Are Pay Day Loans That Bad They Should Be Banned.

With newspapers and MPs trying to put an end to the pay day loan business are they really that bad? There are two sides to this debate. 

Will we start with the good. If you have bad credit who would want to lend you money? Pay day loans are a last resort for most people who have bad credit, with banks turning down loan applications people have no option but to turn to these types of cash advance loans, Maybe there car has broken down and they need to get it fixed, without a car can cause more issues within itself like how are you going to get to work? So you need to get the car fixed, without pay day loans available the average person with bad credit would not be able to get the money they need to fix the car so to sum it up they are good for a short term gap and in a emergency situation.

The bad. It’s not the APR nor the fees, it’s the fact you can roll these types of loans over and over, this becomes really bad as it will cost you a fortune trying to get out of this spiral. From a personal experience I took out a pay day loan a few years ago and a few days before the loan was due I was bombarded with emails from this particular company to roll the loan over.

In my personal experience and opinion these types of loans should not be banned but the pay day loan companies should not let you roll over the loans and if you can’t afford to pay the loan back the lender must be more helpful instead of just keep hitting you with charges.

For more information about pay day loans or different lenders visit www.mymoneycredit.com