How to Simply Understand the Payday Loan Cycle

Are you in need of money? Going for fast cash would literally mean “fast cash”. Majority of the people would find fast cash or money borrowed from payday lenders as the answer to their need for immediate cash solution. However, there are several things that you have to understand when it comes to the payday loan cycle. This mainly evolves in the amount that you have borrowed, the interest percentage that the lenders have placed on top of it and the number of days or months that you are obliged to pay it in full.

Nowadays, there are already a lot of payday loan companies that you can choose from. Given the cycle, you have to make sure to enrol yourself in the company that offers lowest interest rates, fair charges and reasonable fees. Though it is hard to find one these days, but always expect to have bigger charges than the exact amount that you have borrowed. On the other note, to fully understand how the cycle works, just imagine fishing. You need to have bait, the catch itself and a trap. The bait would represent the “quick cash” that you needed the most; the catch would be the number of days that you are obliged to pay the full amount and lastly, the trap would refer to the re-loans that you are pushed to just to cover up your other payables.

Imagine, if you have borrowed the amount of £500 and your total earnings in a month is only £388. Then how are you supposed to pay the entire amount in just 6 weeks along with the interest? That is why other loaners would opt to have another re-loan just to have extra money to pay up the balance and then start over again until the cycle never ends.  This may sound scary most especially if you do not have enough income or other sources of income to sustain your daily needs and other finances.

That is why others who have been into this cycle would generally look for a second job. From there, you can save up extra to help pay the emergency money you have borrowed until such time that it will be paid in full. From there on, you have to learn your lesson in saving and be thrifty. Emergency money should be intended for real emergency and not for other useless transactions. You have to control your impulses as well and train your mind to never be into that kind of situation again.

The payday loan cycle is simple to get in but it’s difficult to find a way on how to get out from it. The only solution though is to have self control, save up and don’t be easily tempted by anything that is not important. Money is earned the hard way if you have a lot of debts to pay off. Come to think of it. How are you going to fit in your salary if your debts are bigger that the amount that you are earning. Therefore, be practical and learn even from the testimonies of others.

http://ift.tt/2a7ghy4