Payday loans are really expensive
Payday loans are able to satisfy the needs of the people but the borrower has to repay the loan on the basis of the coming payday. These cash advances are in fact very expensive to the people, and so people are obliged to repay the loan on the coming payday. For getting the payday loan the lender needs to have the check of the borrower's account to maintain the security of the loan. These loans are highly expensive than the other types of loans especially the cash loans. These types of loans are also known as costly cash.
Payday loans become more costly when you are not able to pay in time
If you extent your repayment plan or unable to pay back within the due date, payday loans become more expensive. IF you extend your loan for another 14 days, you end up paying half of the principal amount as interest.
A Payday Loan Company can file a Judgment against You
Depending on how large a debt one has, the payday loan lender could decide to file a law suit against you at any point of time although it is a part of the unsecured debt! If the company is able to get a judgment one could be forced to even pay back the money through bank account levies, wage garnishment, or property liens. One should keep in mind that each state has different laws regarding this and several has laws that even force payday loan companies to set up installment payment plans with their clients. So while it’s true that a payday loan company can file a judgment, it really never comes to that point!
Can one get rid of Judgment?
The easiest way to do this is to simply get in contact with the payday loan lender before the first default. By talking to the payday loan company first, one can work out some sort of arrangement with them before they can even send the debt to a collection agency. At some point, the lender will give up trying to make money off you and will just want their money back. Most people are able to work out a payment plan where they pay the loan back in installments, but even if the lender is unwilling to negotiate a plan, they will at least know that every effort has been made to pay the loan back and will be less likely to file a judgment.
Better Business Bureau’s (BBB) recent warnings against onlinepayday lender scams
BBB reported that hundreds of people complained to it against few online payday loan providers like United Cash Loans, OnceClickCash.com, rbtloans.com, 500Fastcash.com, Ace Cash Services and Ameriloan. People accused of these companies that once they have signed up for one time payday loan and provided their bank account information. All the subsequent payments were counted as finance charges, leaving the principal amount unpaid. BBB also reported that some consumers paid 3-7 times of the original loan amount and interest as high as 547%.
You can look for BBB reliability reports for free at http://upstatesc.bbb.org.
If anyone still goes for payday loan, is payday loan debt settlement the best option?
A pay day loan can be obtained online and with no credit check. Bad credit will not disqualify one from qualifying for a pay day loan. One can use the money for what ever purpose necessary and the money can often be deposited into the checking account the very same day. All one needs is a checking account, and a steady source of income to get up to $1000 dollars or more deposited directly into the checking account. There are no other fees or charges incurred no penalties for early repayment, loan extension guaranteed and also loan is delivered on the very same day.
Alternatives to Payday Loans
When there is a need for credit one should look for other options other than payday loans:
One can consider a small loan from the following sources
- credit union
- A small loan company
- An advance on pay from the employer
- Family or friends (borrow)
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