Payday loans have been taken the market by the storm and have provided a sort of assurance to people to avail money, but when they need it and are running out of the budget. As soon the concept of payday loans hit the market, people start applying for, and today, the concept is successful. However, there are always some rumors that get associated with anything and everything that are present in the market, and payday loans to are not untouched with such rumors.
Today, we will enlist a few myths that are circulating in the market, and many of them have been able to convince people as well. A few of the myths are listed below with their justification.
• It Is A Trap
This is one of the most common myths associated not only with just payday loans but every type of loan available in the market. We, however, have justification for the payday loans. A payday loan is basically a short term loan that put people at ease when they need an urgent cash and running low with money. Stats show that nearly 70% to 80% of employed people with monthly income apply for this loan from once in a year to once in a month and they pay back the amount on their next pay day. This loan has given many families an assurance, and the loan helps to get instant money without delaying the process of accepting application and others.
• It Targets Poor
The second most common myth associated with payday loans is that it targets only the poor who are not able to pay back the amount, but there is no authenticity in the rumor. Payday loans can only be applied when you are employed and are earning a certain fixed amount of salary. Even the statistics show that 90% of the applicants are well placed and earning well.
• Hide Fees and Charge High-interest Fee
Another myth is that payday loans have a high-interest fee and them unnecessary charge you with the hidden fees. Payday loans come with disclosure and agreement where the entire amount, fee and interest fee are mentioned. Thus there is no fooling around. Customers applying for the loan can go through the disclosure before finalizing the loan.
These are just a handful of rumors associated with payday loans, and there are many like this that are still circulating the market. However, when you are applying for the loans, it is recommended that you do all the check from your part to avoid any misconception.