Payday loans are not as bad as you think. When it comes to a serious need for money, there are several options that provide you with the money you need, when you need it without any mention of your credit history. With this option at your disposal, it is essential to know the facts, not the myths of payday loans.
1. Payday Loans Cheat You out of Money
Truth: Payday loans are much simpler than people think. They are not a tactic to deceive you without money, but they are an excellent tool to use when you need cash and your alternatives are limited. People wrongly believe that these loans are scams because if it sounds too good to be true, there has to be a trap. With its easy accessibility and a relatively easy application process, payday loans are just an option to get cash in your pocket.
2. Only Lenders Benefit from Such Loans
Truth: If the lenders were the ones who benefited, why is it so simple for you to get cash when you want it, without the hassle of a waiting period, a credit check or guarantee? The truth is that you benefit as much as lenders do since payday loans are a well-oiled financial machine. The lender puts the money directly into your account through direct deposit and when the loan expires; your payment is made. When you are in a bind and need quick cash, you completely benefit from this type of loan.
3. Only People with Serious Financial Problems Get Payday Loans
Truth: Payday loans are totally non-discriminatory, which means that the average borrower has an income of $ 30,000 to $ 50,000 and 94% has a high school diploma or higher, while 56% has at least some university experience or a complete degree. The everyday American, this income range describes the general middle class. They are not for any particular demographic group; rather they are simply for those who need a little help to spend the month. Check here.
4. Payday Loans Are Expensive with Massive Interest Rates
Truth: Most people believe that payday loans are bad because of exorbitant interest rates. To know the truth about dollar signs, you have to first know the context in which payday loans operate. The loan period is usually two weeks. The average loan is comparatively small since it tends to be the size of your paycheck. The interest rate is considered higher than most, but it only applies to the time frame of the loan. If the loan was extended for one year, then the amount of interest would be astronomical, but it is not because the loan was repaid before.
5. Payday Loans Should Just Be a Last Resort of Despair
Truth: it’s your money and your life. When you need extra help with your bills or vacations, these loans are a wonderful resource. If you can borrow money from a friend, by all means, do it. But with cash loans, you go in and out with your money avoiding the hassle and embarrassment of asking a friend for money. They are simple, easy and all are candidates as long as they have a job and an active checking or savings account. In terms of being the last resort, payday loans are an attractive option when your chips are down.
Payday loans are a simple response to a genuine need, almost always in circumstances where there is no alternative available. Payday loans are not basically bad, but their use can have negative financial consequences. Check out this site: https://www.unclebuck.co.uk/payday-loans/