Subprime Blogger

Your Mortgage News Source

No Checking Account Loan – Payday Loans will Help Pay Bills?

Posted on | November 2, 2009 | No Comments

Getting a payday loan with no checking account is very attractive to some bad credit borrowers.  These borrowers feel that getting the extra cash they need to pay off bills can be done easily and effectively through payday loans.  Unfortunately many of these borrowers do not realize how much money can be racked up through fees when you sign a bad credit payday loan.

When you sign a bad credit payday loan you are essentially telling the payday loan company that you are going to pay back the full amount of the loan plus fees with your next paycheck.  Most states regulate these fees so companies cannot charge whatever they want in fees.  In most states you will find that the fees are limited to $10 to $15 for every $100 borrowed.

This may not sound like a lot of money but if you are borrowing several hundred dollars this can add up quickly.  You also need to realize that each time you do not pay off your bad credit payday loan you are going to find that these fees reset.  If it takes you three paychecks to pay off a $100 loan then you are going to pay fees between $30 and $45.

WIth this in mind it is essential that you pay off your bad credit payday loan with your first paycheck.  Most borrowers are quite confident that they can do this but the statistics show otherwise.  Over 60% of bad credit payday loan borrowers do not pay their loans back with their first paycheck.  If you have been bad with finances in the past not much is going to chance in the two weeks it takes to get your paycheck.

There are many bad credit payday loan companies out there that will allow you to borrow cash without a checking account.  Make sure to understand what you are getting into before you sign any contract.  Please do not think that you are getting free money to pay off your bills; you are actually getting money at an extremely high interest rate that could come back to haunt you.

Please make sure to return to Subprime Blogger for all your mortgage and financial news. To stay up to date on the current state of finances make sure to bookmark the current news category below.

Current News

Author: Heather Best

Category: Bad Credit Payday Loans

Comments

Leave a Reply





    • Subprime Blogger is Digg proof thanks to caching by WP Super Cache!