There’s a reason payday loan companies have sprung up out of nowhere. People are often struggling for cash and need some money, fast.
Payday loans offer a small loan that you can pay back on your next payday. No problem, right? In fact, they can be very problematic.
Here’s why you should avoid payday loans, and go with companies such as Loan Moneytree, which offer more measured wageday advance loans.
- The interest rates are too high
The next time you see an advert for a payday loan, check out the small print. If you thought credit card interest rates were high, you haven’t seen anything yet.
The interest on a one week loan can be as high as 911% with some companies. That means that loan is going to cost you a whole lot more in the long run.
- Payday loans often contain hidden fees
When you take out a payday loan, you’ll see that there are plenty of hidden fees included that ramp up the final price.
They may be quick, but you’ll pay dearly for that speed in your loan.
Instead, look for a wageday advance that takes a few days to get to you, but will only cost you what the lender will tell you upfront.
- They can actually make your situation worse
If you’re struggling for cash, a payday loan can seem like a good idea in the short term. It gets you the money you need within 24 hours, perfect if you’re in a bind.
However, those who are low on cash are going to be the people struggling to repay them. It can actually make your financial situation worse.
- You can end up in a repeat cycle
On that note, think about what can happen if you take out a payday loan. You borrow money, then when the month is up you can’t afford the repayment rates.
You take out another loan to pay that one off, and you’re stuck in a cycle of borrowing that’s only going to get more expensive. In the end, it’s just better not to use them at all.
- Payday loan companies can get access to your bank account
The scariest part is that a payday loan company has direct access to your bank account. That’s ok if a loan company is trustworthy, but many payday loan companies aren’t.
They can take whatever fees they like, direct from your account. Keep yourself safe and stay away from them.
So, what’s the alternative? Companies such as Loan Moneytree will get you the cash you need, safely.
You can compare between over 40 different loan companies, and examine their fees and interest rates before you sign on the dotted line. You can get a wageday advance without the fear and high interest rates.
If you’re interested, come to us for a quote. You’ll see there’s much safer places to get you a loan these days.