You need to replace your cars tire and find out it’s going to cost you over $300. Unfortunately your bank account is empty and you aren’t getting paid for another week, so you resort to getting a payday loan.Getting a payday loan is really fast and easy to obtain when you’re facing a financial emergency. You know it’s probably best to pay it off by your next check, but you’re still short on cash and end up being part of the majority of individuals taking out multiple payday loans. This is how people find themselves in the “vicious cycle”.
If you find yourself needing to take out one payday loan to pay off another one you are likely stuck in the “payday loan cycle.” This cycle doesn’t have to be endless and you might want to consider taking out a loan to make a single payment at a lower interest rate.
Payday Loans are capable of taking away your savings and even your usable income. Payday loan debt can create countless troubles with very few ways to get rid of them.Approximately 12 million individuals in the United States take out at least one payday loan each year as they use it to justify their short term needs, but usually cause you to dig yourself into more debt.