subject: Top 3 Reasons To Avoid Payday Loans [print this page] Payday Loans can be a fantastic resource during times of financial hardship however, due to the short term nature of payday lending, and due to the irresponsibility of a minority of borrowers and payday lenders, payday loans can actually further disadvantage a borrower, particularly if they begin taking out multiple payday loans, lend money from irresponsible payday lenders or begin rolling over payday advance loans. The important thing to remember when applying for a payday advance is to avoid getting yourself into further financial difficulty you should always check exactly what you will be due to repay and you should always be absolutely certain that you will have the necessary finances to repay the loan on-time and in full. If you cannot be certain of these factors then you should avoid applying for a payday loan.
The main reason to avoid applying for a payday loan is if you are in full knowledge that you wont be able to repay the loan when your next payday comes round. Payday Lenders are not in the business of lending to unviable borrowers thus they will take every conceivable step to ensure that the borrowers they take on meet all the necessary standards and can demonstrate an ability to repay a loan on time and in full. However, as with all consumer credit, some poor borrowers can slip through the net always make sure you can afford to repay your loan on the agreed upon date and if you cant then you should always reconsider your options in favour of more appealing options e.g. borrowing from friends or family.
The second reason to avoid applying for a payday loan is if you have other options open to you. Regardless of how much a loan costs it will always cost you more than the original sum borrowed thus, if you can find a cheaper source of cash then invariably you should always pursue it. Friends and family are a terrific source of help in times of financial difficult and if you have this option open to you then invariably it is your best option, particularly if you dont have to repay more than you borrow. Always remember that payday loans are a short term solution, they are not to be used for resolving long-term financial problems.
by: Mark Jang
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