Payday loan
providers have been called every name in the book, and some that are
too dirty to be printed! But, they're also considered by some to be
saints, providing quick money to those who can't get a loan any other
way. This article considers both sides of the debate, and gives you the
facts you need to decide for yourself.
Who are these payday loan providers anyway? You see their shabby
offices in the worst parts of town, their neon lights buzzing like
bug-zappers, suspicious characters milling about inside. Then you see
them on TV or the Internet, sharply dressed professionals telling you
that they can help you get the money you need without hassles about
your credit.
The truth is, payday loan providers offer a certain kind of service for
a certain kind of situation. Let's take a closer look at both sides of
the argument.
These people are the scum of the earth. They take advantage of poor
people and those with bad credit, offering loans with ridiculous fees
and high interest rates. In many cases, they loan money to people they
know will not pay them back. Then, they keep hitting them with punitive
fees to make money off them.
How on earth can anybody charge a 30% or more interest rate? This is
standard practice among these people! Can you imagine paying back A
THIRD of what you borrowed? That's how these creeps make their money!
It's getting harder and harder these days to take out a bank loan. Even
one little, tiny credit problem can keep you from getting the money you
need. Payday loan providers don't care about your credit; they only ask
that you pay the money back.
If you've had a tough month and need just a little cash to get you
through to your next check, they will provide it for you. Read the fine
print, and make sure you get the money back to them on time. No
problems, no hassles.
Scum or saviors? What's your verdict?? It really doesn't matter. What
matters is that you understand what payday loan services are and what
they are not.
Yes, payday loans carry high fees, and somewhere around 35% is typical.
But, these are meant to be short-term loans. This is not a bank loan
that you pay back over several years. Payday loans are designed to be
paid back within two weeks, usually.
If you are thinking of taking out a payday loan, make sure you have the
means to pay it back. If you go in there with no plan, I guarantee you
will end up paying for it big time
later. That's why so many people can't pay back their loans.
Make sure you look at the fine print and be aware of any fees they will
charge. This is how they make their money, so make sure they won't be
making too much of your
money. You can always shop around for the best deal.
The question is not whether these people are creeps or just
businesspeople; the important thing to ask is, Are payday loans right
for me?
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