What does “renew a payday loan” mean?
For example, if you can not pay off your payday loan on time there’s an option for you to take out a new loan to pay off your previous one. But then you will have to pay additional fees on both of your loans. I agree, it’s a kind of a trap, that’s why it’better to avoid it. You can get into the payday loan addiction and need to take out new loans again and again to deal with your debt. It’s better to pay off the loan when your payday comes, that’s why before applying for a payday loan it’s extremely important to make sure that you will have money and paying off the loan won’t harm your budget.
According to me renew a payday loan means you actually pay the fee to delay repaying the loan. Actually this fee never reduces the loan amount which you owe. If you actually roll over your pay day loans uk multiple times, then it may be possible to pay more than a few hundred bucks in delay fees and still owe the loan amount you exactly borrowed.
When you can’t pay off your entire payday loan at once, most payday loan companies will create a new loan for you to use to pay off the previous loan. The catch is they charge you an additional fee for the loan, which means that you have paid the fees twice on a loan of the same size. This is a trap that can keep you in debt for a long time, paying exceptionally high fees. There are several different ways to get out of the debt trap. ZestCash loans are a great way to consolidate your higher cost loans into one easy payment you can afford with no hidden fees.
