What are the pitfalls?

The main pitfall of a quick loan is its cost. If you take quick loan when you are under a financial difficulty, it makes your expenses spiral up due to high interest rates. If you are unable to pay them on time the loan is rolled over to a new term and late fees are incredibly high. According to the findings of CFPB, four out of fie payday loans are get rolled over. So take quick loans when you are in dire need. ‘’The very economics of payday lending business model depends on a substantial number of borrowers borrowing again and again at a high interest. It is just like getting into a taxi just to ride across town and finding yourself stuck into a ruinously expensive cross country journey’’, said Richard Cor dray, the director of Consumer Financial Protection Bureau.