A mid-sized city located in the Covington County of Alabama is Andalusia. With a population of less than ten thousand as per a census a few years ago the city was originally called “New Site” for a few years before getting the official name as Andalusia. The city is considered as a family-friendly city and has a few historic places like Avant House, The Three Notch Museum, Covington County Courthouse and jail, and First National Bank Building.
Payday loans in Andalusia AL
The city does not have many people under the poverty line. That being said even people above the poverty line can find them self in sudden financial crises with no one to answer their prayers. Gone are the days when you had to go begging to your family and be embarrassed for saving for difficult times. These days’ markets have given us a friend. A friend that is indeed a friend in need. This friend is a payday loan or an installment loan.
A payday loan is a loan that you take from a special lender and payback on your payday. These loans have three main aspects involved with them:
- Principle amount: the amount you want to borrow. Although you may want to borrow any amount of money, the amount which any of these lenders will allow you to borrow is usually decided by a few things. One of these is the state regulations. Almost all the states that have given legal status to these loans have placed a maximum limit on the amount which can be lent. Another factor is your monthly income. While applying payday loans Alabama lender will ask you to supply your current employment information. This is to calculate the amount they can lend to you. Usually, lenders will give out a percentage of your salary to ensure that you can return what you are borrowing.
- Tenure: unlike the traditional bank loans these loans do not go on for years. By definition, they are given for two to four weeks. Many lenders do offer an installment offer where you can pay back what you have borrowed in a few months.
- Rate of Interest: this is one of the most important aspects of these bad credit loans. The rate on these loans is very high. This is explainable as they lend less amount for a short duration and hence charge more. If a customer borrows and does not payback on time the yearly interest on a loan can go to a thousand times to what you have borrowed. Apart from interest, there are other onetime charges collected from the customer. These can be servicing charges, bank handling charges, and court-related charges.
All these things are important and are regulated by Alabama state. These regulations are put in place to ensure the safety of the customer and the lender.
While planning to take such a loan there are few things you should take care of:
- Research well for a good lender, asking for reviews from friends or even checking out reviews online is a good idea.
- Borrow what you can return. It is very easy to get carried away and borrow an amount which you may not be able to pay back on time.
- Do not make this a habit: when living in financial difficulty it is easy to get pulled in a vicious cycle of taking loans to run your day to day life. Though these loans are a great way to save the day in an emergency, however, it should not be misused.
With this information, if a situation like this does come you will be ready to understand where to start and find a lender to suit your needs.