No, Payday Loans Really Aren’t That Bad If You Know What You’re Getting Into

Especially in today’s tough economic climate there seems to be an influx in the amount of people who are taking out a payday loans, or at least considering some type of quick cash advance.

Many people however, feel uneasy about doing this, or perhaps think that they will get themselves into a money situation that they cannot get out of, that is, not being able to pay back the money that they borrowed.

It makes sense that people would feel this way, and it’s admirable if people do not want to potentially overextend themselves even more than they already are. That being said however, when used appropriately direct payday loans can actually help a person get back on their feet quickly when they’ve been put in an unexpected, and often, sticky situation.

It could be said that no payday loans are bad, and a good subset of the world’s population and business thrives upon their existence.

While these types of cash advances are not meant to be a cyclical occurrence or a long-term solution to anything, being able to obtain one and promptly pay it back, is an excellent local credit builder as well as a confidence builder for the person who has obtained the loan. In the right direction towards being financially responsible is being able to make financial goals and meet them.

Principles used when appropriately paying back short-term cash advances can be applied over the longer term to other areas of one’s financial life that may be causing problems.

In general, direct lender payday loans can be made for up to 25% of your income, so long as it does not reach the maximum amount that the lender is able to give. These limits, as well as the rest of the qualification process ensure that, as much as possible people are able to pay the money they borrowed back quickly, and not end up in a situation that could adversely affect their ability to borrow money in the future.

The person says to themselves, “no, payday loans are bad,” then, they might not be looking at the full picture. These types of direct payday loans understandably have a reputation that makes many people weary due in large part to the fact that the large amounts of interest associated with them is often highlighted by the media.

However, the repayment time frame is so short that even though the interest rates seem incredibly high, in the end not that much additional money is expected to be paid back particularly in comparison to a larger loan taken out over a longer period of time, so that aspect alone should not be the deciding factor in whether or not a person takes out short-term cash advance.

As long as people know what they’re getting into before they filled out the application, and are willing to educate themselves before they just expect the money to be dropped into their bank account, then cash advance payday loans really are not that bad at all.

In fact, I would go so far as to say that no payday loans are bad whatsoever so long as they are obtained through a reputable lender and paid back quickly.