The price of a
payday loan is always in the news. The states are trying to regulate them to
protect their residents, other banking industries try to discredit them by
focusing on high annual interest for a two week loan, and people are falling
into further debt. Online payday loans are usually targeted as predatory by the
mainstream news, but their popularity with customers is growing.
It isn't just
the online lender who gets the bad reputation for being a predator, but the
storefront locations, banks and credit unions who participate in the short-term
loaning process as well. A payday loan is a paycheck loan is a payday advance
or any other name the lender wants to call it. The setup is very similar. There
is quick and easy access to money. There is a price to pay for obtaining one of
these loans. Convenience carries a higher price. Go to a
"convenience" store and look at the price of a soft drink or snack
compared to those which are sold in the grocery store. You are paying more the
ease of running into the corner store for a few items.
Complaints
about the cost of these online payday loans are scare tactics to prevent
customers from applying for loans. It is always good to know the ins and outs
of the loan before the transaction is complete, but do these reports look at
payday loan customers as not intelligent enough to make a financial decision?
Let's say I
need a new coffee pot. I like my coffee and it is important for me to get a
good machine. So I go to a store which sells decent coffee pots. I buy one
which I think is reasonably priced and take it home. The next week I am surfing
the web and find the same coffee pot for forty dollars less with free shipping!
Have I been duped by the original store? I obviously paid more than I needed to
for my coffee pot. Now I know there will be no consumer advocate groups
fighting for my rights as a shopper. It basically was me wanting the coffee pot
and buying it on the spot instead of doing some research prior to the purchase.
I could have saved twenty dollars.
How many more
items have I purchased that were overpriced or I could have gotten them at a
lower price? It all adds up. Payday loans are low cost when you take the time
to find one who does not charge exuberant fees. If regulations in your state
don't allow the industry to loan in a certain way and you find a company who
will, are you making the best decision for your finances? Shop around before
you sign for the loan. Many customers will find that there is a better price
for that short-term online payday loan without making such a rushed decision.
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