Online Payday Loans: Know the Truth Behind the Myths
Every day Americans use online payday loans to help them out in an emergency or urgent cash pinch. You may be one over half of all Americans who have less than $500 in savings. You don’t have that extra money sitting and ready for that emergency.
It would be great if you had a credit card to cover those emergency expenses. However, many people simply have no credit cards or have no available limit left to draw upon. When you have no savings or available credit, you have to look elsewhere. That’s why online payday loans are available and used by so many across America and even other countries.
Online Payday Loans vs. Traditional Loans
What about getting an installment loan with lower interest rates and a longer time to pay it back?
Sounds great, doesn’t it?
However, many times, the extra penalties, fees, etc., you get if you miss a payment are just as serious as if you missed your payday loan payment. Of course, they don’t talk about that, do they? No matter the loan type, you have to pay it back or suffer extra charges and fees.
Did you know your bank does this too?
How about your utility company? Same story.
Most banks charge $35 for every NSF check, get short on funds for that emergency auto repair and bounce 5 checks, and you just paid $175 extra… compared to half the amount for a $500 online payday loan. Who is predatory: a payday lender or your bank?
Don’t be fooled by the false press and false information spread by those you just want to get your business.
Related Article: Online Payday Loans: Debunking Top 5 Myths
How to Avoid the Debt Trap
Many people will say that payday lenders are trying to trap you in debt and other scare tactics. However, the truth is you should never take on any kind of loan without knowing the exact terms and conditions, and most importantly if you can meet them when the time comes. Most payday loans are paid back in 2-3 weeks at your next paycheck. If you can’t afford to meet that obligation, an online payday loan may not be for you.
Related Article: How to Rescue Yourself from the Debt Trap
When to Get Online Payday Loans
Online payday loans are a fee-based loan meant to be paid back on your next payday. Everyone wants to equate their annual interest rate when it is not a reasonable comparison. No one should get a payday loan or short-term installment loan and assume they are going to pay it back in a year. That is a budget disaster.
Are the fees higher than a person who has a credit card? Of course, because the person with an open credit card to charge to is at a significantly lower risk to pay back what they owe. If everyone qualified for a credit card with a huge limit, there would be no need for online payday loans or even installment loans.
What do you do?
Forget all the misinformation. You need money now, apply and get it. Just be 100% sure you can pay it back on your next pay date, and all the worries about future costs are gone.
Always understand your loan terms and never agree to a loan if you are not comfortable it will work for you.
Need cash now? Apply by clicking below "Apply now" button.
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