Payday Loans – Convenience or High Cost Debt Trap
Saurabh Jain
August 07, 2008
Cash advance pay day loans have become a reality for people with bad credit histories and/or frequent cash requirements. These loans can help you to avail cash when conventional routes are blocked for you because of earlier bad debt management. These loans help you to tide over a temporary bad patch and get cash within 24 hours in your bank account. Loan is generally sanctioned within minutes of applying online or by visiting Vendor´s or Franchisee´s shop.
Why does it work?
A fee is charged for payday loans. This fee translates to $15-$30 for each $100 borrowed. There are other traps for consumers with bad debt management in form of penalties and extra costs.
When does it work?
When the requirement is urgent and shortage of funds is temporary and is likely to get corrected when the month´s salary arrives.
It helps you to improve an otherwise bad credit history too if cash advances are paid back in time.
When is this a trap?
When the cash advance pay day loan is not paid on time it may result in extra penalties and inflationary costs.
When the loan payday is missed it may result in the payment of same fee once again.
Even when the advance loan is prepaid it may attract prepayment penalties.
Also, in case the check gets bounced because of unavailability of cash in the bank account, it may result in payment to pay day loan vendor and to the Bank too.
Pay Day cash loan can be applied by visiting many payday shops spread across all states of US. Interestingly quick cash advance schemes have succeeded in evading regulatory watchdogs.
Also, payday loan option is available too. An easy to fill online form is available on vendor´s websites. An online request is followed by some instant income and identity verification by telephone. If the loan is sanctioned which generally is the case, your bank account will be credited with the loan amount by next business day.
A word of caution, try to avoid giving Bank mandate to the lenders for direct debits from your bank account. It may lead to unwanted or disputed transactions.
Also, try to avoid converting payday cash loans into a long term revolving loan. It will land you into a debt trap. These cash advances are for short term only. Visit easy payday loan for more information.
Why does it work?
A fee is charged for payday loans. This fee translates to $15-$30 for each $100 borrowed. There are other traps for consumers with bad debt management in form of penalties and extra costs.
When does it work?
When the requirement is urgent and shortage of funds is temporary and is likely to get corrected when the month´s salary arrives.
It helps you to improve an otherwise bad credit history too if cash advances are paid back in time.
When is this a trap?
When the cash advance pay day loan is not paid on time it may result in extra penalties and inflationary costs.
When the loan payday is missed it may result in the payment of same fee once again.
Even when the advance loan is prepaid it may attract prepayment penalties.
Also, in case the check gets bounced because of unavailability of cash in the bank account, it may result in payment to pay day loan vendor and to the Bank too.
Pay Day cash loan can be applied by visiting many payday shops spread across all states of US. Interestingly quick cash advance schemes have succeeded in evading regulatory watchdogs.
Also, payday loan option is available too. An easy to fill online form is available on vendor´s websites. An online request is followed by some instant income and identity verification by telephone. If the loan is sanctioned which generally is the case, your bank account will be credited with the loan amount by next business day.
A word of caution, try to avoid giving Bank mandate to the lenders for direct debits from your bank account. It may lead to unwanted or disputed transactions.
Also, try to avoid converting payday cash loans into a long term revolving loan. It will land you into a debt trap. These cash advances are for short term only. Visit easy payday loan for more information.
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