Extending the loan for bad credit - guaranteed
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.
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?
Every time a person extends the term of the taken on credit cash, he increases his expenses.