When you first applied for a payday loan, it was based on sound reasoning–you and an unexpected financial emergency and needed cash fast. You knew, at the time, your next paycheck would be more than enough to cover it.
Once your next payday arrived, you were still barely making ends meet. Maybe it was due to leftover expenses from the original emergency or maybe you hadn’t expected the finance charge of the first payday loan to be so high. Regardless of the reason, when offered an extension or even a second loan, the offer seemed too good to pass up.
Juggling two payday loans, your finance charges total nearly $200 every two weeks. Even with the best intention of paying down the principle, it’s hard to find the cash to begin at that rate.
How do you break the payday loan cycle? As a payday loan customer, there are steps you can take to get your life back if you’re feeling overwhelmed.
First, check your state laws. Find out what is legal and what isn’t legal in your state. While you are responsible for the principle amount you borrowed, you may be able to negotiate the finance charges or smaller payments over a longer period of time. Don’t hesitate to communicate with the lender.
Whatever you do, do not be tempted by an offer of a new loan. While the extra cash might seem like a lifesaver in the short term, it will only compound the problem in the longer term.
State Attorneys General have taken a hard stand against payday loan companies acting outside of the law. In many cases, they have ordered those engaging in fraudulent lending practices to cease operations altogether. States are cracking down on payday loan providers who charge interest rates above the legal limits and those who offer loans to individuals already carrying more than the maximum allowable by state law. In spite of these actions there is still a lot that needs to be done to stop predatory lending.
Ready to stop the cycle once and for all? Let me show you how I did it. Click Here to learn more.
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