The Payday Loan Company Said “Come On Down”…

It is not unreasonable to think that if you get a pay day loans online you will be able to fix all your financial problems in for now. After all the commercials on T.V. can make it look pretty simple.

I for one have used them but I am also aware that there are many disadvantages when it comes to using them.

One of the biggest disadvantages of getting a payday loan is the high interest that the payday loan companies charge you. For example, in my own experience if we left a personal check for 300 dollars, the loan was only for 240 dollars. The company made 60 dollars off of our loan or had an interest rate equaling 20 % of the amount the check was for. Imagine that for every client, if they made at least 20% off of the loan, how much money the company makes. In fact, some states have even prohibited payday loan companies because of their murderous interest rates. It’s like making a deal with the devil you have obligated to do his dirty work and desperation wins out.

Another misleading concept magnified by the pay day loans online companies is that it is a simple process, just run on down there and they will hand you over the cash and it is just as simple to pay back your loan. But like anything else to good to be true there is a catch. Of course they want to know what you make and your bank account information, so you would need to have a canceled paycheck to show them. You also may have to pay back, as much as, four times the amount your borrowed, which lucky for you comes directly out of your bank account. And of course they make it sound like they are making this process for your convenience.

If you happen to been one of those unfortunate souls who happened to take out a rather large amount for a loan, the company will hunt you down until you have paid back every single penny and then some of course. They sweet-talk you, into believing that they are doing this all for you, that it is all in your best interest. When in fact they don’t happen to mention that along with your loan, you are also paying fees and other extra charges added to your loan. Should you make the mistake of paying late or having not enough money in your account, the companies are relentless, calling you at work, at home, and on your cell phone. The companies even go so far at to call and bother family and friends, in an attempt to get paid. Some companies have even found loopholes or ways around the laws of the Fair Debt Collection Act, to harass you and not feel the wrath of a lawsuit for the illegal actions.

Most importantly of all payday loans are not the answer to long term, financial problems. It’s like putting a band-aid on a gapping wound, the wound is still bleeding and it hasn’t received the proper medical attention. Your financial problems are still going to be there after your temporary fix. And unfortunately this quick fix could even increase your financial woes, you still have to pay off the loan, another bill that will becoming out of one of your next paycheck, if not several paychecks.

Most importantly educate yourself and remember, no matter how hard the times may seem, that a payday loan is not the best option. All the disadvantages that come along with the loan, you are better off with out it.

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