Is a Kansas City payday loan renewal right for you? In this article we discuss Kansas City payday loan renewals and how you can benefit from a renewal instead of getting a new payday loan.
We at Waldo Financial are interested in helping our valued customers in getting out from under the pay day loan cycle. We care about our customers to we often discuss with them a Kansas City payday loan renewal instead of just taking out the same $500 payday loan, pay day after pay day.
How A Kansas City Payday Loan Renewal Works
When a customer comes in to pay off their pay day loan, we give them the option to do a payday loan renewal instead.
How the renewal works is at the time the payday loan is due, the user pays $50 plus any interest due at that time. A new loan is created and the principal is reduced by $50 .
An example of the process is below:
- Customer comes in and takes out a $500 loan.
- Two weeks later the customer comes in and pays $50 principal plus any interest that was accrued in the two week period. A new loan is created for $450.
- Two weeks later the customer comes in and pays $50 principal plus accrued interest. Since the total principal has gone down the interest is not as high as on the original loan. A new payday loan is created for $400.
This renewal process can continue for six times creating seven payday loans in total. This renewal process benefits the customer in a couple of different ways:
- It reduces the amount of interest that a customer is paying because they are reducing the amount of principal with each loan renewal.
- It gets the Kansas City payday loan down to a manageable level allowing the customer to finally pay off the entire Kansas City payday loan without having to re borrow, which allows them to get out from under their debt a little at a time.
Waldo Financial is located at 8437 Wornall Road in Kansas City, MO. Visit our service center today for a Kansas City payday loan. See if a payday loan renewal is right for you.