WHY PAYDAY LOANS, AVOID THESE LOAN SHARKS

 

 

                 Don’t be a payday loan borrower; otherwise these highly Pricing loans pull you in dept cycle. It looks very attractive when these payday lenders say, Get easy loan in few hours with minimum formalities. But these lenders do not aware borrower what will happen if these loans are not repay at time. These loans are marked as one time or emergency loans but in reality these are prepared to keep borrower in dept with their high rate revolvers. The average payday lenders charge $25 interest rate on every $100 if you back it within 28 days. That’s an APR of 1737%. But if unfortunately you don’t make payment on time then the late payment fee will adds up between $12 and $25 with interest. In 2013 these payday lenders are criticized by leaders for their highly pricing policy. The govt. is to introduce a new law to cap the overall cost of payday loans that will be decided by new industrial regulator, the financial conduct authority (FCA). But no changes are expected before 2015 because the FCA takes over as the industrial conduct authority in April 2014. On the contrary some leaders say that the cap will limit the credit which in turn can give birth to illegal lending. Keep one think in mind one can help you only if you want to help yourself. It was studied that payday loans are generally take to meet predictable utility or emergency costs. Whatever your need, first think about various alternatives with low interest rate instead payday loan to fill up money gaps in these emergencies.

• Credit Unions are non profit community that provide loan at competitive rates to their members. You can pay into these unions to save or borrow if you need. These credit unions lend small loans of $250 to $3000.

• You can start your saving or emergency accounts to borrow at the time of emergency. You can start it with even $ 10 because every little bit adds up.

• In time of emergency you can ask your relatives, friends or your employer to help you financial. The benefits is that no loan, no interest. You can ask your employer to give you advance on your salary.
• Another best way is to approach Consumer Credit Counseling Companies. These companies will give best advice or way to get out from these financial crises. Some time they negotiate with the creditor on behalf of borrower to lower the interest rate and monthly payment.

 

                   Despite of it time to time govt. also introduces new plans of short term loans with low interest rate to protect the hard working people. You just need to keep distance from payday loan sharks because that can spoil your credit rating. But unfortunately if you find no alternatives and feel need to go for payday loan then you should be sure that you can repay it on time. And at the same time never take next loan until you repay the first otherwise these loan sharks pull in vicious circle of dept. Look save what you can or Borrow that you can repay.