Payday Loan Myths - Know The Truth About Payday Loans   by Mark Westjhn

in Finance / Loans    (submitted 2011-02-28)

Are you struggling financially right now and are considering borrowing against your paycheck but don't know if you should because of the common myths about payday lending? This article will breakdown the most common myths and tell you the truth about payday lending.

Every Day Myths - Payday Loans Aren't Safe & Will Rip You Off

Loans against your paycheck are safe short term loans that are meant to last on 2-4 weeks max. UK Payday Loans and US Payday Loans won't rip you off or steal your money because they have contracts that everyone can understand and are a quick and easy way to gain access to short term funds.

Payday lenders are looking for people 18 years old or older, the applicant must be working in their current job for at least 6 months and have a valid bank account.

With payday lending you will have the ability to be advanced $100.00 to $1,500 until your next payday. Each contract will come with a finance charge of $10.00 or more depending on the size of your loan. The finance charge or APR (Annual Percentage Rate) is higher than a long term contract because a Payday Loan has a very short term compared to traditional loans that are for a longer period of time.

More Myths To Ignore - Payday Loans Are Only For Poor People

A recent study showed that 94% of people who use paycheck lending, had an income range between $25,000 & $50,000 USD; so this is proof that just about everyone is using contract lending to help cover their financial needs. Many people who were able to get loans from the bank with ease or apply for new credit cards just a few years ago are turning to payday lending because credit rules have changed with the recent recession. Payday lending is popular because they work.

About the Author

Mark lives with his wife in the UK. He is no stranger to tough times. If you need a little help, Mark suggests you check out payday loans UK. Though only a temporary fix, payday lending can help you when you need it the most.