Thinking of getting a payday loan but do not know if you would be making a bad decision? Like in most cases, only avail of a payday loan if it is really necessary and the amount should be something that you can afford to pay in a short span of time. Best short term advances can be processed as fast as 24 hours but the interest and service charges are also astronomical.
There are several myths and facts that you need to straighten out:
Truth #1: Payday Loan Lenders are not Predators
News articles are harsh in tagging them as payday parasites or loan sharks who prey on customers who have fallen into economic difficulties. Fact of the matter is, that they offer top rated payday advances up to $1,000 even to people with bad credit ratings when no other lending institutions or banks would extend their assistance.
It is only fitting that these loans should be paid during payday since no other source of income is expected from the customers. Also, paying on time would give the customer opportunity to borrow again when the need arises
Truth #2: Payday Loans are Usually Availed for Emergency Instances or to Pay Bills
Only 1 out of 6 people avail of payday loans without any important or urgent need. In most cases, people have payday advances to pay their bills, for special occasions like birthdays and graduation or emergency purchases or trips.
Because of its high interest rates, only a few fool hardy people would proceed with availing with this kind of loan when there is no need for it or simple just want to have some extra cash lying around.
Truth#3: Payday Loan Encourages People to be Disciplined in Paying Bills on Time
Not being able to pay your amortization on time would result to additional charges and penalties on top of the fixed interest rates that you are paying. Also, majority of the top rated payday loans are programmed to automatically deduct the amortization from your salary.
Non-prompt payment will also result in a worse credit rating for you which will in turn make it difficult for you to avail of the loan again once the need arises.