Payday Loans

Obtaining Payday Loans Is Easy And Fast; Falling Into Payday Loan Debts Is Much Easier And Faster

With so many local payday loan stories and online payday loan companies out there in the market and with such easy eligibility requirements, it is definitely very easy and fast to obtain a short-term payday cash advance. But, at the same time, it is also very important for you to understand that falling into payday loan debts is much easier and faster; blame it to the extremely high interest and other finance charges that lenders charge on these loans. Just a $300 of cash advance borrowed for a very small period of 14 days can cost you over $500; this is obviously something we cannot call reasonable or justifiable. Therefore, if you are considering borrowing this easy and fast loan to meet your urgent financial requirements, you must think twice. Always remember, once you fall into payday debts, it just goes deeper and deeper with every passing month, and very soon the debts start looking like a monster which brings you closer to financial nightmares, including bankruptcy.

Are There No Laws On How Much Interest Payday Lenders Can Charge?

Well, there are definitely laws to restrict the maximum amount of interest and finance charges that payday loan companies can charge, but these laws vary significantly from one state to another. To begin with, there are states like Georgia that have completely banned all sorts of payday lending. If you are residing in a state where payday loans are illegal and you have still been issued a payday cash advance from a local or Internet based lender, it clearly means that you are trapped in scam. Those lenders are illegal and unscrupulous ones; you are strongly recommended to file official complaints against them. However, it is important to note that even if the lenders are illegal and unscrupulous ones, you may still be required to repay at least the

principal amount of money that you initially borrowed (without interest or other charges).

On the other hand, the states where payday lending is still legal, there are laws on how much maximum interest and other fees can be charged to payday loan borrowers. It is very important for you to keep in mind that it is not just the high interest rates that suck you financially; even additional finance charges are very high. In fact, there are many states where the maximum interest limit is very low, but there is no limit on how much additional; finance charges can be charged by the lenders. Therefore, you are strongly recommended to do your analysis thoroughly before you sign up for any such loan program.

The provision for automatic rollovers is another reason why falling into payday loan debts is so easy and fast. When you miss the due date, lenders usually extended the due date for thirty days, which looks like a convenience but it is in reality a very scary thing because you are charged additional interest rate for that extended one month at the same high rate (which usually ranges from 200% per annum to over 700% per annum).

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