I spent my 20s mismanaging my money, and came to regret all of those impulse purchases placed on credit cards when my credit score plummeted due to missing a few payments. I didn't learn how much this would affect my life until I was denied for both an auto loan and mortgage in the same year due to my bad credit score. I spent the next few years cleaning up my credit report and putting every extra penny I had toward old debts. Having to put my impulse spending on halt was difficult at first, but it was a great learning experience and I now realize how rewarding saving and investing money really can be. I have put a lot of research into good money management techniques, so I decided to start a blog to share what I have learned with anyone who needs help!
Payday loans are short-term loans typically offered by private lenders. The appeal in payday loans is that they can be obtained relatively easily and quickly, making them ideal for those in an unexpected financial pinch. Furthermore, funds from payday lenders, like Payday Express, can be used for anything the borrower desires. From rent payments and groceries to utilities or car repairs, the money is yours to do what you wish.
Unfortunately, there are a lot of myths and misunderstandings out there when it comes to payday loans.
Myth 1: Interest Rates Are Ridiculously High
One of the most widely believed myths is that payday loan interest rates are extremely high. However, this simply isn't true when you consider the fact that repayment periods for these loans are only meant to be two weeks. Yes, if you wait a year to pay off your short-term loan, you are going to be subjected to the higher APR. However, most lenders charge around 15% for a two-week loan, which is quite reasonable.
Myth 2: Payday Loans Aren't Regulated
Another common misunderstanding about payday loans is that they're not regulated and that payday lenders across the country have been fighting regulation. This is simply not true; regulating payday loans is up to each individual state, and most states have at least some regulations in place when it comes to this type of short-term borrowing. Furthermore, payday lenders have always been in support of fair regulations within their practices.
Myth 3: Payday Loans Only Create a Cycle of Debt
The most important distinction to remember when you're thinking about taking out a payday loan is that it's meant to be a short-term loan. If you borrow the money and pay it back within the two-week period (AKA your next paycheck), you shouldn't be out more than 15% in interest costs. With that being said, there is no reason that a payday loan should create a cycle of debt so long as you are responsible with your borrowing.
Myth 4: Personal Loans Are a Better Option
While a personal loan from a bank may give you more time to pay back your money and a lower interest rate, the fact remains that this isn't always the best option because these loans can take days or even weeks to get approved and receive the funding. Payday loans continue to be a viable and convenient option for those in need of quick cash.Share
27 February 2017