A Short Look Of The Myths That Are Attributed To Payday Loan Advances

There has been an amazing rise in the popularity of payday loans over the last couple of years This is primarily due to the total lack of availability of credit in this lending sector.

Whenever something becomes popular like this, myths always tend to abound. Quite often, these myths tend to start in the media, usually trying to scaremonger or cast doubts on a subject or product. The myths tend to put out the exact opposite of what is actually true.

This is usually down to the fact that the so called experts tend to base their myths on hearsay and manipulations of facts instead of displaying a real understanding of the subject in question. It is quite obvious that this is the case with the myths surrounding payday loans because if the myth mongers did have any knowledge of the industry, they would see that the very myths that they started have no substance.

Sometimes myths are started intentionally in order for someone to get a negative viewpoint across. Another way is when facts get distorted or taken out of context when the subject gets involved in more and more discussions all over the place.

A classic example of this is where the media try to bring down payday loans by claiming that they have ridiculously high interest rates as depicted by the huge APR’s that are advertised. There is an issue here as the lenders have to display an APR by law. The problem with this is down to the fact that an APR is a calculation of interest accrued in a 12 month period. A payday loan runs for a period of between 7 – 31 days, and not 12 months. With that in mind, how appropriate is it to use an APR on a product that lasts for days instead of years? The result of using an APR is a grossly over exaggerated illustration of the facts, actually distorting reality.

I recommend that you watch a video that depicts the top 5 payday loan myths and offers the real answers, follow this link: payday loan myths.
You will hopefully gain an insight into the reality of the situation and see how silly some of these myths are.