Payday loans in Denver are a very hot business for a variety of reasons...but the main reason is it is an arrangement that seems equally beneficial to both parties. So, if that is true…why does the business get such a bad rap?
The reputation of payday loans is that they are predators that charge high interest to those that can’t afford to pay the fees.
Here is how it works…and what can go wrong.
Let’s say I get direct deposit from by employer…which means I don’t get a paycheck in paper form...but my payroll is deposited into my checking account. In a month’s time I get 2 deposits…
So I go to a Payday Loan company (on almost any major street in Denver you can find one) and show them my payroll information… proof of getting paid, proof of how long I worked at the company and a couple of bank statements.
Then I show them a blank check that is voided so they can force collect a payment.
Then you sign an agreement that is maybe 10 pages long where you agree to the rate.
Rates will vary but it might be pretty high...an estimate might be if you borrow $375 you might end up paying $550 over the course of 4 months.
The consequences if you fail to meet the agreement?
Someone that could call you every day…and whoever you listed on the application as a reference…will be called…they will be more aggressive than most other companies...they will be so intense that even if you say “Where do I send my payment?” they wouldn’t even hear you…because they are like a machine that doesn’t know how to stop.
I have known people that use them and it was normally a situation where they had an emergency and in a panic they just wanted to get money fast…and they didn’t have a chance to explore the alternatives…or read the fine print on the paperwork they signed.
Payday loans in Denver are not the only game in town though…in fact, many banks do the same thing in a little less expensive way.
You can even do it online by logging into your bank account and using a tool listed under account options and features.
It might cost 10% (or more) and it is immediately deposited into your account.
The way to get approved is to have your account for at least a few months, have a track record of direct deposits and make sure you have not received a direct deposit advance for more than 9 months in a row.
Payday loans in Denver are very popular and when you meet the requirements you can get your money fast but…you have to ask yourself….
If you are short on money now…when you pay it back plus add a big fee on top….wouldn’t you be worse off a month later?Payday loans are one way of solving your cash problem…but it seems like you are exchanging that problem for a larger problem..even if you understand the risks..the relief you get is only temporary.