Why You Should Avoid Payday Loans?

[Yusra3]

Payday loans are unsecured, short-term loans that are typically due on your next payday. They are also sometimes called cash advances or check loans. Payday loans can be a very costly way to borrow money.

The cost of a payday loan depends on the fees charged by the lender and the length of time you need to borrow the money. The typical fee for a two-week payday loan is $15 per $100 borrowed, which translates into an annual percentage rate (APR) of almost 400 percent! In comparison, credit cards typically have an APR of around 15 percent.

The Risk of Payday Loans

Not only are payday loans expensive, but they also carry a high risk of default. This is because the loan amount is often much higher than what the borrower can afford to repay on their next payday. As a result, many borrowers end up renewing their payday loans multiple times, which further increases the fees they owe.

What's more, if you default on a payday loan, you may be subject to aggressive debt collection practices, including wage garnishment and seizure of assets. In some cases, borrowers have even been sued for not repaying their payday loans!

The Alternatives to Payday Loans

Fortunately, there are other options available for those who need financial assistance. Some alternatives to payday loans include:

1. Borrowing from friends or family members.

2. Using a credit card.

3. Getting a personal loan from a bank or credit union.

4. Finding other sources of financial assistance, such as government benefits or charities.

 

[Holicent]

Payday loans are available to those who have poor credit ratings. The reason why they are called payday loans is that they must be paid back on a specific date, usually within a month. These loans can be very expensive, and it is important to know how they work before taking one out.

Payday loans are short-term, high-interest loans that should not be used for any significant amount of time. They are meant to cover the costs of paying bills and other debts during times when the usual sources of income like your job or salary may not be able to cover these costs.

These days, many people use payday loans because they believe they will be able to pay them back quickly and easily. However, this is not always true because there are many hidden fees associated with these types of loans and many people do not realize that until after they have taken out the loan itself.

The best way to avoid getting into trouble with payday lenders is by learning about all of their fees before signing up for their services so that you can make an informed decision about whether or not it makes sense for you to take out a loan from them in the first place.

 

[Kennysplash]

I was listening to someone's experience of payday loans and I could not help it but just open my mouth wide. It is pure extortion, they figure out people need the money swiftly so they take that advantage to rip off poor and innocent people. I will never advise anyone to even think of applying for that loan. Like you said there are alternatives, like meeting some of your family members for help or even visiting your bank. Or better still try to save up for tough days like that. If you make it your aim to save a small percentage of your income evey month just in case of emergency you will not have to resort to that kind of horrible loan.
Even after you use it for whatever you want, you will realize that it never really helped you. Explore other options first, do not do what will not pay you.