There will always be a time in our lives that we will face unexpected expenses or financial emergencies that sometimes leave us hopelessly stressed. Nowadays, due to the shaky economic climate, many people are vulnerable and confused – which leads to sudden decisions that may or may not be helpful to the situation.
When someone needs quick and easy money for a financial emergency, most of the time, the one he will run to, first, is the payday loan company. Yes, a payday loan has some benefits that one can get, but, most of the time, the dangers of payday loans are much worse than many people have been taught to believe.
Lately, payday loans have earned a negative reputation. Many consumers complain about the excessive, high interest rates and fees that payday lending institutions are charging for the loans that they offer; as a result, many of them end up dealing with debt collectors, like Prestige Collections Agency, or end up filing suit for predatory lending.
Many borrowers, sometimes, focus on the good side of the loan, without minding a bad side that can bring much havoc to his or her financial situation. A payday loan is, oftentimes, issued through the help of a storefront lender or by a check-cashing store. The said loans will be due on your following pay check day, which is usually within a period of two weeks. Mind you, each payday loan check is not served for free – obviously, they will charge you for every check that is cashed out.
The fee for a payday loan is high and you will have to pay it back in a very short amount of time (shortly after the very moment that you borrowed it); this, at times, can be a challenge for the borrower, especially if his next salary is a month away! Failure to pay the loan back will inevitably result in going head-to-head with collection agencies, like United Recovery Collections, or even deceptive collection organizations.
The dangers of payday loans can really be devastating. You can easily get trapped in a cycle, such that you will take out a loan during every paycheck period, then when the loan is due, it will be due at the same time you get your pay check – so, your whole paycheck will be going towards the loan, leaving you with NO money! This situation becomes a very vicious cycle, because the only reason you borrow a loan, is to handle an urgent financial emergency; but the sad thing is, you will be forced to borrow again and again – just to get through the month! It can be a very hard cycle to break and escape from, as it will invite a relentless barrage of payday loans.
The payday loans that you failed to pay back (on the due date) will earn you more fees or charges to attend to, each extended day. This will lead to more big loans with interests, that can totally pull your financial life in such a downward spiral, that companies like Hunter Customer Services can potentially end up harassing you for debts that are were in arrears. So, most of the time, a payday loan is not quick and easy money, but rather an invitation to financial ruin, as a payday loans can potentially wreak havoc on your income!
Though it is quite impossible to escape or break out this cycle of payday loans, you can also put an end to it, if you are determined to do so. There just needs to be a little sacrifice, on your part; you can start this by looking and checking out your minimum expenses for the whole month; this definitely means that you should cut back to just covering the major utilities that you need most (rent, car payment and food). The other things you usually enjoy must be set aside, first, until you have enough income or money to finally stop using these payday loans.
Saving money can take a few months, but you have to sacrifice, just to be free from the grasping hands and dangers of payday loans. If you succeed, then this means that you will no longer have to use a payday loan, just to survive.
You can also avoid borrowing money and future problems, if you consistently save money – at least $1000 – so you can use it to cover financial emergencies (like traffic accidents, car repairs, medical bills and the like). Changing your lifestyle can be a painful process, sometimes, but if you are really determined to change your financial status for the better, your sacrifices will be well worth it – even though the process can affect all the aspects of your lifestyle.
Don’t be tempted by easy money, try saving and changing your ways. A payday loan is not the answer – whether you are broke or have limited income. Maybe you have a problem with your budgeting, and you pamper and treat yourself with frivolous trinkets – try harder to avoid the need of having to keep up with the latest ends and or having the latest gadgets (as they serves no real purpose & will go out of style a week later).
A payday loan can be the answer to your problems, in the meantime, but if you can’t handle paying it back, when the debt is due, then prepare yourself for more expenses and charges. Those are the dangers that payday loans can give you, if you mismanaged your finances and fall behind on your financial responsibilities.