4 Reasons Why Payday Loans Are Not A Good Idea
1. Interests Are Too High
Payday loans are notorious for their high interest rates. Therefore before getting a payday loan I would urge you to think carefully about the interest rates. Keep in mind that it is not unusual to have a 5000% interest rate, as it is often measured in short-term loans, and days. Therefore the rates can be quite deceitful and you may be getting yourself into a situation which is not easy to get out of. In fact, it can often happen that you end up owning double of what you borrowed! So, with all this in mind, why would anyone get a payday loan? Well, it seems as a good idea, unless you stop to think about the rates, so that teaches us never to make rash decisions.
2. You Are Charged For Being Late
Another thing you should keep in mind are the charges and penalties that you will pay, if you are unable to pay off the debt. In other words, you will be charged for paying late, and you will be charged with each check of your bank account by the lender, so you should definitely keep that in mind. These fees can increase your loan significantly, until it becomes rather frustrating and a complete nightmare to pay it off.
3. Lender Access Your Bank Account
In addition to that a lender will have the access of your bank account, and you just have to stop and wonder is it something you really want? There are numerous other ways to get some money that do not include getting a payday loan, and perhaps you should first think about them, rather than getting yourself in the position that a lender can freely access your bank account.
4. What If You Can’t Pay It Back?
Whenever you are getting yourself into a loan or a situation that you have to borrow money, you should first think about the future. If you know that you will not be able to pay off the payday loan, you should try to avoid getting one in the first place, especially with the high interest rates that are usually involved. In addition to that, if you are getting a payday loan, make sure that you have a strategy prepared that will help you how to get out of it and pay in off, well in advance before even getting one.