7 Reasons NOT to Get a Payday Loan

For many people getting a payday loan may be the last resort or it may be a quick decision just to get the money that is needed. Whatever the reason, you should definitely think about your reasoning for taking out the payday loan before you actually sign the agreement. In some instances you may feel like you are certain that you should get the payday loan however you should take some time out and think about the reasons you should not get the payday loan.

The first reason to not get a payday loan is the high cost. Payday loans can be costly. Of course you are getting the amount of money you will need to take care of your financial obligations however it may cost you a pretty penny in the end. In some cases a payday loan can cost you $15 for every two weeks of the payday loan. That means that the annual percentage rate on that payday loan is 391%. That is an extremely high cost to pay for a loan considering you could get a car loan for about 7%.

The second reason to not get a payday loan is that you may not be able to pay it back. Many people just think of the initial amount of money they will be getting and don’t look into the future. Yes it will be a good thing to get the money you need but what happens when the loan becomes payable in the next week? Payday loans are just what their name suggests. They are due on your next payday. If your next payday is in a week or two that is when the full amount of the payday loans is due. Many people will not be able to pay the full amount back in that short of time and in turn will accrue more fees that will make the loan too high for them to ever pay back.

The third reason not to get a payday loan is that it can be addictive. If you see how easy it was to get a payday loan in the first place and then not pay it off fully, you will continue to extend the payday loan payment date which will cost you more money and then once you pay off the loan you will want to take out another because you will see it as an easy way to get fast cash.

The fourth reason to not get a payday loan is that if you aren’t able to pay off the payday loan and just walk away from it the payday loan company can take you to court and force you to pay them back. You may be forced to pay them back the amount you owe them with all of the allowed fees added on to it as well as pay for the court costs.

The fifth reason to not get a payday loan is if you see that you will have the money but just after the time you need it. Let’s say you are trying to pay a bill that is due on the 5th but you won’t have the money until the 15th. Getting a payday loan is not necessarily the answer. It would be easier for you to schedule a payment arrangement with your debtor than to take out a payday loan that will be very expensive in the end.

The sixth reason to not get a payday loan is that there are many payday loan companies that are not adhering to the law and if you become involved in such a company you could be harassed and could even run the risk of identity theft.

The seventh reason to not get a payday loan is if you could find a friend or family member who would be willing to loan you the money for a lower interest you will be better off.