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Payday Loans

Avoiding Payday Loan Debt with Credit Report Management

If you're having difficulty with your credit, and you're in need of cash to help you get by between paychecks, it may seem smart to rely on payday loans.

However, payday loans should never be taken out without serious consideration. With such high interest rates, they tend to be costlier than they are worth.

Borrowers interested in payday loans can usually secure a small cash loan in the range of $100 to $500 dollars, with payment due in full within two weeks; usually the term until the next pay day.

However, finance charges on payday loans can range from $15 to $30 per $100 dollars borrowed for that two week period; that adds up to a 15% to 30% interest rate on only a two week basis.

At the same time, when the two weeks is up and the individual must pay back their payday loans, they often find that the high interest rates have left them low on cash yet again, leading to a cycle of debt where money is lost every month.

If you feel you really need to rely on payday loans, think carefully about how much money you'll be spending in interest, and whether or not you can afford that. It's much better to get control of your finances by speaking to a credit counselor, and learning what steps you can take to manage debts, increase your cash flow, and boost your credit, all without sinking further into debt. An first important step in controlling your finances is to learn what your current credit scores are.

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