Cash / Payday - Payday Loan

100 - 2 500
Easy Payday Loans
Fast / Quick Payday Loan
No Fax Payday Loan
Online Payday Loans
More on Payday Loans
Payday Loans
Multiple Payday Loans

One of the worst things that a borrower can do is to take out multiple payday loans. Taking out multiple payday loans can cost a borrower hundreds or thousands of dollars in interest charges because of the high interest rates charged on payday loans.

Some payday loans come with interest rates of 30% or higher which means that person would have to pay back $130 after borrowing $100. Taking out multiple payday loans can quickly eat up all of a person’s income.

This means that a person should never take out a payday loan until they have paid off previous payday loans. Limiting the number of payday loans can help a person save money and avoid getting into debt.

Multiple Payday Loans Problems

One trap many borrowers fall into is getting a new payday loan from another lender and using it to pay off a past paid loan. Some borrowers get multiple payday loans to pay off past payday loans and cover all of their day to day expenses.

This strategy can make a person miserable because sooner or later they’ll reach a point where they can’t pay off a payday lenders. Payday lenders will go to great length to get unpaid payday loans paid off. In many cases they will send debt collectors to a borrower’s home or workplace to harass them until the loan is paid off.

Payday lenders will also harass borrowers with phone calls and other collection methods. Some lenders may take legal actions such as lawsuits or garnishing a borrower’s salary or government benefit to get the money.

Nobody wants to be in this situation but taking out multiple payday loans can lead to this situation. Everybody who takes out a payday loan should think about being at the mercy of debt collectors before signing the loan documents.

Why You Can Get Multiple Payday Loans

Borrowers can get multiple payday loans because many payday lenders don’t run credit checks or report lenders information to credit bureaus. Since the information isn’t shared with other lenders there is no way for the lender to know that the borrower has a loan from another lender.

This means that a person could walk into several payday lending locations and get loans or take out several payday loans online at once. Such a strategy would quickly get the person into debt but it is possible.

Multiple Payday Loans from the Same Lender

Many payday lenders encourage borrowers to take out multiple payday loans in order to get the person in the habit of getting payday loans. Lenders want borrowers addicted to payday loans because they make more money from good customers who keep taking out loans and paying them off.

This is why lenders will make all sorts of offers to people when they pay off their payday loans. They want the borrower to take out another payday loan so they can make more money. Taking out multiple payday loans from the same lender is good for the lender but bad for the borrower.