When times are hard, we have all considered payday loans to help us get through the rough patch. The problem is that payday loans are not always safe and can cost you more than desirable. The only real benefits to get such a loan is that it is pretty much instant and the only collateral you need is your paycheck. You can basically call it “surrendering your paycheck for a quick loan”. For some of us there are really no other options and bills need to pay paid. For others, it can be used to spend time with an escort from Wet n’ Wild Escorts. Let’s go over some of the dangers of quick payday loans.
Your information goes into the hands of strangers
With all the risks of what people can do with your information these days, do you really want that much of your personal information out there. People that work with quick payday loans usually not the most reputable institutions. Not just the institutions but also the people who go there regularly.
It is easy to get stuck in a cycle
One big problem with quick payday loans is that it very easy to get stuck in the cycle of getting payday loans. You get one now to cover some unexpected bills, then the next week or two when your next paycheck comes in you have to pay your last payday loan. At this point you wind up having to get another payday loan in order to stay on track with bills. It is actually very common in the payday loan circle. Many of the clients are repeat clients.
Extremely high interest rates
It is not uncommon for a quick payday loan service to charge between 15-30% interest rate per 100$ on a 14-day loan. The rates are just ridiculous. They do this because they know that their clients are in real need of a small and quick loan. They will pay what they need to just to get the money they need in the short term. In 2015, it was documented that 80% of clients wind up getting a loan again within 30 days and that 1 in 5 default on their payment.
Quick payday loans are just not that safe
As you can see, opting for the quick and easy option of getting a payday loan can cost you much more in the long run. Yeah, you are almost guaranteed a loan against your paycheck but you will be victim to the extremely high rates and may get stuck in the loop of continuously needing these loans. There are other alternatives that you can look into instead of resorting to quick payday loans. Family is a good example, surely your brother won’t mind if you sign over your check to him to burrow a little money for a couple of weeks. Don’t resort to taking the big risk of payday loans.