The 6 Most Common Pitfalls of Payday Loans, and How to Avoid Them #infographic

 The 6 Most Common Pitfalls of Payday Loans, and How to Avoid Them #infographic

Every year, approximately 12 million Americans depend on payday loans to manage revenue volatility or deal with unexpected emergencies. While payday loans are used to address a very true issue, predatory payday lenders often abuse customers. It is not unusual to read horror stories about individuals charged in excess of 1000 percent APR or stuck in debt traps because of restricted regulation and the absence of better choices.

Once a person is stuck with endless rollovers and concealed charges in a downward debt spiral, they can rapidly see their credit damaged and bank accounts emptied, particularly if they take a loan from a particularly unscrupulous lender. Payday loan strategies such as concealed charges, rollovers, and unreasonably elevated interest rates have led 22 countries in the United States to restrict or completely prohibit payday loans.


There's merely no other choice for many individuals. For someone impacted by low salaries, earnings volatility, or an unexpected emergency, a payday loan may be the only way to bridge their shortfall in revenue. Although it may not fix the financial difficulties of a person altogether, it provides a temporary solution.

Unfortunately, more than 80% of payday loans are' rolling over' into a fresh loan or the borrower will take out another loan instantly after paying off their old loan. If a lender has no measures in place to avoid rollovers and offers no flexible alternatives for repayment, the economic catastrophe becomes an inevitable reality for most borrowers.

 The 6 Most Common Pitfalls of Payday Loans, and How to Avoid Them #infographic
infographic by:www.lendup.com

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The 6 Most Common Pitfalls of Payday Loans, and How to Avoid Them #infographic  The 6 Most Common Pitfalls of Payday Loans, and How to Avoid Them #infographic Reviewed by Muhammad Ahsan on October 12, 2019 Rating: 5

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