Sunday, December 10, 2017

Several Reasons to Avoid Payday Loans

When it comes to money, most people might not think rationally. They only think the best way to get the money they need without waiting for too long. It could be for the hospital costs, getting married, moving a house, and many more. If such matters happen to you, won’t you make the same move? I bet you will and you will not even care about the interest rate, the trusted lender, or whatever. Payday loans might be your best solving problem if such cases might happen to you. As a matter of fact, there are several reasons to avoid payday loans that you need to know before you decide by yourself. 

Truth about Reasons to Avoid Payday Loans 

Why avoiding payday loans? It has been proven that it brings out some benefits in good way especially when providing the money in less than an hour. However, there are some reasons to avoid payday loans that make you think of another way to earn money. 

First, the interest rate of payday loan is incredibly high. Payday loan indeed provides you the money in less than an hour; in fact the interest rate is very high. Imagine that you want to borrow $100 then the interest rate would be $15 for ten days. When you want to calculate the annual percentage, it turns out to be 400%. Isn’t it a very high number to be called as interest?

Second, if you are having a hard time related to money payday loan might be one of a help. However, once you deal with it you will be stuck in the same cycle over and over again. In some cases, people pay their loan off just to pay their previous payday loan. It is because the higher interest rate keeps on growing up and up. Most loans have to be paid under fortnight but in some cases it could be over 6 months. Logically, we borrow the money from loan then when we get our salary we can pay it off. The fact is that the high interest really kills you thus your own salary itself is not enough to pay it off. You will even live with your debt of loans in time. 

Believe it or not, sometimes when you get something too easy there is something off about it. I mean, how am I supposed to do to get a large sum of money? Should I sell my car or anything? No, payday loan will help you in less than 1 hour and you do not need to put something as collateral. Is it normal that someone or some parties are going to help you without anything? That is why you have to think carefully and make sure that you are able to pay the interest rate on time or else you are going to bury yourself in the same hole of payday loan. 

These are some of the reasons to avoid payday loans that you have to think deeply and carefully in order to come to the end of your financial issues.

4 comments:

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  4. Really I agree with you, The interest rate of the Payday Loans are very high in the comparison of other loans. I liked your way to express your views in this article. If anyone looking for the Short Term Property Loans, Visit basicfinance.com.au

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