Tuesday, 17 February 2015

More Money, More Problems? The Danger with Payday Loans

It is becoming far more common these days to hear advertisements on the radio, or see gigantic signs when driving down the street, for relief from financial woes in the form of payday loans. These “convenient”, and we use that term very loosely, almost immediate loans claim to offer that extra money to get you through until the next payday – some even use the excuse to treat yourself as a reason to obtain one. So, does more money really equal more problems?

Are you thinking of getting a payday loan to tide you over for a bit – or even to treat yourself? Wait – these seemingly innocent fast-cash solutions come with their own host of problems, and if you are not aware of the risk you can easily get in over your head – and rather quickly!

First, payday loans are not free – obviously. When a company offers you fast cash, $100 for $20 for example, you might think that this $20 is worth the extra cash in hand at this moment. So you head into the business, provide your paystub and walk out with your loan. The fact that no credit report is required should be a major red flag!! This is definitely one of those times when “sounds too good to be true” really does ring true.

What if that $100 though just doesn’t seem to cut it and instead you are thinking $1000 would be that much better? Now you are talking about a $200 cost – that is a 20% fee to borrow money for sometimes as short a period as two weeks. And borrower beware – 20% here is just an example, as some places will charge far more!

Worse than the fees is the jam you find yourself in when, at the end of the month, you are yet again strapped for cash and can’t pay that payday loan in full. Think about it; if you didn’t have the cash at the beginning of the month, what makes you think you’ll have it at the end? Can’t pay it back in full? Now you are looking at another $200 in interest plus a fee for the extension.

When broken down, it is clear that payday loans are a prime example of fool’s gold – money that never actually belongs to you and just ends up costing you dearly in the end.  Know the dangers before you head into that establishment and perhaps consider some other avenue.

For more about the dangers of payday loans, or for help dealing with a revolving payday loan you can’t seem to shake, please call DebtCare Canada today at 1-888-890-0888. 


  1. Hello Everybody,

    My name is Mrs.Juliet Quin. I live in Canada and i am a happy woman today? and i told my self that any lender that rescue my family from our poor situation, i will refer any person that is looking for loan to him, he gave me happiness to me and my family, i was in need of a loan of $30,000.00 to start my life all over as i am a single mother with 3 kids I met this honest and GOD fearing man loan lender that help me with a loan of $30,000.00 Canada Dollar, he is a GOD fearing man, if you are in need of loan and you will pay back the loan please

    contact him tell him that is Mrs.Juliet Quin that refer you to him. Contact Mr.Lim Koh via email: (lim.koh56@yahoo.com)

  2. Get pleasure from!! Payday cash advance problems are very imperative that you you. This informative article has revealed you effectively about
    payday loan consolidation clearly. thanks

  3. Great post!

    But there are some good and trusted Online money lenders which provides Personal loans without hassle at the time of poor situation.

  4. This certainly happens, you ultimately get stuck with bad credit in the end, fast cash looks easy but it can bring a lot of trouble if taken again and again.

  5. Your articles are actually inclusive signified out of respectively theme.
    Yola Website

  6. Want To Increase Your ClickBank Commissions And Traffic?

    Bannerizer makes it easy for you to promote ClickBank products with banners, simply visit Bannerizer, and grab the banner codes for your picked ClickBank products or use the Universal ClickBank Banner Rotator Tool to promote all of the available ClickBank products.