Home > Payday Loans > The Good, The Bad and The Ugly about Payday Loans

The Good, The Bad and The Ugly about Payday Loans

Are Payday Loans really a good idea?

They can sure help you out when you are in a tight spot financially, but there are several serious factors that need to be considered before you actually take out such a loan.

Payday loans have become extremely popular and in fact, it would seem that everywhere you turn there is an offer for a payday loan to get you the extra money you need until the next payday.

Millions of people are looking to Payday loans to help solve temporary financial crises.


What Is A Payday Loan?

A Payday Loan is an “unsecured” loan given to a borrower for a short-term.

Payday loans are also called “cash advance loans”, “postdated check loans”, or “deferred-deposit check loans”.

No matter what you call it, it comes down to one thing: getting instant cash advanced.

Payday loans range in size from $100 to $1,000, depending on state legal maximums.

A Payday Loan is a small loan you can use when you are temporarily out of money.


How Do You Get a Payday Loan?

You have two choices – get it online or get it in person.

Payday Loans are made by Payday Loan stores, check cashers, and pawn shops. Some rent-to-own companies make Payday Loans. Loans are also marketed via toll-free telephone numbers and over the Internet.

You can qualify for them easily. All they require from you is to be 18 years of age with a U.S. citizenship, steady employment and in most cases, a valid checking account for the electronic transfer of the amount.


What is Good About Payday Loans?

A Payday Loan can be obtained for any purpose – and at any time.

A Payday Loan is the fastest and most easily available loan in today’s time.

These loans make available to you up to about $1,000, and it will be deposited into your checking account within 24 hours; in some cases, it could be as soon as 30 minutes.

All you need to get this type of loan is proof of employment or last month’s pay slip, apart from giving your bank account information.

Payday Loan companies offer financing to consumers who wouldn’t be able to get emergency cash anywhere else.

They provide immediate financial relief without a great deal of struggle.


What is Bad About Payday Loans?

The main pitfall with Payday Loans is that they don’t help you solve the problem at hand. If you’re having financial difficulties, payday loans can only make the problem worse.

The high rates of Payday Loans make it difficult for many borrowers to repay the loan because they are already in a desperate financial state.

They keep extending the loan and you end up paying more in fees that you originally borrowed, putting you in a worse financial shape that when you started.


What is Ugly about Payday Loans?

Payday Loan Companies charge you exorbitantly if you fail to repay them.

You can be charged $50 to $60 a day for nonrepayment. (NSF)

The interest rates on Payday Loans range from 300% to over 1,000%.

Because of this you will actually end up owing more in interest than what you borrowed in the first place!

Payday Loans may appear to be a quick and easy way to get money for rent, bills, credit cards, etc.

Most Everyone intends to pay off the loan immediately. But that rarely happens.

If you don’t have enough money to pay the bills, it is not likely that you will have extra money to pay off the loan in full.

The first loan is simply the start of a cycle where you are continually further and further behind on your payments and in need of even more money.

Before you know what has happened, you are left in a downward spiral of overwhelming debt.

Disclaimer: Individual financial situations and obligations vary considerably. This information should only be considered a general guide and is not intended to replace professional legal or financial advice.

* If you like this article please click the little yellow star at the bottom of this article.

Feel free to leave a comment. There is much more to say about Payday Loans and what they don’t want you to know, if you are interested.

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  2. July 3, 2013 at 12:39 am

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  3. Reven. Mike Benson
    June 3, 2013 at 5:09 am

    Are you in any kind of problem or situation and you need the help of GOD? if yes email us today at :christistheanswer@gmail.com and all your problems will be solved and all your sorrows will be over thanks.

    Jesus Is Lord.

