Advertising about Payday Loan Providers has become quite frequent. People suffering from debts and debt stress have been slowly finding comfort in Payday Loan Providers, failing to realize that this act will only bring them in deep water before payday.
A payday loan takes place when borrowers give their next few pay checks to their creditors to cover the money the latter gave them. However, payday money is usually spent on bill payments and other loan payments leaving the borrowers with another financial burden. Man that is disastrous!
Some financial experts say payday loan default is a trap. Advertisements make it seem like a solution. What these do not tell the viewers is that their interest rates are high and can be up to 700% per annum. Also, some of payday loan providers do not disclose their annual percentage and other fees and charges on their advertisements just to attract more potential borrowers.
Fortunately, not all providers are that evil. There are those who show complete information on their advertisements and websites and teach you to make use of the government’s MoneySmart website to seek further information and guidance about money management. Other good providers will also advise you to call your bill issuer to apply forfinancial hardship before you take out the loan.
Nonetheless, a lot of experts still do not advice giving in to payday loans as they will only worsen a consumer’s financial situation, insisting that there are a lot more financial options and solutions available.