Using Payday loans is Financial Suicide

piggy bank
A simple online loan from a Payday lender is a simple way to financial ruin.

Next time you approach a Payday lender for financing, ask yourself, “Why am I getting this easy cash?” and “Why are they giving me money without checking my credit history?”  Payday loans do not help people out of short term financial jams, they only make things worse. If you want to understand why, there are a few reasons and this article will explain:

1. The demographic that is taking the Payday loans in the first place, yes, it may even be you, is vulnerable to begin with. Payday loan companies target hard working, but vulnerable Canadians, who live paycheque to paycheque and cannot sustain the high interest costs associated with the short-term funds.

2. Payday loan companies charge insane interest rates to borrow. You may think you are borrowing $200 dollars and it only costs you $20, but when you need to come up with the money next week, that’s an interest rate in excess of 500% APR, and IF YOU take out a few of these loans, before you know it you’re in a payday loan trap.

There is an epidemic in this country, and it’s being driven by greedy Payday loan companies, many of which are making it very easy to obtain an online loan. Next time you visit a Payday lender, ask specifically what your APR is, or your annual percentage interest rate associated with your loan. You will be shocked to learn that it is in the several hundred percent range. We see individuals filing for bankruptcy all the time because they cannot get out of the Payday loan cycle. This has a serious long-term negative effect on your credit. You may think that because Payday loan companies are regulated, they are ethical. This couldn’t be further from the truth.

Read also:

If you are in the payday loan cycle you must break it. urLoan provides online loans with a simple application process and our loans are longer term in nature and designed to fit your budget. Our approval times are typically 1-2 days and we design our loans to specifically help you move forward with your life. Contact us today at 1-855-723-5626 ext. 1 to discuss your options.