Payday loans are a type of loan that come with a laundry list of pros and cons. As they are so tricky, potential borrowers should sit down and ask themselves some important questions when considering one. The most important: are online payday loans safe? While some payday loans can be made in person, there are a variety of website where you can take out one. So, are they safe? Let’s take a look.
Privacy Concerns
As with anything on the internet, online payday loans do pose risks. The biggest risk is a threat to your privacy. Many online payday loan websites require information such as your bank account number and your social security number. Without even getting into the potential borrowing/payment risks, this could ruin you if the information gets into the wrong hands. If you are considering an online loan, it’s important to be certain that you aren’t falling for a scam. In addition, most online payday loan websites are lead generators, which give out or sell your information to prospective lenders. The more people that have access to your information, the bigger the risk to your privacy.
Payday Loan Danger
Another set of risks are connected to nature of payday loans themselves. Payday loans are short-term with the majority requiring payment within weeks. That means the entire loan, plus interest, must be paid off within the span of a week or two. This can end up putting you into more debt if payment is an issue. Not only is the short-term payment a risk to your credit (even if your credit isn’t great), but it can end up costing you much more than you initially needed. If the payment can’t be made within the agreed-upon timeframe, the borrower could end up paying the interest for weeks before even making a dent on the principle. Finally, with the short-term payments and high interest rates, payday loans tend to produce a cycle of borrowing to pay off debt, digging you an even deeper hole.
Progressive Debt Relief
If you have been caught in the cycle of payday loans or have other unsecured debts, consider Progressive Debt Relief. We have the tools to help you manage your debt so you can work towards bettering your financial future. For a free consultation, contact us at 1-877-590-1847.
