Lets discuss some statistics before we fragment this myth. About 30% of individuals have acquired a short term loan as a mode of emergency cash at least once. Now, if these loans had actually increased peoples debt or have taken them to a point where they are no longer able to pay the high interest rates, we would have seen thousands of people going bankrupt every year. Yes, we do see people going bankrupt, but these individuals are people who were never able to manage their debt correctly or there were too many unfortunate financial disasters in their lives.
Usually, everyone who takes a short term loan is able to repay it within time and is also able to avoid late payment charges on their credit cards. This in-turn improves their credit rating and makes them eligible for larger loans in future.
What if there were no such things as same day loans or pay day loans? Anyone in a tricky financial situation would end up screwing their credit ratings and it would be hard to pay back the accumulated late fee payments.
This proves a point that its not the short term loans that is a problem, but a lot depends on the individual who takes up such a loan. Also, if short term loans were so bad, governments around the world would have easily banned companies and lenders giving away such loans.
Another important thing to note is that people who receive these loans are mostly happy to receive emergency cash and are able to repay it without any problems.If you are nervous about such loans, be mindful about the above facts and apply confidently.
If you are nervous about such loans, be mindful about the above facts and apply confidently.
