Monetary balancing is an ardent art that has to be practiced by people belonging to all walks of life. Most monthly salaried people land up in mid-month or month-end financial crisis due to unplanned expenditures. Payday loans become angels in disguise to such victims of cash crunches during the course of the month much ahead of their payday. Though these payday loans are remarkably handy to the customers, there are few myths on air about these payday loans.
Generally the loan amount varies from $100 to $1000 and with the repayment duration of two to four weeks. Customers should be aware of these myths and the realities to avoid unnecessary dilemma caused.
Here are given the myths and the truth about payday loans:-
Myth-1: There is a misconception about payday loans that these loans are offered to those who have no source of income to repay the borrowed amount.
Reality: Actually these loans are provided to people with salaried jobs with enough source of income. The loan is sanctioned after duly verifying the eligibility, credit and identity.
Myth-2: Another myth floating around payday loans is that these loans are rendered with a very high interest rate.
Reality: Customers should realize the cost involved in the loan offered rather than interest rates.
Myth-3: Payday loans are considered to be poor financial support because it automatically leads to never ending chain of debts and lands the borrowers in unnecessary financial distress and stress.
Reality: This issue is based completely on the repaying discipline of the borrowers and their wise choice of choosing the amount which ranges from $100 to $1000.
Only very few of the borrowers who are not able to pay back their loan amount on time and consequently they have to go for the next loan to pay the previous loan.
Myth 4: It is wrongly presumed that payday loans are procured by people belonging to the economically backward status and the destitute customers.
Reality: The majority of payday loans customers are from the middle and working class, who are caught amidst mid-month and month-end cash crunches due to unforeseen expenditures.
No doubt they feel comfortable to manage their inconsistent financial conditions. All these customers are secure with steady jobs with regular source of income. Most of them possess credit cards and have loving family background.
Myth-5: Another common false impression about payday loans is that payday loans are provided with unusually excessive fees.
Reality: None of payday loan borrowers ever feel the burden of the fee until they start rolling over loans after loans above the limit.
Every valuable offer invites few misapprehensions time and again. Despite these mistaken beliefs the beneficiaries are confident in what they opt for when they are in trouble managing their insufficient cash position.
