This is the worst time of the year for a lot of people and the busiest time for payday lenders .
It’s Christmas time and a lot of people are short of money for Christmas so they turn to a payday loan so they can have a nice Christmas.
I understand why – but that’s a huge mistake – one that most people end up paying for over a long period of time.
What happens is people find that they can’t pay the loan back in full when it is due so now they have to re-new the loan over and over again trapping them into a cycle of debt until they can save enough money to pay the principle loan off.
Many borrows don’t realize it’s the high interest rates trapping them in this cycle of debt. All a borrow is focused on when getting a loan is getting the money. They don’t think of what’s going to happen after they signed their life away for this payday loan.
Did you know that on average and I’m talking about 2013 – the average percentage rate for a payday loan was (is) 339% and some percentage rates are over 1000%.
So Christmas has passes and now the reality of getting that payday loan is probably just starting to sink in.
The lender wants the loan to be paid off within 2 weeks. Where is the money going to come from to pay this loan off?
Unfortunately if you’re like most borrowers you just don’t have the extra cash to pay this loan off and you’re left with no choice but to re-new the loan for another 2 weeks.
But in my experience this is just delaying the problem – most people won’t have the money to pay the loan off in full in another 2 weeks.
And this is how the payday loan debt cycle starts. You see most lenders can only re-new a loan so many times and then you have to pay it off. But if you don’t have the money what do you do?
Well you go to another lender get a new loan and take that money to payoff the other loan. But now you have a new loan, one that is due in 2 weeks.
Can you see how you can get so easily trapped in payday loan debt?
Ok so now you’re trapped – how the hell do you get out of it?
Well it’s a lot easier then you think.
Watch this short video and see how easy it is for you to payoff all your payday loans and get out of payday loan debt forever.
Cheers,
Leo