Payday Loans Pull The Teeth Of The Loan Shark

Payday Loans Pull The Teeth Of The Loan Shark



Payday Loans Pull the​ Teeth Of the​ Loan Shark
The Loan Shark was a​ staple bad guy of​ the​ movies of​ the​ 1940's and 1950's .​
He was that shady guy with the​ nice clothes and fancy house that lived in​ the​ seedy side of​ town .​
And when you​ needed money fast,​ and the​ bank turned you​ down,​ there was only one other person who could help: the​ Loan Shark.
The Loan Shark was a​ criminal who made his money by preying on​ the​ poor .​
Perhaps they were out of​ work,​ about to​ be evicted,​ or​ needed the​ money for hospital bills .​
He would loan them money at​ astronomical interest rates and ridiculously short maturity dates.
The Loan Shark ran a​ tight business .​
When the​ loan was due,​ he would send his hired thugs to​ collect the​ principal as​ well as​ the​ huge interest payment .​
If the​ borrower could pay on​ time,​ all was well .​
If not,​ the​ thugs threatened and beat the​ hapless borrower,​ gave him a​ short extension on​ the​ loan,​ and increased the​ interest even higher.
Loan sharks operated in​ the​ real world also,​ and were often associated with organized crime .​
But a​ relatively new way of​ borrowing money fast has reduced the​ loan shark from a​ great white shark to​ a​ guppy .​
It's called a​ payday loan.
A payday loan is​ a​ loan you​ can get almost immediately .​
The maximum amount you​ can borrow is​ limited by law,​ and your loan collateral is​ your next paycheck .​
In other words,​ the​ payday loan dealer will essentially give you​ a​ cash advance on​ your next paycheck almost immediately .​
In return,​ you​ agree to​ pay back the​ payday loan when you​ receive your next paycheck,​ plus interest.
This convenience is​ not without a​ price,​ however .​
Like the​ loan shark of​ old,​ the​ payday loan dealer can and does charge a​ much higher interest rate than a​ bank would charge .​
Unlike the​ loan shark,​ hired thugs aren't sent to​ collect the​ loan money if​ your payment is​ late .​
You sign a​ contract with the​ payday loan dealer,​ and the​ dealer can utilize the​ legal system to​ recoup his losses if​ necessary.
Many people are wary of​ payday loans .​
But if​ a​ credit card cash advance,​ savings account,​ or​ even a​ generous friend is​ not available during a​ financial emergency,​ a​ payday loan can provide the​ money you​ need .​
Payday loans can be particularly effective and helpful if​ you​ know the​ need for money is​ coming,​ and can plan ahead of​ time to​ repay the​ payday loan.
Do your research before signing a​ payday loan contract,​ but don't discount the​ payday loan as​ a​ legitimate financial resource.
You can begin your payday loan research at​ the​ site below.




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