It seems like every solution to people’s problems will inevitably have its critics. Payday loans are short-term loans that anyone with a verifiable job can get.
When you run into financial problems and payday is still days away, then this is an option that could pay your hospital bills or get your car repaired.
Before people dismiss this kind of financing as a viable solution to their challenges, they should take the time to separate myth from fact.
#1). Payday Loan Interest Rates Are Too High
Arizona payday loans
For example, if a company charges a $15 fee for every $100 borrowed, then that equates to a 391 percent APR. However, if a credit card company charges a late fee of $37 per month on past due payments, then that equates to a 965 percent APR. When taken in context, payday loan rates are not unreasonable.
#2). A Targeted Audience
#3). Operating Outside Government Guidelines
government regulations
#4). Phantom Need
The reality is that emergency situations happen and many people are unable to sustain a savings account to cover those immediate needs. Payday loan customers seek out the lenders to help in these instances, not vice versa.
#5). Hidden Fees and Conditions
Before you disregard a payday loan to help you out of your financial situation, you should learn the facts. You will find that this kind of lending is a responsible option.
Resources:
1. http://www.checkngo.com/resources/faq/payday-loans/general/payday-loan-myths.aspx
2. http://www.huffingtonpost.com/rj-eskow/usurious-payday-loans-myt_b_573542.html
3. http://www.whitec0de.com/9-myths-of-payday-loans/
4. Payday loans image courtsey Scurzuzu via Flickr
This is a guest post by Shaun Chatman
Shaun is a well published author on many authority sites. He lives in Dunedin, FL, and spends his free time playing with his kids or advising friends on gadgets, travel and loans.
Shaun is a well published author on many authority sites. He lives in Dunedin, FL, and spends his free time playing with his kids or advising friends on gadgets, travel and loans.
