Payday Loans

How To Make The Best Use Of A Fast Payday Cash Advance?

A fast payday cash advance comes with a long list of very attractive features. That is the reason why these types of small, short-term loan programs have become very popular in the last few years. But now that there are countless pieces of news coming from all corners of the country that how the majority of payday loan borrowers are trapped into a vicious cycle of debt and that how many of them are even getting bankrupt, it is very important for you not to be tempted to borrow these loans just because they are easily available. The FTC (Federal Trade Commission) is not playing a fun game by warning consumers against the predatory nature of payday lending; I guess they are serious about it. However, if a vast majority of people are still borrowing quick payday loans to meet their urgent financial needs, it seems there must be some positive aspects of payday loans that the FTC and other consumer protection agencies tend to overlook. Let’s examine it.

Understanding The Difference Between ‘Features’ And ‘Benefits’

Before you go ahead and borrow a fast payday cash advance, first of all, you must understand the difference between ‘features’ and ‘benefits’. Some of the excellent features that payday loan companies are doing aggressive online and offline marketing about include very simple eligibility criteria (a regular income and a bank account), no credit checking, no faxing of documents, easy approval, instant access to the borrowed money and even no verification also. These companies never talk about the negative aspects of quick payday loans. Just go through the loan contract and you will see that these loans charge interest at a 3-digit APR that can range from 150% to 750% per annum. Besides that, several other fees are also charged additionally. Since the repayment period is extremely short and the cost of lending is extremely high, people often fail to repay the loan in time, which eventually traps them into a vicious cycle of debt.

As you can see, it is very much possible that something comes with attractive features but those features do not provide any actual benefit to you. The thing here is worse than that; the lucrative features here are just advertised to attract consumers and then to trap them into a nasty cycle of debt. The following analysis will show you a much better picture in this regard.

Can You Afford To Repay The High-Cost Payday Loans Within A Very Short Period Of Time?

When it comes to making a decision on whether borrowing a fast payday cash advance can be a beneficial choice for you, you must also do a thorough calculation and get a clear picture on whether you can practically afford to repay the loan within such a short period of time that usually ranges from one to three weeks. In order to get a better idea, you may like to play with some actual numbers. For example, most payday loans will require you to pay back somewhere between $140 and $160 (in some cases, even more) for every $100 of loan you borrow for a 14-day period. If you are borrowing $300 for 14 days, you must expect to pay back $420 to $480 on the next pay day that is just two weeks away.

In order to get a much better picture on whether a fast payday cash advance can be beneficial for you, you must also consider the consequences of not making timely repayment. In general, your lender will offer you an extension of thirty days (till your next pay day) in the repayment period, which again looks like a very attractive feature, but the hidden catch here is that you are charged interest at the same high rate for this extended period of time (the hefty penalty charges are additional). This way, if you are late by one month, your outstanding debt balance will quickly become somewhere around $700 to $900.

Is Payday Lending The Only Option That Promises You Quick Money?

The main reason why fast payday cash advance programs are so popular is because they are advertised as the ONLY way to get the much needed extra cash to meet your urgent financial requirements. Just because thousands of payday loan companies are doing aggressive marketing about their ‘easy’ short-term loan programs, it does not necessarily mean that we must believe them. The smart consumers always listen to everyone but make a final decision only after confirming the facts. You just have to use your common sense and you can easily come up with several better alternatives. But, since common sense is something that is usually very uncommon, most people fall prey to the trap set by payday lenders. Click to get a bible of information on cheaper, more affordable .

Overall, it should not be an exaggeration to say that a fast payday cash advance program comes with a wide array of very attractive and highly lucrative features, but these programs are not beneficial at all; in fact, all types of payday loans are very risky that are designed in a way to damage your financial situation. It is high time consumers must understand that payday loan companies make most of their money by getting their borrowers trapped in a nasty cycle of debt. Even if you are sure that you can make timely repayment, you have many cheaper, better alternatives to consider. In short, borrowing a payday loan is the worst financial decision a person can ever make.

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