Payday Loans

Pay Advance Loans – Instant Cash At A High Price

Payday advance loans have been very popular, especially among those who have a very limited monthly income and so often have to struggle with their finances when an unexpected expense pops out of nowhere. In such cases, they look toward these short-term payday lending programs as an easy way to get instant cash so that they can conveniently meet their temporary financial emergencies. But, it is also important to note that this is the same consumer group that often ends up getting trap into a vicious cycle of debt. Many of them even go bankrupt. Therefore, despite the very fact that these easy loan programs come with an array of attractive features, you must also be well aware of the negative sides associated with the same. Following is a brief rundown on it.

You Have To Repay 1.5 Times Or More Of What You Borrow

Payday advance loans are small amount of loans that are issued for a very short period of time (just a couple of weeks). But, during such a short-period, you are charged an extremely high amount of interest; other finance charges are additional, which can again be a hefty sum of money. In general, for every $100 of loan that you borrow as short a period as fourteen days, you should expect to pay anywhere around $150 on the due date. Even if that sounds okay to you and you are willing to compromise just because these loans are providing you instant cash, there are still several other reasons that may force you to think twice before you sign up for these lending programs.

The Consequences Of Nonpayment

If due to any reason you fail to repay payday advance loans on the scheduled due date, you will be rewarded with high amount of penalty charges. Besides that, you will also be liable to pay additional interest for every single day of delay. It means if you are late by another two weeks, your overall outstanding balance can just become double or even more of what you initially borrow.

Overall, it is true that payday advance loans look very attractive because of the lucrative features, such as instant cash, fast approval, simple eligibility criteria, no credit checking, faxless process, and other such things. But, it is also true at the same time that these lending programs can turn out to be very risky.

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