Payday loans are a type of payday cash advance. They allow people to borrow money from payday lenders for their next payday, typically at an annual percentage rate (APR) that is much higher than other types of credit cards or personal loans.
Payday lenders provide this small amount of capital in exchange for being paid back on the borrower’s payday – hence, the name “payday loan.”
The payday loan industry has been accused by many borrowers and consumer advocates alike of predatory lending practices.
This article will discuss the 10 reasons why payday loans are such a bad idea!… and you should AVOID if you can…
Let’s now discuss the reasons why payday loans are a bad idea.
1. Payday loans can cause you to go into debt.
The number one reason why Paying payday loans off early is a really bad idea is that the Payday loans can cause you to go into debt even more. The payday loan company will charge a lot of fees and penalties, which can add up quickly.
This may lead you to take out more payday loans just so you don’t go into debt with the first payday lender. If this happens, it could mean even bigger problems for your finances in the long term.
There may be other finance options that may be available to you rather than going for the payday loans, so do your research before applying.