Any individual may face financial emergencies from time to time. Some of the financial urgency such as car breakdown or sudden medical illness may create a big dent in your bank account. Moreover, paying off these uncertain fiscal needs will let you face a shortage of finances and force you to borrow funds from family and friends. Thus, considering applying with same day loans is the preferable way of enjoying small financial help instead of borrowing from your family members and ruining your relationships.
However, despite being so helpful and supportive, same day payday loans also possess an ugly part too. So, before thinking to apply with these finances, it is important to know both the positive as well as the negative side of the financial service to end up making a wise decision. Here is the guide below that explains some of the disadvantages of same day loans.
Ugly Side Of Same Day Loans Is Explained Below:
- Extremely High-Interest Rates:
The ugly part of these finances that most of the loan seekers may face is its extremely expensive nature. Most of the online loan providers offering short-term loans charges high-interest rates and hefty fees to consolidate with the risk of offering finances without any collateral and credit checks. Taking out these costly financial services may end up worsening your already bad financial situation. Thus, it is better to make a proper research and compare the different financial deal to make sure that you are choosing the right financial option that comes into your pocket.
- Repayment Is Made With Single Lump Sum Payment:
The other bad side of these finances is this is a short duration loan in which the borrowed finances have to be repaid back in single lump sum payment. Making lump sum payment from your single monthly paycheck may disturb the monthly budget of the applicants and end up with the increasing burden of finances in future. This way, most of the applicant take another loan to settle down their previous loans and fall into the never-ending debt cycle. Therefore, opting for the financial product that comes with easy installment process would be the better option in which you can make the repayment of loan on time.
- Delaying Or Loan Defaults Will Lead To Brutal Consequences:
It is important to keep in mind that delaying or making loan defaults on these short-term finances let you face brutal consequences that are extremely difficult to overcome. Nonpayment would charge hefty penalty fees which continuously keep on increasing your debts till you paid off the loan amount in full. Plus, lenders inform the credit agencies about your financial mistakes and it may drop down your credit scores. So, it is important to always check your affordability before thinking of borrowing this financial option.
It is clear that same day loans are exceptionally expensive as compare to another type of loans and should be carefully handled. It is suggested to settle down the loan amount on the decided date to avoid facing fierce outcome. So, always check your pocket before applying with these finances!