We have all been there. Your car need repairs, your roof springs a leak, or you have a family medical emergency and you don’t have enough cash on hand to cover the expense. The temptation of getting an online payday loan may be great.
If you decide to go the online pay day loan route, you will have no trouble finding one. If you type “pay day loan” into any search engine, the results Will be too numerous to every get though. If you go to your spam folder of you e-mail. chances are there is at least one offer of “quick easy cash” waiting for you right now. Before you get an on line pay day loan, make sure you know what you are getting yourself into.
According to the Consumer Federation of America, if you borrow from an on line pay day loan company you should expect to pay $30 for every $100 you borrow. Furthermore you can expect to pay 650% APR (Annual Percentage Rate).
Let’s assume your car needs repairs. The bill is going to run you $500. If you borrow $500, you will it will cost you $150 in finance charges. That’s before the 650% APR. The loan must be refinanced, or paid in full on your next payday. The money will be automatically withdrawn from your account. If, for whatever reason, you do not have the amount in your account, the bank will charge you over limit fees. Also the payday loan company will tack additional fess onto what you already owe. In most cases they can prosecute.
Another important thing to take into consideration is the fact that in order to get an online payday loan you will have to fill out an application. The application will ask personal information. You will have to give your social security number, your back account information. As well as information about employment. This put you at high risk for identity theft.
In closing, everyone finds themselves facing difficult financial problems from time to time. When we face such troubles it is often easy to look for a quick solutions. Online payday loans may seem like a good option, but you must ask yourself if they truly are. Otherwise, you may find yourself in a situation where you will pay much more in the long run.