Friday, 29 May 2015

The Reality Of Myths Attached With Payday Loans

Almost everyone has heard the rumors surrounding around one of the most popular financial services named a payday loans. The unethical techniques and negative tactics have taken to bring down the popularity of these deals. But its number of beneficial features still makes it the first choice of working people who are facing some small cash problem and need short term monetary service.

But still before making the lending decision, you are advised to check the reality behind the popular myths floating around online payday loans to make sure your decision of borrowing is apt. The truth about heavily published myths are discussed below:

Myth: It Carries Exorbitant Rate

Reality: These are the short tenure loans that are offered for the time duration of 4 weeks only. This is the reason, it is very important to understand that these are not an annual loans that you can’t say it is expensive just by checking its APR that is calculated on annual basis. Thus, it is wise to check the total repayable amount to know the reality that these funds are exactly cheaper than APR of credit card.

Myth: Low Income Group People Are Trapped In Endless Debt Cycle

Reality: Responsible lender never target any income group as they simply provide the financial help to working people who need small cash help to settle their urgent situation. They usually check the repaying ability of the borrower before offering the cash help. It is said that almost 80 percent of the payday advance canada consumers are satisfied. And the rest are advised to extend the repayment plan only to carry easy settlement within few more weeks’ time.

Myth: There Is No Industry Regulation

Reality: It is noteworthy that legal lenders of payday funds follow all the rules meant by the government. They check all the rules on payday loans and follow them to provide legal service to their customers.

Myth: Lender Charges Hidden Fees That Mislead Consumers

Reality: Before providing the cash help, lenders give the fine print to the applicants so they check all the terms of the service to avoid any future trouble. The cost of the payday service is clearly mentioned on that deals that one can easily check before making the commitment. Genuine loan providers ask for no application fee, no additional cost or no hidden fee. One can simply check the terms of the deal online to ensure it suits their situation or not.