Low Interest Payday Loans Theres No Such Thing

Low Interest Payday Loans Theres No Such Thing



Low Interest Payday Loans: There’s No Such Thing
Are you​ looking for low interest payday loans? If so,​ you​ will probably be looking for a​ long time because payday loans are notorious for their outrageous interest rates .​
Payday loans were created to​ fill the​ need for emergency cash and people in​ that situation often can’t afford to​ be concerned with the​ interest rates on​ the​ loan .​
They are in​ need of​ the​ money,​ no matter how much it​ will cost to​ repay it.
As you​ can imagine,​ since there is​ really no such thing as​ low interest payday loans,​ people often get into a​ financial mess by taking out payday loans .​
The payday loan has to​ be repaid in​ full in​ a​ very short amount of​ time,​ usually two to​ four weeks .​
And since these are not low interest payday loans,​ there is​ an​ additional fee tacked on​ of​ around 10%.
Payday loans work like this; you​ provide the​ proof to​ the​ payday loan company of​ your identification,​ banking information,​ and employment history and then the​ payday loan company will determine how much money you​ can borrow .​
The amount will vary depending upon your income and could be anywhere from $50 to​ $1000.
The reason people are attracted to​ these types of​ payday loans is​ because there is​ no credit check and they get the​ cash money in​ just a​ matter of​ minutes .​
The problem with the​ payday loan is​ that it​ must be paid back in​ full,​ plus interest,​ on​ the​ date of​ your next payday,​ and since these are not low interest pay day loans,​ the​ fees add up alarmingly fast.
That is​ very difficult for someone who is​ in​ financial distress so what happens to​ a​ lot of​ people is​ that when payday comes and they pay back the​ loan,​ they don’t have any money left over so they have to​ take out another payday loan and it​ creates a​ vicious cycle that is​ hard to​ break out of .​
This happens in​ part because these are not low interest payday loans.
Legally,​ a​ payday loan cannot be renewed; it​ has to​ be paid off and then can be taken out again in​ 24 hours .​
But by taking it​ out again in​ 24 hours which many people are forced to​ do,​ it​ makes the​ interest on​ the​ loan skyrocket.
Remember,​ these are not low interest payday loans .​
For example if​ you​ were to​ borrow $300,​ you​ may have to​ pay back $335 in​ two weeks .​
If that leaves you​ broke and you​ have to​ take out the​ loan again,​ you​ will pay back another $335 in​ two more weeks .​
So in​ the​ span of​ a​ month,​ you​ will have paid out $70 in​ interest on​ a​ $300 loan .​
That is​ an​ extra $70 taken from you​ that you​ couldn’t spare in​ the​ first place so the​ chances of​ you​ ever being able to​ escape the​ clutches of​ the​ payday loan cycle get slimmer as​ time goes by.
In essence,​ you​ wind up paying $70 per month for the​ privilege of​ borrowing that initial $300,​ until you​ are able to​ pay it​ off and walk away from the​ payday loan place for good.
For some people,​ payday loans can be a​ lifesaver,​ but only if​ they will be able to​ pay it​ off and still have money left over on​ payday .​
Since these are not low interest payday loans,​ for those in​ a​ serious financial bind,​ taking out a​ payday loan can leave them much worse off.




Related Articles:




Powered by Blogger.