I have seen so many people get stuck in so many bad situations when taking out payday loans. Let talk today about how to escape an online payday loan trap.
What it it?
If you have ever taken out an online payday loan you know what I am talking about. Unless you paid it back in full on the first due date, you probably ended up in the trap yourself. What I call the trap is when you take out a payday loan and you agree to the terms of the online company and let them debit your bank account for their payments.
What is wrong with that?
Most people are in such a hurry, and know they could have their money in their bank account within 24 hours, that they do not pay attention to the terms, and when a company is charging up to 400% APR you must pay attention.
Most online companies will charge an extremely high rate to borrow the money, and it will be a recurring payday charge unless you specify otherwise with a phone call within 3 days of the due date.
Did I lose you?
Thought so, and the loan companies are counting on you getting lost too, in a very big way.Lets take a closer look to see why.
- A 2 week payday loan of $500.00 Interest on this loan for the 2 weeks: $150.00 Total loan payoff on your next payday $650.00
That is a pretty stiff charge to borrow $500.00 for two weeks, but so be it. So, you assume your loan will be paid off on your next payday, and you will be $650.00 poorer, right? Wrong!
Unless you call this company and state what you want your payment to be on your next payday, and you must call 3 days in advance, all that will be coming out of your bank will be $150.00. Your balance will still be $500.00, and a new charge of $150.00 will be added to your loan for your next payday.
This company has now taken at the least $300.00 to borrow $500.00. And if you do not call 3 days before our next payday, it will happen again, and then you will have $450.00 invested in borrowing $500.00.
Pay attention to every detail of any loan like this, and make sure the whole balance is paid off in full on your first due date. This is the only way to avoid the traps and walk way with your shirt!
If you have gotten stuck in the trap and your debt has gotten out of control, take a deep breath, there is online payday loan help available.
Contact a payday loan consolidation company and get help in taking care of the phone calls, and collection activity. These companies can help you out and offer you some relief, and right about now I bet you could use it!
I hope this article helps you avoid the payday loan trap and if you are stuck in it find help f to get out of it.
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