- So what are payday loans? A payday loan is an easy to access loan that you can get if you have consistent income and a way to prove that you do.
- Payday loans are usually not large and may even extend to up to one thousand dollars.
- Payday loans however does have horribly high interest rates and poor terms. This is because they don’t require a credit check which is what makes it so easy and convenient to get. So this means they do not report to the credit bureaus. It doesn’t affect your credit in any way. It may be a little different if you don’t pay them back and it may show up on your credit but this is highly unlikely. The reason these loans are called payday loans are not because you have to pay it back on your pay day, which is why you have to verify your employer or income source. So many Americans use these loans and get caught up in the vicious cycle of paying it back only to get another payday loan probably in the same day of paying back the loan in the first place.
- It’s important to try to to get into payday loan debt and to look out for a payday loan scam while searching for a payday loan. One way to avoid this type of loan debt is. If you are actually going to get the payday loan then you should follow the terms and agreements and just pay it off on the due date. You can avoid a potent ion payday loan scam by doing research on the company that you plan on doing the payday loan with and also it’s a good idea to look at reviews.
- It’s more than likely a payday loan scam if you found the company on the internet and they don’t have a physical location. A payday loan scam can sound convenient and just as legit as a real company would but you have to understand that these scammers are highly skilled and know exactly what to say to get your information. Don’t be a victim to a payday loan scam.
Why Would Anyone Even Want A Payday Loan
Many people turn to payday loans for many different reasons. What are payday loans made for? Many Americans that have poor credit don’t think they have a chance at getting a loan if they were to try a a personal loan company or a bank. Some people believe a payday loan is their only way to achieve everything a loan and that’s certainly not true. There are different methods to obtaining loans other then payday loans but we will discuss this later. Payday loans are extremely popular and there are more then five million of Americans getting them everyday. First reason is because it’s one of the easiest ways to get some extra money, that’s doesn’t require a credit check. All you need to get a payday loan is your proof of residency, Proof of identification, until you receive your check but just because it’s easy means that it’s a good thing. The interest rates alone are enough to make you want to pull your hair out because the interest rate for a payday loan can get up to one thousand percent! It’s also been said that the interest rate is about ten times more then it would be for your average credit card. That’s really something to think about .This is practically stealing on so many levels and they have been getting away with it for so long and so many Americans are just falling into the trap of reviving easy money that they can quickly access. Let’s say you are having unexpected car trouble, or you ran out of food and you don’t have any money left from your paycheck, these are just a couple of reasons why one would turn to payday loans. The sad truth about getting a payday loan is that many people does not experience payday loan relief after starting payday loans because they are so addicted to being able to go back to get another one. When getting a payday loan you need to have the pure intention of paying it right back on your payday so that you can have the payday loan relief and be released from the high interest rates. Many states have even made getting payday loans illegal and this alone lets you know that payday loans may not be a good thing for you to get yourself into.
How To Get Help With Payday Loan Debt
Now that you have payday loan debt, there’s a way out and you can get some type of relief.
- There are options such as payday loan consolidation. Payday loan consolidation actually helps you combined all of your pay day loans and pay them off for a much cheaper price then you going at it alone.
- Getting a payday loan consolidation company to help you eliminate your payday loan debt will lift a ton of weights off of your shoulders as well as interest.
- There are many different ways that you can avoid payday loans and many alternatives that is much less stressful and expensive as a payday loan.
- You can save your own cash and be responsible by sacrificing. Instead of buying that take out, try using that money to save or meal prep which will allows you to start a savings and not have to even think about turning to a payday loan company.
The bottom line is that it may not be a good idea to get a payday loan. I know you may be in a crunch, your credit may not be the worst and you don’t think that you have other options but if you can absolutely help it try waiting it out. You may even be better off trying to borrow from a family member or a close friend.