So payday loans are getting ridiculous

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>When I went online I found that many places are charging 300 to 600 percent interest! That’s absurd! For me, it was 50% and even that was insane in my eyes. Interest is expressed per *year*, even if the loan term is shorter. So your quoted interest rate wasn’t 50%, it was 570%.


So the whole time reading the OP and the comments, I couldn’t help but wonder why nobody’s encouraged reaching out directly to the lender; with a decent payment history, and having an actual human being on the other end of the phone, what do you have to lose by explaining the situation and requesting a payment extension? Your mortgage company presumably wants to continue receiving your money, so I’d think they have a bit of a vested interest in keeping you financially solvent, especially when your alternatives are stupid-high APR options like payday loans. I get that especially with national institutions, you’re just one of many items on the balance sheet, but is it really so naive of me to hope for some humanity still left in the world?


>So I got an email saying that my payment to my mortgage company went through so I’m guessing my bank paid it anyway. I’m sorry to say this but the payment will be reversed back after 24 hours if there are insufficient funds. You will probably get a $25-40 penalize for it as well. Unless you have an overdraft on your checking.


>When I went online I found that many places are charging 300 to 600 percent interest! That’s absurd! So let me preface this by saying, unequivocally, that payday loans are predatory and dangerous. Now that said the reason they charge 300-600% interest is because you are supposed to pay them off in 1-2 weeks. They need to make all their overhead + profit inside that 1-2 week period **IN THEORY**. Now yes, many of them are predatory and stretch that out and just milk people forever but the *THEORY* is it is a loan supposed to be paid off in 1-2 weeks.


Just to add, sometimes Mortgage lenders say that your payment is due on the first of the month, but you have up until the 15th before it is marked late and there is a penalty for late payment. After 30 days, then it is late payment + mark against your credit score. Take a careful look at your mortgage statement so you know how to react better next time. I mean this in the best way, if paying for your daughter’s medical bills left you without an emergency fund (if you even had one) you need to rethink how you use your money in these situations moving forward. If you do not have an emergency fund, then it is time to budget so that you can build one up so you don’t stress so much next time.