If you happen to seek advice from
your friends, then you've probably heard people say that payday loans are
always bad. Then it's usually where the conversation ends. But that doesn't
really solve any of your problems cause chances are, you're still going to need
the money - which made you think of considering a loan in ht first place. In
this post, we will be discussing a lot about payday loans, what problems are to
be expected with them, and somewhat get into the reasons why a lot of people
consider them bad. Along with it, I will be showing you some alternatives
besides taking a payday loans as well.
The Dangers of Payday Loans
1. It's A Vicious Cycle
Truth is, most of us have had money
problems at least once in our lifetime. Emergencies always come and we always
have to find ways to settle it. Your car will break down unexpectedly. A
medical emergency that comes along with necessary expensive medications may hit
you in down time of yours. Or simply, anything can happen at any given time.
This may be true, but being
consistently broke before payday is just not an excuse. We should not be living
in a lifestyle where we will be forced to live paycheck to paycheck.
Unfortunately, these types of loans can get you into a never-ending cycle of
paying loans. These cycles are the ones that are difficult to get out of, not
only because they are that tempting, but also because they carry high interest
rates.
2. Extremely High Interest Rates
The interest that payday loans have
can destroy your finances. Payday loans are just plainly very high, sometimes
obviously giving the impressions that they are expensive because they prove to
be the only options you're going to have. This is basically why payday loan
companies are very profitable, because they charge very high rates when selling
loans to vulnerable people in their most vulnerable times. If you somehow feel
like you desperately running out of options and basically needed a loan, then
you must consider peer to peer lending first before going into dangerous loans.
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