Payday loans come with fees and interest charges, but there are ways to keep these costs from being higher than they have to be. If you need quick cash and intend to get a payday loan, use these tips to keep the associated costs as low as possible.

Borrow the Lowest Amount

Any loan's interest charges directly correlate to the amount borrowed, for interest is assessed on the entire outstanding balance. The amount saved is proportionately greater when using a short-term loan that typically has a somewhat higher interest rate, such as a payday loan.

For example, if you have a $100 loan that has a 12% APR (1% per month), your monthly interest charge would be $1. If that loan is for $300 and has the same APR, the monthly interest charge would be $3. A difference of $2 per month might seem small, but that's a tripling of how much you pay in interest. The less you borrow, the less you'll pay in interest.

Certainly don't borrow any more money than you actually need, and try to reduce how much you need to borrow. You might be able to reduce the amount needed if you:

• Use some non-retirement savings to help cover the costs that you're faced with
• Ask for an installment plan on a bill that's due
• Delay nonessential expenses, so you have fewer total costs right now

Sometimes accessing savings or setting up an installment plan can take time. Don't wait until the last minute to try these methods, but begin exploring these options as soon as you know you'll have to use a payday loan.

Carefully Consider Your Vehicle as Collateral

Many payday lenders will accept a car title as collateral on a payday loan, and they sometimes offer a lower interest rate in return for putting up some collateral. Any collateral used to secure a loan could be seized if you don't repay, though.

Carefully consider how confident you are that you'll be able to pay off the payday loan on time. If you're certain that you can, you may want to use your vehicle as collateral in order to secure a lower interest rate. Only do this if you're certain that you'll be able to pay off the loan, however.

Pay Off the Loan Early

If you come into an unexpected windfall shortly after taking out a payday loan, use the unexpected funds to pay off the loan early. You'll reduce how much interest you pay, and you might also avoid some fees.