Stay away from payday loans
A pay day loan is a quick cash advance that carries a huge burden later. These types of loans come with interests as high as 400% to 700%. To qualify one has to give employment and banking information to ensure payment. The loan is typically for a two week period and taken by debit from the borrower’s checking account. These businesses gross billions of dollars a year and are growing. Thankfully enough the government has noticed that this is not satisfactory to one financial health and starting to set some limits to the madness. Some states have outlawed payday loans and most debt consolidation companies won’t work with them.
Over and over people still continue to apply for payday loans. Do they not read the fine print or simply don’t care? Pay day loans are the single most ridiculous type of credit card consolidation loan that anyone can apply for. It is bewildering that someone will take out a $500.00 loan and pay three times as much back. Unless it is an absolute extreme emergency consumers need to stay far away from these establishments. It is actually cheaper to pull a line of credit from ones credit card then to get a payday loan.Interests on these loans are designed to roll over into a never ending circle of payment. Most people take out more loans to pay off their current ones. It is almost impossible to pay back these loans in a timely manner. If one has secured anything to the loan this could become a very big problem.
Borrowing on payday loans
Negotiations are in play when it comes to securing payday loans and securing one assets to the loan. Borrowing is usually limited to anywhere from $500.00 to $1000.00 per loan making this a serious issue. Why would anyone receive a $500.00 to $1000.00 loan and tie it to their car or home. What if something happens and the loan cannot be repaid? This is not worth losing one home, car or other assets. It is absolutely understandable that one may have an emergency situation, but look at other options first. Turn to family and friends maybe they will be able to assist you for a while until you can get back on your feet. Before doing a payday loan try your personal bank. The money is small enough that they just give it to you or you can borrow against your credit card.
Internet payday lending should be avoided period. The information that is needed to receive or qualify for these loans is very personal. It is not wise to give all of this personal information via internet. Anyone can access this and steal your identity or use it in a way that can harm one personal finances severely. Internet payday loans are under scrutiny as well with the government. Not all of the terms of the loans are made to these borrowers which should not be allowed. All borrowers should be able to read and understand every bit of what these loans offer. Be smart and investigate what these loans actually mean and how it will impact you in the end.