Even the very mention of instant cash loans online can often be enough to spark mass-debate as to the safety and viability of the industry as a whole. On one side there are the millions relying on payday loans and other such products every day, while on the other there are those suggesting that payday lenders are nothing less than criminals looking to rip off the needy.
In many ways the entire matter is something of a case of personal opinion, but beneath all of the hearsay and speculation there must surely be some facts separating the truth and the fictitious. This is indeed the case and therefore when it comes to making a fair and rational assessment of the safety and value of instant cash loans online, it is of paramount importance to understand the facts and address the following allegations:
Payday Lenders Charge Criminal Rates of Interest
This is an argument thrown around thousands of times every day, each time instant cash loans online are brought into discussion. However, it can be taken for granted that in at least 99% of these instances, the exorbitant rate of interest the concerned party is referring to is the APR - or Annual Percentage Rate. Now, a 1,500% APR may seem a little/lot on the high side, but it has to be remembered that an APR is only relevant if the loan is taken out for a full year or more. Payday loans on the other hand are repaid usually within a month - most lenders never asking more than about 20% back by way of total interest rates, fees and charges combined.
It is easy to be frightened off by a high APR, but also too easy to forget what APR actually stands for.
Payday Lenders Deliberately Target the Vulnerable
Always a worrying accusation - do providers of instant cash loans online really go out of their way to lend to those they suspect cannot repay? Quite simply no - as payday lenders are for the most part small and independent businesses with little to no reserves of capital to back them up. As such, every penny loaned out represents a part of the business being put on the line which MUST be repaid. To target the weak would be nonsensical as they would not only be unable in many instances to repay the loan, but certainly have no chance whatsoever in covering any resulting penalty fees and charges.
Article Source: Ezine Articles
In many ways the entire matter is something of a case of personal opinion, but beneath all of the hearsay and speculation there must surely be some facts separating the truth and the fictitious. This is indeed the case and therefore when it comes to making a fair and rational assessment of the safety and value of instant cash loans online, it is of paramount importance to understand the facts and address the following allegations:
Payday Lenders Charge Criminal Rates of Interest
This is an argument thrown around thousands of times every day, each time instant cash loans online are brought into discussion. However, it can be taken for granted that in at least 99% of these instances, the exorbitant rate of interest the concerned party is referring to is the APR - or Annual Percentage Rate. Now, a 1,500% APR may seem a little/lot on the high side, but it has to be remembered that an APR is only relevant if the loan is taken out for a full year or more. Payday loans on the other hand are repaid usually within a month - most lenders never asking more than about 20% back by way of total interest rates, fees and charges combined.
It is easy to be frightened off by a high APR, but also too easy to forget what APR actually stands for.
Payday Lenders Deliberately Target the Vulnerable
Always a worrying accusation - do providers of instant cash loans online really go out of their way to lend to those they suspect cannot repay? Quite simply no - as payday lenders are for the most part small and independent businesses with little to no reserves of capital to back them up. As such, every penny loaned out represents a part of the business being put on the line which MUST be repaid. To target the weak would be nonsensical as they would not only be unable in many instances to repay the loan, but certainly have no chance whatsoever in covering any resulting penalty fees and charges.
Article Source: Ezine Articles
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