One of the most important things to remember when considering payday loans Nova Scotia is that these loans must be repaid in a timely fashion in order to avoid the high costs of interest payments. The interest rates on payday loans are extremely high when compared to traditional loans; so high, in fact, that if not repaid on time, the interest rate could easily surpass the original amount of the loan. This can create a worse financial issue for the borrower than the original one that made him or her originally ask to borrow.
Many payday loans Nova Scotia have repayment periods of up to thirty days. This time frame will depend on terms that the borrower has negotiated with his or her lender. At the time of loan disbursal, the payment schedule and the way in which the loan will be repaid will be arranged. Normally the borrower agrees to pay the loan in full in cash either on or before the date it is due. Some lenders choose to have the borrower submit a post dated check in order to claim repayment in that way.
Sometimes, it is impossible for a borrower to repay the payday loans Nova Scotia on the due date. In this case, the payday loans store will normally agree to roll the loan into a subsequent pay period for the individual; however, this will cause the amount of the interest rate to double, and the original interest that has been accumulated will be capitalized and become part of the principal loan amount, meaning that the new interest rate will be calculated on the new principal balance. This can get many individuals into financial turmoil if they are not careful.
Before applying for a payday loan Nova Scotia, an individual should know the requirements that are expected in order to gain approval. Normally the only major requirement is that the individual be gainfully employed. This employment is the security which this type of lender requires. The individual does not have to have good credit; in fact, credit is not even a factor in applying for payday loans Nova Scotia.
The application and approval process is actually quite simple. After applying, if the individual is approved, he or she will sign documentation that is a promise to repay the loan. It is important to read over the terms, including the fine print, to ensure that one will not be ensnared in a web of fees. If the individual can be responsible, payday loans Nova Scotia is a great way to fund a financial emergency.