One of the things that makes a payday loan so difficult to pay back at times is the interest that is charged. This interest rate tends to be a little larger then a normal loan and can really creep up on you if you are not paying attention. With that said, is it possible to get a payday lender to stop charging you interest on a payday loan? How would you go about asking?
The Interest Factor
When you apply for the payday loan you will generally get anywhere from $100-$500. This amount will need to be paid back on the next pay date. The trouble comes when people forget to factor in the interest. Payday loans fall around 15% interest. If you take a payday loan of $300, then you will need to pay back $345. People forget about that extra $45, and then when pay day comes then realize that they do not have enough money to pay off the complete loan.
Fifteen percent is a safe number to assume. Payday loans can charge as much as 30% interest, if not more! This is where the trouble really comes. You may take out $100; because that is the maximum amount you can pay. That is the trouble. Interest will push that payday loan past your "maximum" amount. Now, is it possible that you can actually get them to stop charging you interest on your payday loans?
Stop the Interest, Please!
Right off the bat we will tell you that there is no way you can get the payday loan company to stop charging you interest. If you find one, then please let us know! Your interest rate is how the company makes their money. If not, then you are just getting free money, and that is too good to be true. So you can ask them to stop the interest rates, but you will leave with an answer that you are not very please with.
What can you do? Well you need to make sure that you do not take out a loan that is more then you can pay. That way the interest is more manageable. Then you need to pay back right on time. This will stop any hike in the interest rate, which can be a lot, making the loan a lot harder to pay off. That is the main way you can stop the interest rate from killing your finances and turning your payday loan into a very bad thing. Pay attention to your loan, and pay that thing off on time!