Payday loan is a loan short-term loan which is taken by an employee before his normal payday. If you're reading this, you are probably one of the millions who often wish "If only I could have received my salary a day or two earlier!" Most bachelors experience this situation in which they are out of cash before the month comes to an end. If you are really badly in need of that advance cash, a payday loan is designed just for you. Payday loans are arranged for a very short period of time to fill up that small cavity between your cash-run-out-day and your payday.
So great! You can always take your salary in advance and save later in the month so as to make up for the following month, right? Wrong! This is a mistake, and this is what the lending organization want you to do. Think like this. If you are loaning money before the month end, you are either really poor in money-management, or you are earning too less.
So, why exactly is this risky? Simple. Interest rate. Plus the penalties for missing a single payday loan is too high. What you thought as a one-time small payday loan might grow up as a recurring debt that you may never repay. The lenders are looking exactly for this vulnerability in their borrowers. The lenders of payday loans are criticized as "pirates" by Consumer Financial Protection Bureau because they carelessly lend out loans without verifying the repaying capability of the customer.
You may call it a trap, the worst part being the lenders capturing your bank account if you fail to pay the instant approval payday loans. So basically you will need money to pay the loan or you risk being the target of another increased interest. It might become an infinite loop.
So, how to save yourself from this mayhem? To be honest you need to get better at money management. Consider options like the U.S. Bancorp, Wells Fargo, Regions Financial Corp and Fifth Third Bancorp, who offer lesser interest rates than non-bank lenders that charge you huge interest. Treat a payday loan as a credit card. Payday loans give you money that you don't have and isn't yours. Payday loans gives you the taste of a sweet and yummy shell while hiding the bitter and cold part within. If you aren't sure of your financial capability in the near future, this is not the friendly neighborhood backyard to fetch your ball from.