Payday loans don’t always get the best rep, that’s for sure.

There are lots of rumors floating around out there regarding them, many of which are disparaging enough to put people off going down this borrowing route. Instead of taking this perfectly safe and sensible lending route, they ask their employers for cash advances or they opt to take out long-term loans. Both of these financing options are helpful in times in need, but it doesn’t make them any more helpful than payday loans. Simply put, short-term loans are just as effective as any other lending options, and we’re here to prove that.

 

Here are three myths and preconceived misconceptions surrounding payday loans that you shouldn’t believe for one second:

 

Myth: Payday loans are expensive and will cripple you with high interest rates

 

You’ve no doubt heard this one a thousand times before. The truth is, payday loans aren’t as expensive, and their interest rates aren’t as high as you may think. They cost just as much as any other type of loan to take out, and the fact that they don’t demand annual repayments means that they actually cost less in the long-run than their counterparts. When it comes to interest rates, the average fee you can expect to pay when you take out a payday loan is 15%. $15 interest on a $100 loan — that’s not bad at all!

 

 

Myth: Payday loan companies keep borrowers in the dark with regards to terms and additional fees

 

This one’s a flat out lie! Payday loan companies cannot keep borrowers in the dark with regards to terms and additional fees, simply because the U.S. federal forbids it. According to Investopedia, the Truth in Lending Act (TILA) declares that payday loan companies must disclose everything with their customers before they enter into an agreement with one another.

 

 

Myth: Payday loan companies are just out to get your money

 

As is the case with most other forms of financing and borrowing, certain payday loan companies are more reputable than others. That much cannot be denied. It is wrong, however, to claim that all loan providers cannot be trusted and that they are all just out to get your money. Some go above and beyond their primary goal of lending money by actively helping people to save cash, and this should be applauded.

 

Take Cash Lady, for instance. Alongside providing a trustworthy borrowing solution, they also provide retirement planning advice. As stated on their website, they endorse the FIRE Movement (Financial Independence, Retire Early). In their export article on the matter, they provide the following helpful tips for people that want to retire comfortably in their 40s:

 

 

Consider the three myths about payday loans listed above officially busted!