Simply putting yourself in a spot of debt will make you crave for more.  In a sense, the craving is not technically a desire to have more access to more money.  It is rather the aspect of needing more loans to cover up for the other loans that you cannot afford to pay.  Payday loans online are a fine example of getting into a debt trap and cycle that you can no longer afford to pay.  Imagine the extensive rollovers of the loan that are experienced all over the country.  In fact, it has been studied that of the $3.4 billion earned by the payday loan lenders, eight percent would be composed of the rollover debts that borrowers can no longer afford to pay.  Hence, they further decline their financial instability as the debts continue to pile up more than necessary.

Recent studies have shown that of the 19 million borrowers who take out the loans for their monthly expenses, 12 million of them will be the ones who will extend the loan for another period.  The APR is the cause of why many of these borrowers are constantly moving their debts to another term or period.  It has been researched that of a 15 percent interest for a 15 day period, it can mean 30 percent interest rates for a month.  Thus, if computed annually, it can reach to an annual percentage rate of 360 percent.

For this reason, many lawmakers across the United States are fighting for the rights of the consumers by creating certain laws to maintain and curb the abusive and extensive interest charges that these lenders charge for the contract.  A recent move of some members of the US Congress is to include civilian borrowers to the 36 percent approved APR law for military personnel borrowings.  This decreased APR will, consequently, decrease the 12 million Americans, who are caught in a debt cycle.  In addition, the law will help prevent the lenders from stripping too much money from the hard earned salaries and wages of low income communities.

People are often on the ground to get money as fast as they can.  They forget to review the certain repercussions of the payday debts as they are simply moved to get the money they want.  Most often, the debts all comes down to the fact as to how important that expense would be to you.

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