MoneyLend.net issues tips on what you need to know before taking a personal payday loan

SEATTLE - Aug. 5, 2015 - PRLog -- Payday loans offering high interest and fees are often seen as a last resort, and to avoid getting caught in a debt trap, MoneyLend.net, a new top tier search engine for personal, peer-to-peer and payday loans, has issued guidelines for consumers considering this method of finance.

1. Consider the "debt trap" aspect ahead of time. Payday lenders are quick to offer extensions, but at a steep cost – to the point where you may wind up paying more in fees than the amount of the original loan. Payday lending can be useful if used as a short-term method to cover emergency expenses, and the high fees are often more than offset by the costs one would otherwise incur from bank fees from bounced checks. Take the payday loan to cover short-term emergencies – but avoid extending the loan.

2. Don't assume there are no alternatives. Consumers with poor credit may be too quick to take the payday loan before doing research, under the belief that they would never qualify for anything else. But it doesn't hurt to ask – before taking the payday loan, pay a visit to your local bank, finance company, or pawn shop to see if a personal loan is a possibility, or even pay a visit to your Aunt Pearl (and bring some of her favorite cookies). Only apply for the payday loan if there really are no other options.

3. Is that emergency really an emergency? Keep the payday loan option as a tool for true emergencies. And even if you do feel as though you are in a bind, try to work it out before going down the payday loan path. If you have a bill due, have a talk with the creditor first – the late payment they might otherwise assess may be substantially less than the payday loan fees. Alternately, a brief phone call with the creditor may well yield an extension or repayment agreement that may be more favorable than the payday loan.

4. Not all payday lenders are the same. Don't automatically resort to the payday lender that's most convenient. Even though it is a highly regulated industry, fees still vary a great deal between lenders. Take time to compare terms from different payday lenders, both online and at the storefront lenders in your city.

Although MoneyLend.net advises caution when it comes to payday loans, there are circumstances in which they may help avoid serious emergency situations. According to a report from the Federal Reserve Bank of New York, in states that have banned payday loans, consumers bounced 1.2 million more checks per year after the ban (usually at a returned check fee of about $30 per item), and Chapter 7 filings increased 8.5 percent after the ban.

About MoneyLend.net
MoneyLend.net is a free online portal for finding and comparing personal, peer-to-peer, and payday loans from multiple sources. For more information, please visit http://www.moneylend.net.