Clarity For Consumers recently published four payday loan findings, a group that works to bring clarity to credit reports and individuals. The larger the knowledge base an individual has, the more informed functional decisions will be made when financial problems occur. To remove blind spots and have open eyes is needed to create financial wisdom. A borrower may believe that a low-cost payday loan is necessary. With this in mind, is the credit card or payday loan pushing you ahead or getting you behind in your finances?
First Finding: Low-Cost Payday Loan For Car Repair?
The first finding stated that for every ten borrowers, one of those used the low-cost payday loan for car repairs. Automobile repairs are one of the more advertised ways to use these short-term loans. In fact, the findings came out to show that the majority of the people were getting their tires repaired. Whether or not these findings are accurate shows that many borrowers are using the payday loan as lenders suggested. Rather, payday loan borrowers are sticking with these cash advances when it’s necessary since they hadn’t planned on that car or tire setback.
Second Finding: Wants Vs. Needs
The second finding showed that 65% took out a payday loan within 24 hours of contemplating a purchase. In particular, impulsive shopping is widespread in our society. Credit cards have given people the avenue to shop beyond their means. When there are no credit cards to use, people continue to shop by other means. An online payday loan can be obtained within 24 hours, leaving little time to rethink a purchase. To prevent this, wait a week before purchasing the product. Give yourself time to talk yourself out of it or find a sale. Payday loans are never a good idea for impulsive shopping, especially if your income will not support the full payoff in a few short weeks. We have limited resources to support our living expenses: rent, food, utilities, transportation, etc. Therefore, we need to avoid credit cards and payday loan debt for our ‘wants’.
Third Finding: True Cost of Borrowed Money
Four out of ten people surveyed admitted to knowing how much a payday loan will cost. Three-quarters of the people were aware of the interest rates associated with the loan. This leaves one in five users who took out a payday loan without any idea of how much the loan would cost. Twenty-five percent did not know the interest rate, which would be applied to their loan. These last two findings are overwhelmingly disturbing because individuals are making money transactions without knowing the costs involved. It is nice to see that the majority of people are informed about these short-term loans. Again, perhaps payday loan borrowers are not as uninformed as we think. They know what they are getting into with borrowing money.
Fourth Finding: A Positive Payday Loan Finding
Forty-eight percent of the consumers who took out the payday loans and repaid the loans back felt good about their experience with the short-term loans. When used according to the time payoff time frame, these loans can be quite cost-effective. The initial cost of the loan, which is added to the payoff balance, is often a more effective way of keeping credit card and bank fees away. Borrowers who loan and pay them back with their next paycheck are more likely to have had a pleasant experience. An outstanding customer service team and the experience will keep customers returning for future loans when finances become too overwhelming.
How To Apply If Needed
Online payday loan service receives cash advance requests from both new and reoccurring borrowers each day. Many companies charge some of the competitive fees found online. Spotya! is a service provider that promotes both responsible lending and borrowing. Our application is found on our website, it’s an easy 3-step automated loan process. There are no credit bureau checks from Transunion, Experian or Equifax. Your bank information and payday loan history are the determining factors for loan approval. After submitting your loan application, it takes minutes for a response. If there are any questions and concerns, there are customer service representatives ready to receive your call. Please borrow responsibly and only in financial emergencies so that you don’t drown in debt.
