The Scary Truth about Payday Loans

Payday Loans May Not Be the Answer

If you’re thinking about taking out a payday loan, you might want to think twice. Payday loans may not be the ideal situation that they’re touted to be. In fact, payday loans may be a form of predatory lending at its best (or worst). If you’re thinking of getting a payday loan, you’ll want to read this first.

How It Happens

You need cash but you’re not getting paid for another three or four days. It’s an emergency and you need the cash right now. What do you do? Why not get a Payday loan? After all, you’ll pay it right back as soon as you get paid. No harm no foul, right? Wrong!

You’d be better off using a credit card for your emergency situation. Payday loans can have interest rates accruing to more than 400 percent. Is it legal? Yes. Is it right? Not really.

Payday lenders take advantage of those who are strapped for cash. While you might plan on paying that payday loan right back, in actuality you probably won’t pay it back for quite some time, accruing interest charges each time you renew the loan. Before you get caught in the payday loan trap, look at your other available options.