The Cash Advance Trap
The adverts make payday advances seem simple: a fee is paid by you, you will get the bucks, and you repay it along with your next paycheck. You either keep a postdated check or your checking information with all the lender, therefore the lender relates to the collection. As soon as your loanвЂ™s term (generally speaking 30 days or less) expires, the payday lender cashes your postdated check or brings the cash straight from your own bank account.
But that process hides a trap: in case your account does not hold adequate to repay the mortgage, youвЂ™ll begin accumulating interest fees and charges.