Can I Get My Payday Loans to Stop Charging Interest?
Simple answer: No. Just like you couldn’t get a mortgage lender or an auto loaner to stop charging interest you can’t get a payday lender to stop either. Interest is how they make their money, if not for interest no one is in the loan business and you would be stuck borrowing money from Auntie May.
How Interest Works
There would be no profit involved if you borrowed $400 then paid the same amount back a week later. If this happened a lot more people would try and borrow money and a lot fewer people would be willing to lend money. Interest is what the entire financial lending industry is based on. If you borrow $400 and pay $420 back in a week there is a discernable profit involved. If the lender makes 1,000 of those loans each year they are making $20,000 a year. Getting your payday loan lender to stop charging interest is not a realistic request.
Mange Interest
If you are having trouble paying your bills, and since you can’t stop lenders from charging you interest, you need to learn how to manage that interest. If you take out a payday loan make sure you can pay it back when it is due. If you have to extend the length of your loan you will be charged more money and you could fall into the trap of always having to renew your payday loans because you can not come up with the cash to pay them back. This is what leads to payday loans having annual APRs of 450% and such. The longer you keep renewing your payday loans the more interest is going to eat away at you. If you learn how to manage your payday loans you can effectively managed interest, this will allow you to avoid the hassles of interest. Instead of getting your payday loan company to stop charging interest, learn to manage that interest.
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