Dangers of Payday Loans

It’s no secret that finances can put a huge strain on a relationship. According to a study cited in this CNBC article, finances are the leading cause of stress in a relationship. Thirty­five percent of all respondents “experiencing relationship stress said money was the primary cause of friction.” With money being a leading cause of relationship stress, it’s no surprise that the stress of mounting payday loans can have a negative effect on your marriage.

In addition to the stressors of everyday life and relationships, payday loans create a heightened sense of overwhelm, anxiety, and fear. Financial insecurity creates a sense of fear for many.

The Dangers of Pay Day Loans

The financial insecurity brought on by payday loan debt creates even more feelings of fear, anger, and frustration. This makes it extremely difficult to maintain a healthy and happy relationship and marriage. Payday loans don’t just create financial insecurity, though. With payday loan debt comes unwarranted harassment from payday lenders, unmanageable debits from your bank account, and for many, potential scams and fraudulent loans. The list of negative repercussions from payday loans is long, and they affect every aspect of your life.

Payday Loans Can Affect Your Relationship With Your Spouse

The payday loan trap is stressful, overwhelming, and scary. Dealing with aggressive payday lenders, harassing phone calls, and constant debits from your bank account can lead to high levels of stress and anxiety for any person. When you add all of these stressors onto a marriage, it can take a toll on your relationship.

Are you hiding payday loan debt from your spouse? Are you constantly arguing with your spouse about payday loans, lenders, or financial instability caused by payday loans? Are payday lenders creating unnecessary stress in your life that is bleeding over into your marriage? If the answer to any of these questions is yes, your payday loan debt could be harming your marriage.

The payday loan trap can seem daunting and nearly impossible to get out of. Escaping the trap and taking back control of your finances is easier than you think, though. The first step to getting out of the payday loan debt trap is to stop taking on more loans. Then, find a payday loan consolidation company that you can work with to consolidate your loans, get out of debt, and get back on track. If you’re currently struggling with the overwhelm of payday loan debt, check out our post “Top 3 Tips for Getting Rid of Payday Loans … Once and For   All!”.

At Real PDL Help, our team specializes in payday loan debt relief. We work one-on-­one with people who are struggling with mounting payday loan debt, unmanageable monthly payments, and aggressive lenders. If your life and marriage are being affected by payday loan debt, contact us today. We can help!

If you’ve submitted your personal information when applying for an online payday loan, chances are you’ve been victim of someone attempting to illegally collect on fake payday loan debt or someone falsely promising a payday loan debt settlement. It’s important to know the difference between legitimate payday loan consolidation companies and those that are out to get your money.

We work with hundreds of clients every single day who have received payday loans and are looking for payday loan relief. Nearly 100% of them have been victim to some payday loan scam. When applying for payday loans online, you’re submitting personal information (social security number, address, DOB, etc.) that unfortunately gets in the hands of untrustworthy people. That’s why it is so important to know what to look for in legitimate payday loan consolidation companies.

So, how can you protect yourself, find payday loan relief, and eliminate payday loans?

Be aware!

If you receive a phone call from someone claiming that you owe money for payday loan debt, be cautious. Be aware that this could be a scam. These scam artists are good at what they do and can trick you into giving away your money if you’re not careful.

They have all of your personal information and may even know the information for the legitimate payday loan consolidation companies who you’ve taken out loans with before. They may claim to be representatives from that payday loan company and that they’re here to help you eliminate payday loans. Their job is to lie, and you should be aware of that.

They will do everything they can to convince you to give them the money they say you owe them right then. And if you don’t pay up, their next tactic will be to scare you. They may convince you that you’ll be taken to prison, or that they’ll be filing charges against you, or that the sheriff is coming for you at work. We’ve heard it all.

Do not discuss anything until you receive a written confirmation of the debt.

Ask for a written confirmation of the debt immediately and do not discuss anything until you receive a written confirmation of the debt. If this is a legitimate payday loan consolidation company that you do owe money to, they will be willing and able to send you written confirmation of the debt they’re requesting payment for. Reputable companies won’t require you to eliminate your payday loans on the phone immediately.

Do not give or confirm any personal or confidential information.

These scam artists are good at what they do, and they have all of your personal information. They may seem credible, and you may be scared. Whatever you do, though, do not give or confirm any of your personal or confidential information with them over the phone.

They may ask for your bank account information or credit/debit card to process the payment they’re alleging you owe. Do not give them this information over the phone. Do not give them or confirm any information until you receive written confirmation of the debt and have ensured that this is a  legitimate payday loan consolidation company.

