The Truth About PayDay LoansPosted by Nick Niesen on November 8th, 2010 Over the last couple of years we?ve all been bombarded with numerous emails, banners, and event TV and radio commercials offering to save our immediate cash shortage by offering so called payday loans. Furthermore, if you take a payday loan with the term of 2 weeks, until your next paycheck that is, the chance is that you won?t have enough money to make the payment and still have enough to live on. After all, if you had the money, you wouldn?t need the loan in the first place. In this case, the lending companies are more than happy to reissue the loan to you or extend its due date by another two weeks. Obviously, in order for them to cover their time of processing your loan again, they will once again charge you with the astronomical processing fee. After a while you realize that it?s been a few months and you still haven?t been able to repay the loan, yet your account is being charged every two weeks. After doing some simple calculations by combining the charges, you see that you?ve already paid more than you?ve borrowed, yet you still owe the principal. After reading this, one will rightfully have a question of how to get immediate funds without being getting into endless debt by predatory lenders. There is no one single right answer. However, there are some options available, which might come into use. If you already have payments due or bills to pay, try calling your current creditors and see if you can postpone the payment, or even temporarily freeze the payment schedule. If you?ve always been paying your bills on time, the chance is that your creditor might give you a one time break. If the situation is that you need money right away, and you can?t take it out of your budget, you can always considering borrowing from you family and friends. Like it? Share it!More by this author |