One hour payday loans are quick cash which could be availed at several banks worldwide, online or offline. Cardholders who benefit from such could withdraw from ATMs and some could get it personally at banks. These kinds of fast cash loans are served with a fee depending on the amount of loan you wish to apply for. This type of loan is helpful yet unadvisable to you especially when you earn a small income. There are numbers of people who have already been a victim of one hour payday loan and have suffered from debt for the rest of their lives. Below are some of the disadvantages of applying in such loan.
One Hour Payday Loan Companies Charge High Fees
Not only are the interest rates of a one hour pay day loan are high but also the processing fees and other charges too. Fast cash loans interest rates ranges from 30 percent to 150 percent of the amount loaned. That is, if you wished to borrow 75,000 dollars multiplied by, say 50 percent, you’ll have to expect that you will only withdraw a total of 37,500 dollars or pay the interest on or before your due date. So, if you earn an income of less than 75,000 dollars a month, you’ll probably be losing too much. They have also lots of agreements to be signed and because you will only be given a short time to borrow the cash and you will not be required to submit a collateral, more fees will be charged.
“Short term” Loans Allows you to pay for a Maximum of 21 days
One hour payday loans as it is described as a short term loan has only 14 days to 21 days for repayment date. If you are a businessman, this is really not so advisable because you write your cash flow and income statement in a one-month basis if not quarterly basis. Fast cash loans will only lead you to miserable debt. Instead of earning for your business, you end up losing more than your profit.
Full Payment is a Must on or before Due Date
Unlike other types of loans, one hour pay day loans will give you headaches. Because you have only a short time to earn for the payment, you will be pressured and stressed thinking of where to get your payment. Your fast cash loan will be like a nightmare to you when the cash you expect to use to pay it will suddenly be out of nowhere. Maybe, you expected to collect that certain amount from someone who owes you. What if he suddenly appeared and tells you he doesn’t have the money because he used it in an emergency he is responsible at? You will totally be forced to withdraw your remaining savings or worst, borrow again to a one hour payday loan lender you know.
You Will possibly be Harassed until you Pay in Full
Your one hour payday loan has solved you first problem. You have paid emergency bills, and brought necessary household equipment But, you cannot pay before due date so you have to tell your fast cash loan lender. You will then start to receive harassing calls and your record as a borrower will be in bad situation. The one hour payday loan company may leak that record to other lenders and you will be blocked. So, you did not only end up having a surprisingly high debt, but also a miserable life answering those calls and explaining yourself around other people.
Most of government employees around the world are prone to failing in good financial management because of one hour payday loans. Some businesses also went bankrupt and end up selling their investments to pay for their fast cash loans. Others fall to depression for losing their businesses. So, in order to be debt-free, you should try your best not to avail of such loans for you will only regret it in the future. There may be lists of advantages for applying for one hour payday loans and numbers of reasons to do such but remember that when you borrow fast cash, you have to be ready to face these consequences too.
Author: Charlyn June F. Lidua