What are the Arguments Against Payday Loans and Are They Legitimate?

There are many arguments against payday lending, but not all of them have truth to them. The biggest argument against such companies is that they prey on those who can least afford it and trap them into a vacuum that they cannot escape. Are payday lenders legitimate or are they just a scam.  ?  Do payday loans serve a purpose or are they just a cycle of debt?  This article will address some of these questions and concerns.   

First, let’s address what a payday loan is.  A payday loan is a short-term advance of cash given to an individual who has no other way of obtaining the money. The borrower usually promises to pay back the loan within a week, two weeks, or a month, along with finance charges that are due based on their next payday schedule. The finance fee on these loans can be very high if repayment is not paid back by the next payday. 

What Do People Get Payday Loans For?

Most borrowers use them to cover their expenses until their next paycheck arrives. Many people may find themselves with unexpected bills due to an emergency and since many do not have money put away in savings to cover these expenses, a payday loan is an option to help them with it even if the borrower has poor or bad credit they may still qualify.   

Why Do People Need to Take a Payday Loan?

First of all, it must be noted that payday lending is not an easy occupation or one that is taken lightly. The process involved in getting a loan from Mypaydayloan.com has to undergo strict scrutiny intended. 

To prevent borrowers from defaulting, we ensure borrowers do not borrow more than what they can afford to pay back in full on their next payday. This means that they must have done their homework and made sure that whatever amount of money they are taking out can be paid off within the period given. 

But What about High-Interest Rates?

Why are these so high?  Well, it’s because you are borrowing money for a short period. Unlike banks or other financing institutions, payday lenders are taking a higher risk.  Many of the applicants lack creditworthiness and this type of loan has no collateral. That is why payday lenders charge higher amounts of interest. 

Are there Benefits to Taking a Payday Loan?

It has been proven that payday lenders do help people get out of tight spots and allow those who would otherwise be unable to finance emergencies (like medical costs) without having to borrow money from friends and family members.  Payday lenders tend to find ways to help people who need financial support and may go out of their way to work with those who need extensions on payment due dates or even waive certain fees so they can get by another month without filing for bankruptcy.  It is up to the borrower to take responsibility for paying off his loans quickly and avoiding the vicious cycle of interest fees that come with borrowing money for long periods. 

Why are payday loans bad then?

It is because of the borrowers who do not pay them back on time and end up getting trapped into an endless vortex of debt which can be avoided by doing some research and understanding correctly the terms and conditions of the agreement. Make sure of choosing a reputable lender like Mypaydayloan.com.   

Why Can a Payday Loan Be Good?

In a time of need millions of people are limited to how they can get the money they need to handle a funding situation.  We offer an easy secure online application process so no need to go to a local store.  If you qualify, we can provide you with the funds the same day or by the next business day.  If you qualify you can get as much as $1,000 to cover these unexpected expenses.   

Mypaydayloan.com is a reputable company that has been providing arguments against payday loans to people for over 10 years.  We work very hard to make sure our customers are treated with respect and take the time to make sure they fully understand the terms of the payday loan agreement before the customer commits to this type of loan. 

In conclusion, yes there are arguments that payday loans are a big scam but if you are working with a reliable, reputable lending company a payday loan can be a legitimate option for you in your time of need.