Payday loan companies charge very high fees for their short-term loans. Even the cheapest payday loan providers in the industry cost significantly more than other credit products.
How do they get away with this? By offering really convenient access to small short-term loans to ANYONE who has a job, regardless of the borrower’s credit history.
The formula is simple, if you can provide a payday loan lender with a copy of your paystub; they will in many cases lend you up to 100% of the amount of your pay.
These loans prey on those who find it difficult to make ends meet or who struggle with debt. Middle class families are strapped and so an unexpected expense like a car repair or medical problem could tempt a person to take out a payday loan.
Generally if you have considered a payday loan, it’s because your bank won’t help you and you have exhausted all your other options.
If you’re bank won’t help you consider the reasons why. Do you have a lot of debt? Have you been making late payments? Do you have a bad credit history? Do you have high housing expenses?
If this sounds like you, don’t resort to a payday loan. Answering yes to any of the questions listed above means it’s time to take a good hard look at your finances.
If you have too much debt, why would you add more? If your budget is so stretched that you are only making minimum payments and considering a payday loan, you really have no choice but to explore the root cause of your problem, your debt.
It’s funny how debt can accumulate over time and in the blink of an eye, it is out of control. When debt gets out of control, worry and stress set in. The worry and the stress revolve around credit, homes, cars and the lifestyle that we have become accustomed to.
How can one get control of his/her debt and avoid a payday loan? It all depends on the severity of your financial problems. The issue is that most companies who advertise debt consolidation services are often nothing but debt counselors and bankruptcy trustees. They use the phrase, Debt Consolidation, as a guide to get you to call.
The simple truth is that the Federal government has made a number of programs available that can freeze the interest on your credit, reduce your debt dramatically, offer you a single payment and do not involve filing for bankruptcy. To learn more about these programs please visit http://www.debtcare.ca/