I have two words when it comes to payday loans: RIP OFF! This type of lending is what I would classify as TRBL debt. T-R-B-L. Terrible. This type of lending is awful, and it should be illegal! So how do these loans work exactly?
First, these businesses set themselves up in sections of town where people have little money and little education. They prey on people who are in a financial bind and offer small loans of 200 or 300 dollars and then charge exorbitant amounts of interest. I have seen some interest rates as high as 782%!
As if paying these ridiculously high-interest rates wasn’t enough, these companies also force people to refinance these loans as often as every two weeks. This means that people are being continuously charged refinance fees on top of the crazy interest rates! Do you agree with me now? This type of lending should be illegal!
No matter how bad you think your financial situation is, I strongly urge you, do NOT fall victim to a payday loan. This type of lending is designed to trap you into a situation that you literally cannot win! Don’t let this happen to you!
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