Payday loans have proved to be a financial trap for at least one third of people causing serious problems, show reports analyzing financial habits of consumers. They are trapping consumers into a downward spiral of debt due to the penalty charges that exhaust your pockets.
Usually, people taking our payday loans are using the money to pay for their household bills or buying everyday necessities. They cannot pay back on time thus the alarming penalty charges ad they found themselves in a debt trap. If you cannot afford to pay for your daily normal expenses, it is clear that an extra fee will push you over the edge.
Also, a responsible lender will never offer a payday loan to someone who has evident financial difficulties to repay the loan. Short term cash advance has always been a lose-lose situation for both the lender and the customer.
Remember that payday loans are targeted at short term emergencies and one must not use them unless necessary. You should not use them instead of money, to pay for small purchases, as means of adding up to your income or to pay off your debts and routine costs. The risks involved with payday loans are too high. The interest rates, the enormous penalty charges and the possibility that the company will take away an asset from you so they get their payment back are really not worth it.