday cash advance loan on a tight budget. First you should research your lenders and find one that will loan the amount you need and has the lowest finance charges and no hidden fees. You should be able to find a lender that charges a finance fee of about $10 per $100 borrowed. This or something close is what you want.

And last but not least the lender should offer extensions. The extension is not absolutely necessary but will serve as a safety net should you find yourself in trouble. I will explain more about this later.

Here is how this system works. For example we will use a $300 payday loan amount. So you apply for and are approved for the $300 cash advance and the full amount is due on your next payday which in this example will be one week. Your budget allows for you to spend $50 per week to repay your loan using this system and the finance charge is $10 per $100 for this example as well.

So now its one week later and the payday loan amount is due. You owe $300 for the loan amount and another $30 for finance charges for a total of $330. So since your budget is $50 then the following is the transaction you will make.

You will pay the $330 in full and then you take the $50 budget and subtract it from this amount so $330 minus $50 equals $280. So now as soon as you pay the $330 in full you will immediately borrow $280 and leave with the cash in hand. This way you have satisfied the loan, spent your $50 budget to repay and carried over a balance of $280.

Now it’s your next payday and your cash advance is due again. This time you pay the $280 then subtract your budget of $50 and then borrow $230. Then the next week you will pay $230 and subtract $50 and borrow $180. So do you see how this works now?

Some lenders will not loan an amount less than $50 so in this example when you get down to owing $80 you can choose to only pay the $30 and borrow $50 for the last time which would still leave you owing $60 for your last payment or you can just pay the entire $80 and save that final $10 finance fee. Either way, you can pay off almost any loan amount this way as long as your paycheck will cover the full amount.

This brings us to the extension we talked about earlier. In the event that you can not repay the full amount due then you can fall back on the extension as a safety net. By simply paying the finance charge you can have the full amount extended until your next payday providing you with a safety feature.