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Why Avoid Bad Credit Payday Loans from Direct Lenders

We hear a lot about bad credit personal loans these days and it is causing some controversy. People are divided as to whether it is beneficial or not. Some people claim that because of its unique characteristics this kind of loan can be a blessing to those who are facing financial difficulties. There are those who are pointing out to the fact that together with the benefits are several drawbacks.

To help you, here are some of the reasons why you ought to stay away from bad credit payday loans from direct lenders:

Incredibly High-Interest Rates

You Take out Little

The major reason why you ought to stay away from this sort of financial product is because of the interest rate. Usually, the people who get this kind of loan would only need a couple of hundred dollars at most. These are usually to pay some bills that are set to become due before the next paycheck.

They Take out More

What they don’t reckon with is the fact that the payday companies could charge as much as 25% of the amount just for a term that covers a week or two. When you extend that, it could mean a lot more. When you think about it you’re throwing away a good portion of your income just on the fees of the loan.

Falling into a Trap

Normally a hundred dollars each month should not make a difference, at least not that much but most of the families who get this sort of loan mostly have low incomes. They are the ones who work for a minimum wage. So when they fall into a loan trap, which happens when a borrower is forced to take a loan each month in order to cover up for the first one, it could mess up their finances.

There Are Alternatives out There

Advances on Credit Cards

There are alternatives that are recommended by experts that you should try first before you get a loan from a payday company. Try resorting to taking out a cash advance on a credit card instead. Though the interest rate on that is still high, it is still a lot lower than what you can get from if you resort to a loan from a payday lending company.

Borrow from Friends or Family

Another option that you should look into is to just borrow the amount from people that you know, like your friends and family. That kind of borrowing would have no interest and there would be no fees involved so it would be the most advantageous one for you. You could also try asking your employer if they could give you a cash advance. That’s your money after all that you have worked for.

Try to Avoid Borrowing If Possible

The best way is for you to avoid being in a situation where you would need to borrow money in the first place. You can do that by getting a higher paying job or maybe asking for a raise from your employer. There are ways that you can get more money. You just have to be bold and daring when it comes to exploring all of the possibilities.





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NOTICE: PLEASE BORROW RESPONSIBLY. A SHORT TERM LOAN SHOULD BE USED FOR SHORT-TERM FINANCIAL NEEDS ONLY, NOT AS A LONG-TERM FINANCIAL SOLUTION. CUSTOMERS WITH CREDIT DIFFICULTIES SHOULD SEEK CREDIT COUNSELING OR MEET WITH A NONPROFIT FINANCIAL COUNSELING SERVICE IN THEIR COMMUNITY.


We are not a lender. Only your lender can provide you with information about your specific loan terms and APR and the implications for the non-payment of your loan. Ask your lender for their current rates and charges and their policies for non-payment. Our lenders may offer you a loan with an APR between:200% and 2281%. The APR on a small dollar, short term loan represents the amount of your loan, cost of the loan, term of the loan and repayment amounts and timing. Loans on the lower end of the APR range may be for a larger loan amount and for a longer-term. Loans on the higher end of the APR range may be for a smaller loan amount and for a shorter term. Depending on your credit needs and desire to pay your loan off quickly, your lender may only offer you loans with an APR near the high end of the range displayed.

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