Payday loans have been around for years, but have become increasingly popular during the pandemic. They offer a quick and easy way to get cash, but often come with high interest rates and fees that can leave borrowers stuck in debt. In this blog post, we discuss the pros and cons of payday loans, including an overview of the laws that protect borrowers and what you should consider before taking out a payday loan. We also explore other alternative options if you need emergency funds.
What is a payday loan?
Payday loans are a type of short-term loan to help you cover your expenses until your next payday. They are usually small, short-term loans that come with high interest rates. Payday loans usually mature on your next payday and the amount of the loan, plus fees and interest, is deducted from your account.
What happens if you don't pay your payday loan?
If you default on your instalment loan, the lender may try to recover the money from you using one or more of the following recovery methods:
-by calling you on the phone.
-Sending a letter or e-mail
-legal proceedings against you
