Using a payday loan can seem like a deal with the devil. After signing and getting your money back, you might be wondering, “What have I done?” “
TEMPLE, TX – We’ve all been there at some point in our lives. You are struggling financially for a number of reasons and just need some quick cash.
However, getting one of these easy to obtain no credit checks could make you a customer for longer than you think.
With interest rates ranging from 200% to 300%, up to 400%, and special “teaser” rates offered, these quick cash loans can be easy to obtain, but very difficult to repay.
“If you ask me, my personal opinion is that they are placed in certain areas, for people who may need income more frequently or who may need money quickly, it’s easy to get,” said Rolandus Johnson (Rojo), a financial planner, told 6 News, “And so what you end up getting are people who come in and need that extra income and then they’re in trouble because now they’re l ‘have, and they did everything they had to do and now they can’t pay it back. ”
It’s by design to keep you as a customer in perpetuity.
“Rojo” went on to say, “It almost kills your financial future. Because the interest rate is so high. And then the extra money you would have had goes to that so you can’t invest and there is. has a lot of things you can’t do. So I would say, and that’s for sure, here stay away if you can. I know things do happen, but stay away from this type of loan . “
Unfortunately, some Americans cannot stay away. Even with that advice, according to pewtrusts.org, twelve million Americans take out payday loans each year, spending $ 9 billion in loan fees.
Many of these types of lenders are predatory, as Rolondus told us, “Uneducated on how loans work. The way credit works and these different things. they’ll get the money they need without knowing it or even reading the fine print that you know if you take out $ 500 you’re going to pay me back $ 2,500. “
And here’s a little perspective for you.
In 2017, there were 14,348 payday loan stores in the United States, while there were only 14,000 McDonald’s stores. The typical payday borrower is in debt five months a year. And the average income of payday loan borrowers is $ 30,000 per year.