You certainly have seen all of the ads on the internet for short-term payday loans. They are hard to miss and they are showing up on Facebook,on Twitter and on random websites you visit on a regular basis. If you have been thinking about looking into one of these loans but are uncertain as to whether or not this type of loan is for you, consider using a payday loan calculator to find out.
A loan calculator is simply an online tool that you can find very easily on the web. This tool allows you to find out exactly how much money you will have to pay back for the loan, including interest and any fees associated with the loan. The actual cost of any short term loan is typically determined by the lender setting a fee for every one hundred dollars borrowed. The entire loan must be paid in full, over a short time period – usually within two weeks.
To use a payday loan calculator, you just need to enter the amount you are in need of, the fee charged per $100, the term of the loan, and the number of possible loan renewals you might be expecting to need over a period of 12 months. The reason that the typical payday loan calculator asks about the number of renewals you expect in a year is because very few people obtain just one payday loan per year.
It is only logical to use a payday loan calculator because for one thing, this type of tool is absolutely free to use. Plus, it makes sense to know exactly how much you will end up having to pay back on a short term loan. You certainly do not want to default on this type of loan because if you do, you will face having to pay penalty fees which could put you in dire straights financially.
A payday loan calculator will give you the confidence to go ahead and borrow the money that you need. It is not a good idea to simply apply for a short term loan without giving it much thought. The approval rate is very high on this type of loan, but if you are not able to pay the loan back when you are supposed to, the financial consequences could indeed be devastating.