What you should know about. Spotloan is a better way to borrow extra cash. Its not a payday loan. Its an installment loan, which means you pay down the principal with each on-time payment. Borrow 300 to 800 and pay us back a little at a time. Months, not weeks. Unlike payday loan agencies, at Spotloan you are able to pay us back over months, not weeks. Take as long as 10 months or pay us sooner and save on interest, it's up to you. CAN HELP WITH EXPENSES LIKE. Hospital Bills.
When you take out a new loan to pay off the first one - plus any interest - the next month's interest payment is likely to be significantly MORE. That's because you'll be paying interest on the new bigger balance after a month, which includes the original loan as well as the interest you have built up.
And if you couldn't afford it after the first month, will you be able to afford even more the second month. If you repeated this compounding over 12 months by refinancing each month, all the interest you paid each month added up is equivalent to the APR. This may be over a hundred times the first month's interest rate. The higher the monthly rate, the faster the overall cost of the loan soars which is why it's important to get the lowest rate.
Sometimes, people find themselves taking out a second loan to pay off the first, and then a third to pay off the second. It quickly spirals out of control, said Mark Taylor, a worker in rural western Virginia who knows the dangers of online payday lenders better than many. Taylor, 50, is a field service technician for a company that makes rescue chambers for coal mines. He took out an Internet loan in the summer of 2013, and quickly got up to his ears in debt.
Taylor said he needed the loan to help cover a 3,000 down payment to buy the land on which his mother lives. Taylor didnt have the money and worried that his lack of credit would keep him from being approved for a traditional loan from a bank.
Taylor went online and borrowed 1,000 from a lender called Silver Cloud Financial, Inc. It's a tribal lending entity owned and operated by the Habematolel Pomo of Upper Lake, a Native American tribe in rural northern California.
Taylor said he only had to give Silver Cloud minimal information, including the name of his employer, how much he was paid, and his bank account number.