Payday Loan Times

News About the Ever Changing Payday Advance Industry

Avoiding Rollovers With Your Fast Payday Loans

Filed under: Advice — Desmond Carlisle at 10:27 am on Wednesday, March 8, 2006

The Payday Loan Times does not suggest that you apply for a payday loan online. Nor do we wish to stop you from doing so. We are simply here to provide both sides of the story to help you make the right decision. If this course of action is something you are considering, you should carefully balance the risks and rewards.

The Payday Loan RewardA faxless payday loan can be a tremendous resource for people in need of fast cash. When you apply online, you just fill out a secure form and get the payday advance you need in under 24 hours. There are no credit checks, or questions asked as far as what you plan on doing with the money. It's all yours, and you are free to take care of business.

However, a lot of people get in over their heads. The convenience factor comes at a cost, with high interest rates applying to just about every payday cash loan out there. When you extend the loan (also known as a rollover), or take out a second payday loan to cover the interest, you are heading down a slippery slope. One that may result in serious debt.

Simply put, you don't want to take out a cash advance if you aren't capable of paying it back immediately upon receiving your next paycheck. One and done. That's what this has to be if you want to make the most of your resource. The fees are steep as it is. Take out a cash advance in a second if it can help you with an urgent situation. But do not become lackadaisical when the loan is outstanding.

So think it through. Don't be afraid to ask questions of your payday lender and make sure it is straightforward about the terms of any agreement you enter into. Then plan ahead. Do what you need to do with your cash loans, then get it paid off as soon as you can. When it comes to these financial tools, the borrower's success hinges upon his or her ability to maximize the rewards and minimize the risk.

Be smart. Good luck.

6 Comments »

89

Pingback by Payday Loan Times » Blog Archive » Steps to Avoiding Predatory Lending

Tuesday, March 14, 2006 @ 2:59 pm

[...] – Loan flipping. Also known as extensions and payday loan rollovers, this refers to the practice of companies making multiple loans to cash-strapped borrowers. Approximately 90 percent of the payday advance industry’s revenue growth comes from issuing additional, larger loans to repeat customers. [...]

274

Pingback by Payday Loan Times » Consumers Keep Coming Back to Michigan Payday Loan Outlets

Tuesday, June 6, 2006 @ 2:15 pm

[...] As of Thursday, the rules in Michigan changed to protect consumers from so-called "predatory" lenders. Increased competition in the payday loan industry has driven down fees and interest rates, but in November Michigan passed House Bill 4834. Implemented June 1, the legislation caps payday advance loan fees, sets limits on individual loans and prohibits rollovers. [...]

280

Pingback by Payday Loan Times » Offers For Cheap Payday Loans: To Be Believed?

Friday, June 9, 2006 @ 7:45 am

[...] Pay the loan off on time. Avoiding rollovers is key to putting this matter behind you and moving on with life. If you extend your payday loan, you open yourself up to steeper rates and more headaches. « Payday Loan Debate, Fervor Gains Momentum in Canada [...]

283

Pingback by Payday Loan Times » Bill to Legalize New Short-Term, High-Interest Title Loans On the Table in Louisiana

Wednesday, June 14, 2006 @ 9:07 am

[...] It would create a regulatory framework in which an individual or business could get $350-3,000 in cash from a title loan company, to be paid back in 30 days with finance charges up to 25 percent for that period. A loan may be rolled over for 30-day periods up to 10 months, with borrowers supposed to pay off at least 10 percent of the principal with each extension. [...]

287

Pingback by Payday Loan Times » Minimum Wage Hike Would Decrease Abundance of Payday Loans

Wednesday, June 21, 2006 @ 7:41 am

[...] The payday loan industry has exploded in the last decade, reporting  including $6 billion in interest rates and fees in 2000. Because of the high-risk terms, borrowers often get caught in a vicious cycle of chronic debt. When they cannot afford to pay back the fees plus the principle at the end of the two week period, borrowers are forced to pay another high fee to roll over the payday loan for an additional two weeks or take out another loan to pay off the first loan. [...]

300

Pingback by Payday Loan Times » Illinois Fines Payday Loan Firm For Violations

Friday, July 7, 2006 @ 7:40 am

[...] The law limits the number of times a loan can be rolled over and gives customers an interest-free payback option. [...]

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