We have been covering state by state payday loan news as of late and today’s blog will be on how to get out of payday loan debt in California.
California is a state that is ripe with payday loans and has a population of people who are very active in borrowing money through these types of loan companies and we thought this would be a good state to concentrate on this week.
California does not require many of their lending institutions like pawnbrokers, credit unions, banks and yes, payday loan companies to follow usury laws.
In other words, pretty much any lending institution falls under this definition leading to huge amounts of interest being charged for short-term loans.
For example, a two week $300.00 payday loan would have an interest rate of over 460% bringing the total due at about $430.00 plus counter fees!
Now, figure in the borrower will roll over their payday loan on average three times (this adds new fees and interest total to the loan) can see how easy it is in this state to get caught up in The Payday Loan Trap.
When you consider the average borrower that uses these companies ends up taking out up to 10 loans and takes well over 6 months to pay them back at huge profits to the loan companies you can understand why these companies exist.
It is not to help people who need it!
They are there to make money, plain and simple, and not only to make money but to make lots of money!
We always tell everyone who asks us for a solution to payday loan debt hat the only way to be sure you are safe from the pitfalls of these companies is to not use them!
Most people will still choose to go ahead and do business with them, so we then advise that the only way to safely use a payday loan is to take out only what you need and can pay back IN FULL on your first due date!
NEVER extend a payday loan, EVER!
NEVER take out more than one payday loan EVER!
Yes, we get a bit emotional about the nevers, but they stand true every time! If you go against the nevers, you will always lose in the end.
In Too Deep
We know it can be hard and we here at Help With Payday Loan Debt have been on both sides of these loans and we know how easy it is to get caught up in them and get trapped.
If you have out of control payday loan debt we can help!
We have a plan we follow that helps people when they get caught up in the payday loan trap and would be happy to take a look at your situation. Just pop over to our Payday Loan Repayment Plan and see how we can help you
We hope this information helps you in your everyday dealings with short-term loans!
As always, we want to hear from you!
If you have any questions or comments please leave them below in the comments section and we will address them promptly!