They may promise you payday loan relief, but they are really just after your money. Don’t fall for their tricks and do not give them any information, regardless of what they say.

File a complaint with the FTC.

If these fake payday loan debt settlement companies won’t leave you alone, it’s time to take action against them and get some payday loan relief. Filing a complaint with the FTC should be your next step.

The Federal Trade Commission (FTC) enforces laws to protect consumers from deceptive and illegal payday lending operations. If you are contacted by someone who you believe has falsely obtained your information or is posing as someone they are not and attempting to collect money they’re falsely due, file a complaint with the FTC right away.

Don’t fall for their payday loan debt settlement scams. Educate yourself on your rights and if something feels wrong, listen to your gut and file a claim.

Be cautious of applying for online payday loans.

Once you’ve submitted your personal information to an online payday loan company, you’ve opened yourself up to potential scams. Be wary of applying for payday day loans and do your research to find legitimate payday loan consolidation companies. The short-term gain is not worth the long-­term struggle.

If you’re currently struggling with debt and want to eliminate payday loans, our team is here to help. At Real PDL Help, we work one-on-one with our clients to help them get some payday loan relief and regain control of their life (and finances). Contact us today!

The payday loan trap is a very real thing, and so is payday loan addiction. The average payday loan borrower takes out 8 loans per year. Psychology Today defines addiction as “a condition that results when a person … engages in an activity that can be pleasurable but the continued use/act of which becomes compulsive and interferes with ordinary life responsibilities.” While many people turn to payday loans due to financial hardships, for some, it quickly becomes a compulsive behavior that takes over their finances and their lives. We often think of addiction in terms of a physical dependence that is “characterized by withdrawal symptoms”, but that’s not the only case.

Danger: Payday Loans are Addictive!

According to American Addiction Centers, “a behavioral addiction can occur with all the negative consequences in a person’s life minus the physical issues faced by people who compulsively engage in drug and alcohol abuse. It is the compulsive nature of the behavior that is often indicative of behavioral addiction…” Many people first turn to payday loans for help getting through a financially strapped period of time. They’re low on cash and an unexpected medical
bill or expense pops up. So, they’re in need of extra cash to get them through until payday. What begins as a solution to a need can slowly become a compulsive behavior. A person struggling with this “may find the behavior rewarding psychologically or get a ‘high’ while engaged in the activity but may later feel guilt, remorse, or even overwhelmed by the consequences of that continued choice,” says the American Addiction Centers.

We work with hundreds of clients every day who are desperate to escape the payday loan trap. They’re living in fear of aggressive payday lenders and have been watching their entire paycheck get eaten up by payday loans month after month after month. For some of these people, what began as a financial need quickly became a compulsive behavior. More money feels good. And payday lenders are ready and willing to lend money to most anyone. Taking out payday loans compulsively in an addictive manner is occurring more often than one would think. And unfortunately, the payday loan addiction leads to disastrous circumstances.

According to findings in a Detroit Area Study (DAS) , when payday loan users were compared to similar low to moderate income households in Detroit who did not use payday loans, the DAS found almost three times the rate of bankruptcy, double the rate of evictions and phone cutoff, and almost three times the rate of having utilities shut off. In another study done in Texas, researchers found that borrowers who received payday loans were twice as likely to file for bankruptcy in the following two years when compared to payday loan applicants who were turned down for payday loans.

If you find yourself falling deeper into the payday loan debt trap and compulsively taking out more and more loans, you’re not alone. We can help. Give us a call today . Our team will work with you to, first and foremost, get the payday lenders out of your bank account so that you can take back control of your finances. We’re here to support and guide you throughout the entire process. We’ve done so with hundreds of people before and have the experience and knowledge you need to end the debt trap cycle.

With new upcoming rules and regulations, the payday loan industry has been all over the news recently. And while most agree that everyone should stay far, far away from payday loans (along with all their dangers) and that taking one out is quite possibly the worst financial decision to make, there’s a small minority in favor of them. There’s lots of different opinions one can have. Regardless of your stance on the topic, though, there’s a real story behind all of the opinions. So, we’re sharing the facts … the real story of payday lending.

The truth is, payday loans come with insanely high interest rates!

The annual percentage rate (APR) for payday loans averages 400% or higher. According to this report by the Consumer Federation of America (CFA), some loans have been as high as 780%. It’s highway robbery! Another study found that borrowers were spending $520 in interest with an average loan amount of only $375!

Is the long­term struggle and crippling cost worth the short­term gain?

The truth is, the payday loan debt trap is very real!

