Chosen by Asker

Because those who take out a payday loan get caught up in a vicious cycle where they NEVER have the intial amount they borrowed plus the additional 400% interest to pay the loan completely off. That is why they constantly renew or rewrite the loan instead of just paying it off and getting off that merry go round. Most people do whatever they can possible to avoid being a *first time visitor* to a payday lender. It is usually the beginning of a downward spiral. Best bet if you want to get out of the payday loan trap is to not rewrite the loan for the amount you have been borrowing. Pay off the loan, and if you need money, rewrite for a lower amount. Do this each time you go in until you have the loan amount low enough that you CAN afford to pay the principal and interest on the loan.

by My Take on It

2 months ago

Asker's Rating: 

Really its not in your best interest and it can be a lot of interest payments. But sometimes its the only choice. Good luck.

by Gonzalo H- 2 months ago

There's a number of different reason why this goes on. Typically if your in the situation that your forced to use a payday loan you'll probably be forced into it again. Also, a number of lenders acrually give discounts to people who borrow multiple times. Paydaymax even has a frequent buyer program, kind of like what you send with airlines where you can earn miles.

by Sixth T. Nonsense- 2 months ago

Bad habits - people get into borrowing and keep doing it every week. www ... www ...

by Jennifer- 2 months ago

I used to work for a payday loan company and I can tell you that they are right it is like a vicious cycle. People usually come back it may not be right away but they always come back. I think its a matter of managing money alot of people don't know how to do that and they don't plan for unexpected expenses so they have no choice.

by Cami05- 2 months ago

say what?

by Ray S- 1 month ago