Why You Should Steer Clear of Payday Lenders
If you’re thinking of going to any payday lenders, then you should think again.Using payday lenders is a bad idea because it will ultimately get you into more debt. It creates a situation where you end up owing the payday lender money. Have you ever been in a pinch and needed some money to get you through? Maybe you needed money until your next payday or you had an unexpected expense suddenly pop up and you didn’t have the money to cover it? Using payday lenders during these difficult financial times might have crossed your mind, however, it’s recommended that people steer clear of payday lenders as much as possible. Think about the following reasons and options listed below before getting a payday loan.
It’s not really in your best interest to get a payday loan and here’s why:
- Payday loans are very expensive. The interest rate and annual percentage rates are unbelievably high. Debt grows fast at such high rates. Soon you’ll find yourself in over your head.
- It will take you longer to pay off than you think. Really high rates mean you’re getting charged a lot for what little money you borrowed.
- There are other options available to use: peer to peer loans, banks, credit unions, borrowing from family/friends, or using a credit card.
- It could ruin your credit score. If you default on the payday loan or can’t pay it back you could end up hurting your credit, which could make it harder for you to borrow money in the future.
- Payday lenders rely on your bad financial choices. You can get stuck in a repeat cycle of borrowing one payday loan after another, and they’re betting that you will.
- Many payday loan companies require access to your bank account. They’ll take the money right out of your account. Plus, if you don’t have the money in your account you could get hit with overdraft fees from your bank.
Payday loans; just say no thanks!