Monday, February 9, 2009

Debunking Payday Loans myths

The truth about Payday Loans

The truth about Payday Loans

What is the truth about payday loans?

It is a myth that Payday loans may eat you up. Some financial pundits and the prominent grapevine would have you believe that instead of being your savior, payday loans are your killer. This is far from the truth.

Why would payday loan lenders want to push you into debt?

If the lenders of such loans intend to push you deeper into debt, how are they going to stay in business? They want you to pay them back as much as you want to pay them back. It is never going to be the intention of good lenders to push you deep into a hole of debt where you would not be able to dig out of, because they need you to pay them back.

Moreover, they don't lend you more than you can pay back on your next payday. If the borrower is not able to pay that back, it is not the lenders who got them into trouble but the borrower, who should have been more responsible with his or her money. This is not just for payday loans, but for credit card charges and other types of loans. No one should take out a loan if they have doubts about repaying it.

Be strict about repayment

For your own peace of mind, make sure to only take any loan if you are sure you will be able to repay it. Forget about the half measures, like paying a portion and leaving the rest for another payday. This is not the way to manage payday loans. You have to simply make sure that you will pay back every penny that is due when it is due. This is a loan meant to ward off a crisis and not so much a loan to repair debt (although there are ways you can repair debt with a payday loan, too). If you have serious debts, you may want to consider another type of loan, a debt consolidation loan. ... click here to read the rest of the article titled "Debunking Payday Loans myths"

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