Abusive debt collection practices are one of many potential payday loan pitfalls.
Unethical lenders may threaten you, harass you, reveal your debt to third parties, try to get you fired or file civil suit against you in small claims court…
(More information… )
Payday loans do not help your credit rating.
Paying them back on time does nothing for your FICO (Fair Isaac Company) score.
If you fail to pay them back, however, payday loans can harm your credit rating…
(More information… )
The most dangerous pitfall of payday loans is the Debt Treadmill.
The debt treadmill is when you have only enough income to pay off the interest on your loan but not the principle.
How does one get on the debt treadmill? Let’s do the math…
(More information… )
Faxless payday loans are convenient for people who do not have access to a fax machine.
This convenience comes at a price.
‘No fax’ cash advance loans tend to be slower, more indiscrete and may expose your personal information…
(More information… )
If you have an outstanding balance on your credit card, paying off half the principle will reduce monthly interest fees significantly.
If you have an outstanding payday loan, on the other hand, it is all or nothing.
Payday lenders do not accept partial payment.
Although this might not seem like much, no partial payment is a dangerous pitfall of payday loans…
(More information… )
Many payday loan transactions are based on personal checks.
Borrowers write a personal check to lender for amount borrowed plus fees and receive cash. Lenders hold the check until next payday. At that point, borrowers can:
Sounds easy enough. If you are not careful, though, you could face stiff penalties, lose your checking account or even face a lawsuit…
(More information… )
Online payday loans put your personal information at risk.
Internet lenders do not have physical access to your identification and other documents so they need to ask for a lot of personal information - much more than they would need if you were applying in person.
Sometimes, this leads to privacy invasions and personal information abuse…
(More information… )
Before you try to stop payment on a payday loan check, be aware of the pitfalls.
Stopping payment on checks will incur expensive fees and the payday lender may try to cash the check when the stop payment order expires…
(More information… )
When you sign for a payday loan, you sign away significant legal protections.
Many payday loan contracts include clauses that try to keep you from filing a lawsuit in a court of law…
(More information… )
One common pitfall of payday loans is The Month After.
When you repay the loan on your next paycheck, will you have enough money to survive?
Let’s do the math…
(More information… )