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. (more…)
Like many states Hawaii has had the payday loan industry in place for several decades allowing anyone to obtain a payday loan.
Unfortunately the state does not have an overall high income and many areas are poor so the state is finding more and more people are using payday loans for one reason or another.
One of the most common reasons people are using these payday loans is usually a financial emergency has popped up and they dont have the extra money to cover it.
Nevertheless, consumers are being taken advantage of when they take out such a loan. (more…)
The Delaware state payday loan laws are another example of perfect bait for the payday loan trap. They define payday loans under the small loans law in Delaware, thus allowing the lending companies to charge any interest rate the borrower will agree to pay.
This is an open ticket to being taken advantage of. (more…)
First and foremost, Maryland payday loans are illegal. This has not stopped payday loan companies to operate in Maryland, but they have no power to collect anything but he principal of the loan borrowed. No interest or later payments, no threat of court action.
But! Yes, there is always a but it seems. By renaming these loans as consolidation loans and such they become legal operators. (more…)
In the current enviroment payday loans have been exposed to even more scrutiny then in years past. Whatever your stance, pro or con, there is no denying that payday loans do in fact service a particular market segement that may otherwise not be approved for a loan at all. A payday loan is just what it sounds like; an unsecured loan given to a borrower on the understanding that it will be paid back in short order once payday arrives.
Why are payday loans more popular than ever?
– ease of application: the entire process can be completed online. (more…)