Extending the loan for bad credit - guaranteed

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Most of the microloans are offered at a huge annual interest, they need to be paid immediately and completely. All such loans are very similar to each other. Their terms are a maximum of two weeks. Think and ask yourself: If you were owed $ 500 or more to a creditor, would you really be able to return all that amount, and with the interest in just fourteen days?

Proven fact: Virtually no one can fulfill these conditions. That's why we have to constantly extend the borrowed loan.

  • What is the procedure for prolonging the loan?
  • With short-term loans, one-day loans almost always have to extend the time. What it is? Legally, this is an additional agreement between the lending institution and the borrower. It specifies that the loan expiration limits are extended for the same period, but at the same time, the borrower must pay even greater interest on the principal loan.

    Here is an example of how this actually looks like

    Brian takes three hundred dollars. A loan for two weeks will cost him fifteen dollars for every one hundred dollars taken from the creditor. That is, only forty-five dollars for the full amount of the loan. Two weeks later, Brian cannot afford to pay money. Instead, he will pay forty-five percent of the interest, and will be able to extend his principal loan for another two weeks, but will also have to pay an additional forty-five dollars. Having prolonged once the terms of his short-term loan, Brian effectively doubles the lender's profit, as well as his expenses on servicing the loan from fifteen to thirty percent!

    Why is the extension of the loan so dangerous?

  • poor credit and other things

  • Payday Loans

    Every time a person extends the term of the taken on credit cash, he increases his expenses.

    Microfinance lenders

    are well aware of this. It is advantageous for them to do so and encourage citizens to continually roll over their loans many, many times. Most short-term loans are specially designed in such a way that they can be repaid only once and a fairly large amount, which many simply can’t afford.

    Loan extension

    often leads citizens into a real, very dangerous debt trap. While they continue to constantly re-issue their loans, unfortunately they do not fit one step to completely get rid of debt, and even vice versa. Every payment carried out goes only to the creditors for payment of interest, without the principal amount of the loan taken. Such an arrangement is very lucrative for creditors, but it's just a robbery for you, dear friends.