Well here’s a big surprise a case study at Credit.com confirms that Payday Loans are a better option than Late Fees, Disconnection Fees, Overdraft or Overdraft Protections Fees.
This is ONLY true if the person that is taking out the payday loan can pay back the loan in full by their next paycheck.
But guess what?
Most people cannot afford to payback the loan in full by their next paycheck, because they still have their monthly bills to pay but now they also have an interest heavy payday loan they have to pay.
So where is the money for the monthly bills and other monthly expenses if they have to pay the payday loan in full on their next paycheck? Which more often then not will take their entire paycheck to pay off.
But you see the lenders really don’t mind if you can’t pay the loan in full. This way they can squeeze more money out of your by offering the option of rolling the loan over.
Which simply means they give you a 2 week extension – but that comes with a price – a fee plus the interest charge of the original loan. But don’t forget you still have to pay the original loan and fee and interest charge in 2 weeks.
And this is where the payday loan trap starts. Many payday lenders can only offer a few extensions, then you have no choice but to pay the loan in full.
Well if you don’t have the money to do that what do you do?
Most people unfortunately will go to another lender to get the money to pay off the first loan. And now you’re caught in the payday loan trap which is very, very hard to get out of if you don’t find the extra cash to pay off your loan(s)
Before you get caught in the payday loan trap there are other option:
1) Borrow from a friend
2) Borrow from a family member
3) Talk to your employer – maybe they can give you an advance or get overtime
4) Sell or pawn something
5) Use your overdraft if you have it
There is always a better way then a payday loan!!
Do You Need Help?
If you’re trapped in payday loan debt please give us a call 1-877-280-5100. We can start getting you out of your payday loan debt is as little as 2 hours. The call is free and the consultation is free.