Payday Loans Cause Long-Run Pain

Do you ever find yourself needing just a little more money until your next payday? You’re not alone. Quite a few Americans struggle with this challenge, and they often turn to payday loans for that cash. Payday loans are usually for amounts below $1,000 and provide fast cash to people needing to pay monthly bills.

 

But loaning people money and treating them like family are two different things, and payday lenders are bad at the second part.

 

Here are three reasons why payday loans cause long-run pain:

  1. They’re expensive. Payday lenders charge interest on loans as high as 300% to 500%! That means you pay more than you do for using credit cards, which have much lower rates. Let’s say you take out a payday loan for $500. You could end up paying $1,500 to $2,500 in interest. That $500 loan now becomes several thousand dollars. If you didn’t have the $500, where will you get the rest to pay off that loan?

 

  1. They trap you. Payday loans usually have short terms. When the borrower can’t pay back the full cost by the end of the term, the lender hits them with fees. Some people must borrow from other payday lenders to pay off the first loan…leading to an endless cycle of debt.

 

  1. There’s no compassion. Payday lenders might loan money in people’s neediest moments, but it’s not about helping others. It’s about gouging you. These lenders can be vicious debt collectors bent on hassling repayment out of you if you come up short.

 

Don’t get sucked into a worse financial situation by a payday lender. There are alternatives available!

 

Kelly Community has affordable credit cards and personal loans to help you cover bills. The rates are far lower than at a payday lender, and even better than that – we treat you like family. And you always deserve to be treated like family.

 

Please check with us to see how we can help you before going to a payday lender. We don’t just loan money. We care, and we help you improve your financial wellbeing.

 

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