The average payday loan borrower takes out 8 loans per year. The payday loan trap is too easy to fall into and far too difficult to get out of. It’s a trap that will leave you broke, stressed, and overwhelmed. If you do a quick internet search for payday loans, you’ll see story after story of someone who fell into the payday loan trap with a small $500 loan to help “pay the bills” and found themselves in tens of thousands of dollars in debt. Payday lenders are aggressive and so are the fees and interest that you’ll rack up on even a small payday loan.

A report by the Consumer Financial Protection Bureau (CFPB) found that 80% of payday loans are either rolled over or renewed. Four out of five payday loans are either rolled over or renewed within 14 days! The majority of these loans are made to borrowers who renew their loans so many times they wind up paying more in fee expenses than the total amount of money they originally borrowed.

If you’re still skeptical, only 15% of borrowers actually repay all of their payday debts without re-­borrowing within that 14 ­day period. The fact is, the payday loan debt trap is very real.

The truth is, payday loans are one of the most expensive forms of financing.

For every 3 out of 5 payday loans, borrowers end up paying more in fee expenses than the total loan amount owed. And with interest rates 400% and higher, you can understand how taking out one small payday loan can become a vicious cycle. Due to high interest and fees, people aren’t able to pay off their loan in time while also covering other necessities. So, they take out another loan to cover the first. And they do so again and again and again.

The truth is, payday loans are not your only quick cash option!

We get it. You’re in a pinch. Cash is short and you still need groceries and you have to pay rent and electricity. Maybe you lost your job. Maybe you went from two incomes down to one.

Whatever the reason for needing extra cash fast, payday loans are not your only quick cash option. There are dozens of ways to get cash fast. For several helpful alternatives, check out our previous post, “8 Ways to Avoid Needing Quick Cash Payday Loans”.

These are the facts. This is the real story of payday lending, and it’s no fairy-tale with a happily ever after. If you’d like to learn more about the payday loan industry, check out our previous post, “10 Surprising Facts About Payday Loans”.

Payday loans are like quicksand. They’re easy to fall into, but nearly impossible to get out of. While most people who take out payday loans have every intention of paying them back within the two-­week loan term, it rarely ever happens. Most people continue to roll over and renew payday loans, accruing more and more debt. One financial burden leads to another and before they know it, they’re in so much debt that it seems next to impossible they’ll ever be able to pay it all off. If you’re overwhelmed by payday loan debt, regardless of your income level, it is possible to get out of debt. The relief of reducing your stress and having control of your finances again should be reason enough to get out of payday loan debt. But in case you’re not convinced, here are 3 more must­-read reasons to get out of payday loan debt.

1.  You’re selling your future!

Maybe you thought you were just taking out a quick loan while cash was short. You had had no idea that months later you would be financially stuck, unable to get rid of mounting payday loan debt and fees. Your current income isn’t all you’re losing to the payday lenders, though. You’re also losing your future. The longer you remain stuck in the payday loan debt trap, paying fees and interest just to get by, the more of your future you’re selling to the payday loan company. All of that money that’s going towards insanely high interest rates and ridiculous fees could be building the future that you dream of. Do you dream of buying a home one day? Would you like to send your kids to college? Are you ready to travel? Do you want to retire one day? You could be saving for all of these things. Instead, your money is funding the future of the payday loan company.

2.  Your health is taking a hit!

When you’re in over your head in debt, are dealing with aggressive payday lenders in your bank account, and are receiving aggressive, non­-stop phone calls, it’s natural that you’re stressed.

Your stressed out and completely overwhelmed. You may even be dealing with anxiety or depression. Stress can lead to all kinds of health problems such as chronic pain, diabetes, and ulcers. Long­term stress can even result in hypertension, heart attack, or stroke. When you’re stressed and overwhelmed, you lose sleep. You wake up in the middle of the night worried, panicking about how you’re going to pay the bills. Sleep is vital to your health. A lack of sleep can have lasting consequences on your long­term health, leading to issues like hypertension, heart disease, and diabetes. Payday loans are affecting more than your bank account.

3 . Your marriage (and your family) are suffering!

When one area of your life is in turmoil, all areas of your life are in turmoil. Unmanageable debt, aggressive payday lenders, and financial insecurity affect your marriage, your family, and every relationship in your life. Stress and financial overwhelm affects those closest to you most of all, like your spouse and children. The burden of payday loans can ruin those relationships. The stress of one area of your life can spill over into all areas of your life. So, when you’re stressed

and overwhelmed because of financial debts, that stress affects your relationships with all of those around you.

It’s time to end the payday loan cycle today. At Real PDL Help, we work one­-on-­one with our clients to help them get out of payday loan debt and regain control of their life (and finances). If you’re struggling with payday loan debt, contact us today!