You need money. Your credit cards are maxed and your family won’t lend you any more. What do you do?
Well you may think, maybe I can get a loan from one of the online Payday lenders. That is not the best idea.
The Better Business Bureau has issued a warning about deceitful Payday lenders. The BBB has had hundreds of complaints from multiple online payday lenders. Why, what is so wrong with an online payday lender, after all, it must be legit right?
Don’t Give Your Account #
Well, yes and no. For one, payday lenders know you are desperate for money so they make it look easy to get money and here is how. First, they comply with your request for a loan….usually a few hundred dollars. Unlike a Payday lender store front, the online Payday lenders asked for your bank account so they can deposit your request immediately, then they will deduct a fee and interest on top of the loan payments. That is where the convenience stops.
Since you gave them your bank account number, they now have card blanch to deduct as much money from your account as they wish. In most cases you end up paying two to three times the amount of the original loan and those charges are only for the interest, most likely you have only paid $10 or $20 toward the principle of the loan. Interest rates could be as much as 521%.
$400 Is Turns Very Expensive
Think about it, you borrow $400 and could end up paying $2084. That is a lot of money for someone who already doesn’t have any money, which you don’t otherwise you wouldn’t be getting a loan from these online sources.
Here is the reality check. If you are that far in debt, where you are so desperate you are willing to get an online Payday loan you need to rethink your current lifestyle. It is time to look at your spending habits. It is time to gain some maturity and say “no” to yourself and your “wants.”
Anyone, with any income can budget and manage their money. When you are in control of your money rather than your money being in control of you, you will being to find peace rather than financial distress.
No Nonsense Guide
If by chance you have already made the mistake of getting an online Payday loan, you may have to close your bank account in order to get them to stop taking money out. Pay back your original loan amount and learn from your mistake. Sometimes that won’t even get rid of these companies. For detailed help on how to get out from under a pay day loan get this no nonsense guide on how to deal with these companies. Unlike the pay day loan, this guide comes with a 100% money back guarantee so you have nothing more to lose and so much to gain by closing out your pay day loan debt.
{ 2 comments… read them below or add one }
Kim you are right on the mark with this write up. Anyone that uses a place like this, really needs to write a new playbook on their way of life. I’ve noticed that there is a poliferation of Amscot’s, which if I am not mistaken is a payday loan place or a cash advance superstore. They only offer cash advances up to $500. With the right dicipline, it should not be too difficult to save $500 an emergency fund to prevent from having to use a place like this. Clearly since so many of these cash advance superstores are around, you can rest assured you’ll have plenty of future clients looking to swim themselves out of financial troubles Kim
Thanks Russ!!! The key word you used is “discipline” but society teaches “you deserve it now” and you WILL pay later.