This month, we are focusing on the pros and cons of PayDay Loans.   In this installment, we offer you questions to ask your Payday Lender before taking a loan.

How much will this payday loan cost me in the end?

Before you sign anything you need to ask your payday lender about repayment, fees and interest. This is because you’ll want to know how much this payday loan is actually going to cost you. You want to know exactly what you’ll be charged for each payment and you’ll also want to get it all in writing. This is where it can sometimes get tricky because if they don’t tell you upfront about the hidden fees, you may be hit with charges you really can’t afford.

What happens if I can’t pay the loan off on time?

Next find out exactly what the steps are in the event you miss one payment. You want to find out what the extra charges are that you will be hit with. Then ask what happens if you miss the deadline for all payments so you know how much additional money you will have to pay back. Some provinces will have a maximum cap on what they can charge, so be sure to confirm this in the event you live in a province or territory where there is no cap.

Can I cancel the loan or back out early?

If you have concerns after you take out a payday loan, you may have a grace period that will give you a day to cancel it (depending on what province you live in). Check out your province’s regulations in advance so you know all the facts ahead of time. Another great pointer that can help you is to read the reviews on the payday lender you’ve chosen. The horror stories that you find should help you decide that a payday loan isn’t something you want to deal with.