What is it about payday loans that people can’t resist? I know everyone likes money, but you like to stay out of debt, don’t you? Well payday loans will get you into debt before you can say “hibberty-jibbery”. Even bad credit payday loans can interrupt your finances far beyond any point of no return.
Payday advance loans get you up to $1000 within 24 hours. Ok. Got it. You like cash. But guess what. A week later you owe $600. How?
- Quick payday loans charge you a certain fee per dollar amount, usually $20 per $100 borrowed.
- For a $500 you will pay $20 X 5, or $100, meaning your repayment becomes $600.
Thats a $100 charge for a two week -max loan of only $500. How does that sound? Not so great, right? If you need money for rent you should look into long term loans, lines of credit from your bank that wont cost you nearly as much. The more spread out the loan the lower the interest rates. If you are always struggling to pay rent take out loans for your other expenses, such as school or your car. If you need money within 24 hours payday loans are the only option – which is why they can charge whatever they want and which is why people continue to use them as fast and effective sources of cash. There really aren’t any alternatives to get immediate money, and for every draw back of a payday advance one only has to look at that void they fill.
Why Are Payday Loans so Bad?
Payday loans are so bad because they are the start of a cycle. A normal customer who needs $500 will not have the $600 to pay it back. People are in need of financial assistance in the first place, and cannot afford to go deeper into debt for that assistance. They will be forced to take out another loan to cover the first one, and there is no saying how many payday loans they will take out in total, each time they doing it increasing their payment by a hundred dollars or more. However, do not underestimate the speed with which you can acquire no fax payday loans – getting the cash fast and worrying about it later just might be the way to go!
The deadly side of payday loans
Now you can see how payday loans are so deadly. They control your life and drive you into debt, and for a great example of what can happen one needs look no further than military payday loans. The entire military complex is suffering form the high numbers of personnel in debt default, and next to nothing is being done about it other than to punish the soldiers themselves. It is important to remember that everyone is out to make money, you will not find a company that will just plain help you and you are your only last line of defense. Online payday loans (ftc.gov) are no exception. Just because you find a company on the Internets doesn’t mean that it is reputable! A payday advance by any other name… is still a payday advance. Handle with care. Be mindful of what you are getting yourself into, or these payday loans companies will become a pack of wild money eating wolves.