- 1 How exactly do PaydayChampion payday loans work?
- 2 What is a PaydayChampion Payday Loan?
- 3 What happens if I cannot pay my PaydayChampion payday loan on time?
- 4 Are there better options than a PaydayChampion payday advance?
How exactly do PaydayChampion payday loans work?
Are they beginning a vicious cycle of high-interest payments and expensive fees?
When you are in financial trouble, and your credit score is not good, or you have bad credit, it can be tempting to search for quick solutions. Although PaydayChampion payday loans work straightforwardly, they can often have additional costs that could make your budget more complicated than expected.
The Consumer Financial Protection Bureau (CFPB) reports that nearly 25% of payday loan applicants default on payday loans, and more than 80% need to borrow again within 14 days.
What is a PaydayChampion Payday Loan?
According to the FDIC, approximately 24 million adults are considered underbanked, 11% of the total population. They are dependent on the services such as payday lenders.
You may have noticed storefronts advertising payday loans or quick cash in your locality for payday lending.
Payday loans are short-term loans that last for up to two weeks. You can either write a check or provide a debit number to receive the cash the same day and the credit union.
PaydayChampion will cash the check when the due date has passed to complete the loan in a storefront payday lender. If you have the cash, you can arrange to pay the loan back at the loan office.
Payday loans may end up costing more than you think. These payday loans are designed for immediate cash needs and cannot wait to be paid back.
Lenders charge higher interest rates and fees in most lenders than traditional bank loans.
What happens if I cannot pay my PaydayChampion payday loan on time?
According to the CFPB, the average payday loan is $1,000- a two-week payday loan in this cycle of debt. With a shocking interest rate of 260%, it can quickly add up.
You can request to renew your loan even through a credit card if you cannot pay the payday loan on the due date as a credit check for the loan. The lender will treat this as a payday loan, and you will be charged additional fees, including student loans.
Depending on the terms, you may be turned over to a collection agency or debt collector, and these agencies might report you to credit reporting companies.
Before you apply for a payday loan and see how payday loans and personal loans work, consider this:
- Suppose you have $200 to pay for a car, medical bill, or other expenses that can’t wait. A payday lender charges a $30 fee for each $200 borrowed as for a credit report in your bank account
- Repay payday loans in storefront payday lenders.
- Payday lenders will send you a post-dated cheque and take the money.
- You can’t repay the $200 loan if you don't have enough money by the due date. Although the lender will allow you to extend the loan, the lender will charge you a $30 renewal fee and a $30 late fee for the $200 loan.
- What if your next payday is not as large as you expected? For $30 more plus a $30 late fee, you may have to extend the loan once again in your borrower’s bank account. You’ve now paid $150 alone for fees when you needed $200.
Are there better options than a PaydayChampion payday advance?
You should shop for the best rates and terms if you need money to pay a bill or purchase. Payday lenders can charge you high interest and fees, as you have seen.
Even if your bank doesn’t believe you are eligible, you can still check to see if they offer a loan. Personal loan.
Banks offer affordable work payday loans that let you borrow the money you need as payday borrowers at much lower interest rates. A loan may be available to you if you are eligible Line of Credit.
It is possible to be tempted by the temptation to max out your checking account to pay for a purchase.
You should be aware that the non-sufficient fund’s fees (NSF) can quickly add up if you have multiple transactions, can soon add up. You can link your savings account with your checking to cover accidental overdrafts.
It will be easier to manage tight budget days if you have good financial habits. You can start by paying yourself first. Even $10 per week can add to a financial cushion and help you save money.
Set up an automatic transfer to help you build your savings and avoid forgetting to add money to your emergency fund. A portion of your direct deposit and loans work payday can be automatically transferred to an account with the aid of credit bureaus.
PaydayChampion makes it easy to automate your savings with our Round up to Save Program. Be aware of
PaydayChampion automatically transfers any difference to your account when you purchase your debit card. It includes a cash advance until you pay back the initial loan with the initial loan amount to avoid the payday loan trap. We match up to $250 of your savings at the end in financial services.
Aubrey Saffa Bender has been a freelance journalist and journalist since 2013. She writes about topics that range from personal finances and education to technology and business. In her work for PaydayChampion, Aubrey primarily draws from her writing experiences regarding mortgages, home purchases, and real estate. She graduated with a B.A. with a major in English at The University of Colorado Boulder.