Payday Loans in Texas - Why it CAN be Bad for You

Payday Loans

We have heard so many bad things about payday loans in Texas so they must be true right? Not quite. There are risks for sure each time you get a payday advance in Texas (or in any state for that matter) but you always have a CHOICE.

A choice whether you should get a pay day loan or not and a choice between using them for emergencies or allowing yourself to be a slave to them.

Payday Loans - Knowing is Better than Guessing

The thought of easy money can easily lure even the best of us into getting a pay day loan even if we are not faced with dire financial emergencies.

This totally defeats the purpose of payday loans which are meant only for those out-of-the-blue needs. Clearly, understanding how a pay day loan works will help us all make sound financial judgments. A pay day loan lender charges a fixed $10 to $30(!) for every $100 borrowed.

Upon FULL payment of the loan (on your actual payday) no other charges will be incurred. Period. If you stop at this point then all is well. But alas! people just keep on borrowing and rolling over the loan.

Extending payday advances will lead to a new transaction and this adds new charges to the EXISTING unpaid pay day loan.

It may not be obvious at the start but believe me when I say that the interest you are paying for loan extensions WILL be greater than the original loan amount you took! Payday loans are not the roots of all evil but extensions are!