A Short Look Of The Myths Related To Payday Loan Advances

Posted by Isaac Nicolay | Posted in Bad Credits | Posted on 24-08-2011

Whenever something becomes popular like this, myths always tend to abound. Most are put about by so called media ‘experts’, usually trying to scaremonger people into believing things are not as they seem. In fact it is usually quite the reverse. The myths tend to put out the exact opposite of what is actually true.

It is often simple to see that these myths are based on assumptions, hearsay or manipulations of facts, rather than any real subject knowledge. As far as the myths surrounding payday loans are concerned, the previous statement stands out because if the myth mongers were armed with better knowledge of the industry, they would see that these myths do not stack up.

Myths can be negative viewpoints and started intentionally. Others happen by accident as the subject matter gets involved in more discussions around the place, and facts get distorted or taken out of context.

This is classically displayed in the constant barrage aimed at payday loans involving sky high interest rates as depicted by ridiculously high APR’s. There is an issue here as the lenders have to display an APR by law. This problem arises because an APR is intended to show the amount of interest attraced in a 12 month period. A payday loan runs for a period of between 7 – 31 days, and not 12 months. So how can you logically apply a calculation to work out the interest charged in a year for a loan that lasts a couple of weeks? 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.
Hopefully you will see how daft some of these myths really are.

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