American consumers long ago decided the immediacy and convenience of spending on plastic outweighed any drawbacks to come, and, even when they have no choice but to ask for credit card help from professionals, they want to know about future borrowing potential. There’s no end to the credit offers bombarding the public from every possible angle:
- at the checkstand,
- online,
- over the phone and
- through the mail –
Pitching low “introductory” interest rates or “instant” approval. It’s remarkably easy to acquire a wallet full of credit cards, and the average United States consumer has between six and ten active accounts, depending upon which study you choose to believe.
There’s no denying that, in this unfavorable economic climate and waning job market, people with an urgent need for unsecured cash resources have a tough road to travel. The natural consequences of bleak times bring about anxiety and panic for debtors, forcing them into a vulnerable state in which decisions are often made in haste and with disastrous results: pay day loans to pay creditors' due dates shining as perhaps the worst culprit.
For some borrowers in need of credit card debt help, the appeal of the payday loan lies in its
- fast and easy approval requirements
- there is no credit check when applying,
- all that is typically needed to qualify is
- Checking account
- Source of income.
Once approved, the customer writes and submits a post-dated check for the entire amount owed, plus a finance fee (somewhere around forty dollars) in exchange for cash. The entire process takes little time, but the price paid for the service is steep.
Terms of Payday loan: The terms of payday loans demand that the total be repaid in full within a predetermined period of time, usually fourteen days. Failure to meet the deadline results in expensive penalties fees.
Given the astronomically high Annual Percentage Rates associated with payday loans (anywhere from four to five thousand percent), outstanding balances explode into relatively massive debt totals, and those employing a payday loan for credit card debt help run the risk of increasing their burdens.
The unfortunate truth is, a lot of people who find themselves saddled with a skyrocketing payday loan tally are the very ones who have the most difficulties with paying their debts – statistics confirm that fifty one percent of Americans who use this type of loan earn an annual income below ten thousand dollars. With interest rates among the highest of any kind of loan, it’s entirely possible (and advisable) to take the counterproductive yet necessary measure of incurring even more credit card debt in order to satisfy a payday loan rather than allow it to rapidly soar to towering heights.
The decision to reach out for help with your debt is not one that's easy to make. You were raised to "do the right thing", but now it’s nearly unbearable. You struggle along while your creditors are turning up the heat. And now you’re at the point where the late fees, penalties and interest expense make it impossible to keep your head above water.
Ask yourself this. If you could eliminate your debt without permanently damaging your credit, why wouldn't you?
