Yes, it is that time of year, and hopefully by sharing a bit of knowledge about this business people will not be getting payday loans for Christmas!
This is the time when all the talk of easy cash and money in your account within 24 hours sure sounds good, but let’s put a bit of a reality twist into this and see what it really looks like,
The quick sell
What you hear when these companies advertise for the holidays is how you will have enough money to get those gifts you need, and maybe a bit left over to treat yourself and your significant other with a bit of luxury at Christmas that you normally would not be able to afford.
This all sounds great, and you only have to make one payment on your next payday. It is a very hard deal to ignore, especially if your credit is less than perfect and getting a conventional loan is out of the question.
But make no mistake about it, it usually never goes this way. Let’s take a look at how the real outcome plays out.
The reality
What usually happens more times than not is the customer has borrowed more than they can pay back, and they end up rolling the loan over. Before you know it, their next payday rolls around and again they do not have enough to even pay down on the loan, so they roll it over again or borrow more to make the payments. This creates a vicious cycle and turns into a trap.
This happens on average 4 to 5 times, and at the tune of about $150.00 minimum a roll over they soon become trapped. Then their bank account becomes in the negative and the bank charges begin to build up and well, you can guess where this ends up.
If the customer is smart at this point they will stop all payments and contact a payday loan consolidation company. By now they are in way too deep to handle this by themselves and they are in need of some serious help.
In Conclusion
Hopefully the above information will help clarify why we should never take these loans out for any reason, and what you can do if you do get trapped.
If you are caught in the payday loan trap and need help give us a call toll free at 877-734-6700 or fill out the form on this site for a free no obligation quote on how we can help you.
Do yourself a favor and make sure you do not end up paying for those Christmas gifts for the next year or longer! If you can afford to buy presents then by all means do so but if you have to go into debt to get gifts be very careful.
