Why You Need to Put Payday Loans in the Past
Are you still trying to make the most out of payday loans? Has living from pay check to pay check made you feel that you have no other choice but to keep getting payday loans? If you can’t help but drop your shoulders, sigh and say yes to these questions, it’s time you turned to another type of loan.
Payday loans may offer you a fast and easy answer to your pressing financial woes, but in the long run it really isn’t the best solution for you. In reality, it can be more of a problem than a solution.
The Problem with Payday Loans
Payday loans give those with financial woes a very tempting offer. They guarantee fast cash without too many requirements, and you can pay them off on your next payday. There’s certainly nothing wrong with that, except when you can’t make the payment.
You see, the fees that come with payday loans can be very steep, some would consider them the steepest among all types of loans. To clearly illustrate this, let us say you were to take out a payday loan of $100 with a standard fee of $15. Fifteen dollars doesn’t sound so bad, but when you divide it among the 14 days until your next payday, that’s over a dollar you have to spend each day, or more than $365 in a year. That means that you have an Annual Percentage Rate (ATR) of over 360 per cent! Compared to common credit and loan ATRs which are usually no more than 25 per cent, that is definitely one large leap. If you aren’t able to pay a payday loan, you could end up owing more than three times what you borrowed, adding significantly to your financial burdens.
Payday loans have, through the years, garnered a very negative reputation because of this. With ATRs ranging from 300 to 900 per cent, it definitely isn’t a very wise financial solution for many, especially those who struggle from pay check to pay check. So what other options can they rely on?
Better Loans for Brighter Tomorrows
Thankfully, there are far better loan options available to borrowers today, such as our Small Amount Credit Contract. Don’t be fooled by its long and seemingly intimidating name. Small Amount Credit Contracts have a lot to offer borrowers. They are somewhat similar to payday loans in terms of ease and convenience but are much more manageable. With Small Amount Credit Contracts you can borrow as much as $500 but instead of paying off the entire amount at the end of 14 days, your repayment is spread over a period of 30 to 40 days, giving you more time and smaller, more manageable payments. This effectively puts a stop to surprisingly large payments at the end of 14 days. With Small Amount Credit Contracts there are no surprises and after complete repayment you can immediately apply for another Small Amount Credit Contract.
If you’re looking for larger loans, you can always try our fast cash loans and unsecured personal loans. You can borrow up to $5,000 and still be fully capable of repayment with our easy and manageable repayment schemes.
Forget sinking deeper into debt with payday loans. Make ridiculously expanded loan payments and vicious debt cycles things of the past by choosing the better and wiser loan options here at Money3.