    Reven. Mike Benson

  4. Mr Kent
    April 24, 2013 at 2:50 am

    My name is Mr Kent, i am from Chicago USA, married, i have been searching for a genuine loan company for the past 3 years and all i got was bunch of scams who made me to trust them and at the end of the day, the took all my money and left me money less, all my hope was lost, got confused and frustrated, i lost my job and find it very difficult to feed my family, i never wanted to do anything will loan companies on net anymore, so went to borrow some money from a friend, i told him all that happened and he said he can help me, that he knows a loan company that can help me, that he just got a loan from them, he directed me on how to apply for the loan, i did as he told me, i applied, i never believed but i tried and to my surprise i got the loan within 12 hours,i could not believe my eyes, i am happy and rich today and i am thanking God that such loan companies like this still exist upon this fraud stars all over the places, please i advise everyone out there who are in need of loan to go for louisloancompany@yahoo.com , they will never fail, your life shall change as mine did.

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  14. Mrs. Laura
    March 3, 2013 at 9:01 pm

    Hello,

    My name is Mrs Laura i live here in USA and I am talking as the happiest person in the whole wild world today and I told my self that any lender that rescue my family from our poor situation, I will tell the name to the whole wild world and I am so happy to say that my family is back for good because I was in need of a loan of $65,000 USD to start my life all over as I am a single mum with 2 kids and the whole world seemed like it was hanging on me until I met the GOD sent loan lender that changed my life and that of my family, a GOD fearing lender,Mr. FRED JACKSON, The owner of FRED JACKSON LOAN COMPANY. He was the savior GOD sent to rescue my family and at first I thought it was not going to be possible because he charge me for my registration fee which was just $320 after my loan was registered by the Federal Ministry of Finance (FMF), my loan was transferred to me within 24hours, then I received my loan of $65,000 US dollars and I will advise any one who is in genuine need of a loan to contact Mr. Fred Jackson via: fredjacksonloancompany@yahoo.com.

  15. James Evans
    February 4, 2013 at 5:36 pm

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  17. Anonymous
    August 17, 2012 at 9:40 pm

    I have literrally ruined myself financially.When the economy went bad a few years ago I had to quit paying on my credit cards,which totally messed up my credit. Ihad my hours cut bat my job where Ihave worked for4years.Icould not find a second job to help pay the bills. Itook out a internet payday loan which now has led to 4. Iam so upside down Ihave considered ending this so called hell of a life Imstuck in right now .Ican”t sleep and my stress level has reached it”s peak. GOD HELP ME!

    • Reven. Mike Benson
      June 3, 2013 at 7:14 am

      Are you in any kind of problem or situation and you need the help of GOD? if yes email us today at :christistheanswer@gmail.com and all your problems will be solved and all your sorrows will be over as we pray with you thanks.

      Jesus Is Lord.

      Reven. Mike Benson

  18. john smith
    March 20, 2012 at 3:40 pm

    Attention,

    Announcement to you all, here is to offer an affordable loan at a very low interest rate of 3% apply for your loan today and get approved with 5-7 working days, were sought for this opportunity to get a loan?. You have been rejected by various banks and other financial institution because of your credits or whatever?. This is your chance to grab your loan without any stress involved, just get back to us as soon as possible so that with the transfer of processing the loan ready to go for more information contact us on this email paydayloancompany28@gmail.com

  19. Anonymous
    August 8, 2011 at 3:01 pm

    This for all those people, consitting getting payday loans.The only way i can decribe it ,is its like a drug.Once you do it. you start digging yourself a small hole and before you know it, It becomes HUGE hole, And it very hard to get out of it. You know how I know this. Because I”m in that very HUGE hole. For almost over a year now. Every week I stress to fine ways to pay my payday loans knowing if i pay them off I wont have enough money for the week. So what do i do I , I take out another payday loan. This has been going on for over a year now. And to this day I’m up to 8 payday loans. Payday loans are addictive, like i said like a drug. I think i’ve found my way out of the hole. I only wished i would found Pat Mcmann before i started these payday loans. My suggestion is to go to ….Findhelptopaymy bills.com. Theres lots of information there to help you not to not get in the same situation I’ve gotton myself in.. I will end this by saying…. thank you Pat Mcmann

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