Cash 1 Blog

Financial Tips & Guides
Rolling over loans will cost you more in the long run

Avoid Rolling Over Loans

Updated on April 20, 2021


Payday loans provide short-term financial assistance to those who are struggling to cover expenses month to month. To receive a cash advance, an applicant has to post-date his or her next paycheck as payment for the loan and any transaction charges.

In states that permit this practice, payday lenders allow clients to rollover their loan if they won't be able to live off of their reduced income. While this is beneficial to consumers, it can end up costing them much more money in the end.

The annual percentage rate (APR) on a loan is calculated by how many payment periods are in a given year. When a borrower takes money without paying off the initial cost, the APR rises continually until all debts are paid. If a repeat applicant does not budget his or her funds properly, he or she can be caught in a debt trap with little recourse or escape.

That's why it's important to understand all the fees and charges associated with payday loans. At CASH 1, we explain the APR and how much it'll cost you to take out loans before paying off previous bills.

Photograph of author Joseph Priebe

Joseph Priebe

Joseph Priebe takes pride in assisting audiences with his articles to help them make sound financial decisions.

With over ten years of experience writing financial content his goal at CASH 1 has always been creating engaging and easy-to-digest information for anyone searching for immediate or long-term monetary solutions.

When Joseph is not writing about personal finance, you can find him photographing the Southwest United States with his 4x5 Graflex Crown Graphic camera. He is based in Phoenix, Arizona.