18. srpna 2016 v 8:41


Over the last couple of years we've all been bombarded with lots of emails, banners, and event TV and radio commercials offering in order to save our immediate cash shortage by offering what are known as payday loans.

Obviously, the offers indeed sounds very interesting, in case you have a phone as well as a checking account, the cash will be transferred to your account by next working day.

The ads always fail to mention the astronomical cost that you'll endure by taking out such a loan, however. Due to legal issues, the interest rate on such loans is usually much like credit card rates. It is obvious thought, that these particular lending companies will not make sufficient profits by lending the money for a couple of weeks at annual rate of 10%. Therefore, in addition to the regular interest rate, these organizations charge so-called service fees. These variety of the fee is determined by the company you deal with, however, they often turn out to be much higher than your interest payment.

Furthermore, if you take a payday loan using the term of 2 weeks, until your following paycheck that may be, the chance is you won't have the funds for to make the payment and still have enough to have on. After all, if you had the funds, you wouldn't need the loan in the first place. In cases like this, the lending companies are more than happy to reissue the financing to you or extend its due date by another two weeks. Obviously, in order for these to cover their time of processing your loan again, they will yet again charge you with all the astronomical processing fee. Eventually you realize that it's been a few months and you still haven't had the opportunity to repay the money, yet your account is being charged every two weeks. After performing some simple calculations by combining the charges, you can see that you've already paid more than you've borrowed, yet you still owe the principal.

Reading this, one will rightfully use a question of how to get immediate funds without having to be getting into endless debt by predatory lenders. There is no one right answer. There are some options available, which might enter in to use. If you already have payments due or bills to pay, try calling your current creditors and try to postpone the payment, and even temporarily freeze the payment schedule. The chance is that your creditor might give you a 1 time break if you've been paying your bills on time. If the situation is basically that you need money right away, and also you can't take it out of your budget, you can always considering borrowing from you family and friends.

In order to prevent such situations when you have to turn to lenders or others for help, it's better to generally have at least some savings, in case a financial need should arise. If the bill is repaid within 30 or so days, bank cards are also a sensible way to solve temporary financial constrains, especially considering that there are no fees or interest to pay for.

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