Are Payday Loans in Temecula a Hassle?

Payday loans are small short-term loans backed by your paycheck. In order for it to work, you apply for a loan and list your next two or three pay dates on the application. This also includes a postdated check for the loan amount plus interest and fees comparable to APR of 300-400%. On your next payday, the lender collects the balance, unless of course you choose to roll the loan over to your next payday.

Why these cash loans in Temecula are popular? Mostly because they don’t consider your credit history, and people with bad credit can still get approved as long as they have a source of income.

Why payday advances are a hassle? When the loan gets extended, they get rolled over, and the fees really add up. Despite lenders allowing customers to extend their loans to the next payday, they still have to pay the fees plus any accrued interest. Therefore, the borrowers become trapped in a loop of paying fees and high interest. According to a Pew report, fewer than 2 out of 10 borrowers can afford to pay off the average loan when it comes paying it back.

This doesn't mean there aren't alternatives. Collateral loans from pawnshops have been on the rise, and even wealthy people use them for the ease and convenience. Simply using an article of value in exchange for cash is the model. The borrower can sell or take a loan on their valuables of choice. The worst case scenario would be losing the article, however, your credit remains untarnished and your payroll check won't be garnished. With interest rates as low as 2% it is worth inquiring.

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