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Increasing use of Payday loans has become a debating issue with widely introspective studies regarding the benefits and harms of this new way to pay off debts.

Lenders offer payday advances on loans, which tie borrowers over until the next paycheck arrives. The agreement regarding advances is carried out between the related parties that is the Lender and the Seeker. These agreements usually lack transparency and because of this now, different Issues are being popping up which are concerned about the harms of payday loans.

Issues on Payday loans are getting momentum as state officials, victims of the loans, and many others are standing up, speaking out about the harm these loans can cause. One person spoke out about his experience of payday loans, claiming that after borrowing $300 he had paid back $500 and the figures are still escalating. And this is just one incidence out of many.

The loan agreements attached to payday loans tied the borrower into a contract, which states that the borrower has agreed to repay a respective amount of dollars for exchange of the payday loan amount. As Payday loans are unsecured, short-term advances against a paycheck so the lenders give the borrower in most of the cases two weeks time to repay the loan and the fees charged thereof. While some other lenders allot time of 18 days to repay the advance and its fee.

These payday loans can lead to bankruptcy or debt unwanted. As there is an amount that is charged in way of fees so, many times when the loan kept rolling over, the fees finally paid could be equal to the amount of loan taken. Many lenders offering payday loans charges $30 on the amount of $100 payday loan. And if the borrower is not able to repay the advance on the due date, then usually he agrees to pay the fee and extend the loan until the next paycheck arrives. If scrutinize we will find that payday loans have a pattern and most times the cycle continues thus making the borrower victim.

To protect the interest of common man these days, many State laws are out to change the payday loans, with many trying to abolish the advances. At the time we speak, 15 states have now outlawed payday loans. In additional 25 states are currently working to set up strict laws on payday loans. The laws stipulate that lenders of cash in any area must provide in writing the loan amount, APR (annual percentage rate) amount, fees applicable, and other details to supply loans to consumers. Other rules are also in question that can put a check on the malicious practices of the loaners.

In actual these loans were designed for emergencies. But now people take out the loan for less critical purposes. And the cycle starts; making it a vicious circle from where coming out is a tedious job. The borrower is now relying on payday loans, almost to the point of addiction, i.e. some do become addicted which definitely is alarming.

When one gets into the habit of payday loans he hardly realize the actual cash position of self and keep rolling the loans from one term to another, just to end in a critical position.

When consider payday loans check your options and pull out your resources to see if other methods for resolving financial issues are not available. Never take out a payday loan merely to put extra cash in your pocket. If you apply and are accepted for advances try to save a few dollars, applying the cash toward payback. Always try to pay the loan off on its due date. Some lenders will allow you to repay half the loan and repay the remaining balance on the next two weeks. Do not hesitate to ask if you see you cannot payoff the loan amount on the due date.

Payday loans should not be one's first choice but still if one has to go for the payday loans he must go for the thorough study of all the documents he is ought to put signature on and should be very rigid on the time he is supposed to pay back the same. For a loan online, make sure the site is secured.

Remember, payday loans if used by you should provide you help rather not making you helpless because of them.