People resort to payday loans or cash advance loans when they are out of cash and need to meet some emergency expenses. These loans are quite popular amongst the cash-strapped people. This is because payday loans can be secured quite easily.
However, payday loan lenders charge a high interest on these loans. Many a times, people can’t afford to pay off these high interest loans and get into debt problems. So, question arises as to whether or not these loans are financially helpful in the long run.
Have a look at the article to know whether or not payday loans really solve your financial problem in the long run.
Payday loan – How it offers financial help to you
Go through the following lines to know how payday loans can help you financially:
1. Easy to obtain: You can obtain payday loans quite easily. You can apply for a payday loan online. This implies that you can apply for a payday loan while working at your office and get the money within 24 hours. Once you fill out the online application form, the payday loan company will deposit the money in your account within 24 hours. You can use this money to pay a bill or the school fee of your daughter.
Many a times, lenders refuse to lend money to the consumers with poor credit. But this does not happen with payday loans. You can get instant cash from a payday loan company even with a poor credit score or a foreclosure on your credit report.
2. Complete privacy: You financial information is not revealed to any one. No one will even know that you have taken out a payday loan. You can just take out the loan (to pay an unexpected hospital bill) and repay it by the next payday.
3. No need to pay advance fee: You won’t have to pay any advance fee for a payday loan. This is obviously a great advantage for you. You won’t have to pay anything just to secure the loan.
Payday loan – How it may lead you to deep financial woes
Glance through the following lines to know how payday loans can lead you to financial problems:
1. Exorbitant rates: Some payday loan lenders charge extremely high interest rates on the loans. You can even be asked to pay around 500% interest rate on the loan. This can make it very difficult for you to repay the loan.
2. Hidden fees: Payday loans often come with hidden fees and charges. For instance, file charges and transferred fee. These fees can increase the outstanding balances substantially.
3. Scams: A lot of fraudulent or illegal payday loan companies operate in several states. These companies offer easy and instant cash to the people. Sometimes, they even deposit money in the accounts of people without their prior consent. Later, they call the people and demand for money. The scammers even threat people to take them to court.
If you do get into the vicious cycle of payday loan debt, then you can take advantage of debt relief programs. You can enroll into the payday loan debt settlement program to ditch your debts. You can approach a payday loan debt settlement company for this purpose. The representatives at the company will help you settle your debts comfortably.