I’ve always heard how evil PayDay cash loans are. They have been called “scams” and “ripoffs”. I, personally, never had a run in with them until recently. I met with a 60+ year old woman that was having a hard time making it work financially. She was still employed and trying to take care of her elderly son who had his fair share of hard times. Thinking she had on other options, she turned to one of those Quick Cash PayDay loan services.
When she showed me her statement my jaw almost hit the desk. She had taken out a 9 month loan of $400 (or so) and her interest rate was 521%! I really thought it was a typo at first. The loan accrued a $5.35 interest charge per day. $5.35 PER DAY! I don’t remember the exact pay off amount, but I remember it being somewhere in the neighborhood of $1400 for a 9 month loan. If that doesn’t convince you to stay away for PayDay cash loans, then what will? To shed more light on the topic, Miranda Marquit offers her take on why you should avoid these quick cash loans (better know as PayDay nightmares).
The lure of easy money is alive and well, even after the financial crisis and recession he have had. Indeed, with credit standards tighter than ever, it is little surprise that many are looking for ways to get their hands on money without having to go through with an onerous credit check. Payday loans seem perfect, allowing borrowers access to money, usually without a credit check. In many cases, all you need to get a payday loan is a bank account and proof that you have a job. You head into the payday loan place with this information, fill out a form, and write a check for the amount of money you want, plus the fee that payday loan places charge.
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