October 6, 2021
Payday loans are a popular form of borrowing money and offering solutions to people with cash flow problems. Payday loans are short-term loans that are easily borrowed and can be repaid when the next wage arises or cash flow is available.
Payday loans industry
It is the hard truth these days that the payday loan industry in the Ireland is not in its best shape. The image of the industry has been tarnished for several years now because of the unfair practices being taken in the industry.
People are using unfair lending practices and hence leaving a stain on the industry and giving birth to other perceptions which are not necessarily true for the industry.
Hence it is even more important to discover these perceptions and decode them for you to be able to enjoy the benefits of payday loans. Many lenders offer online small loans in Ireland that are payday loans and are beneficial for people.
Decoding misconceptions about the industry
1. It’s all an unfair practice
The negative reputation payday loans have earned nowadays is not entirely true and should not be wholly believed. It is more so because of the negative publicity about the unfair lending practices.
While the purpose behind payday loans is to help borrowers with small amounts of money for a shorter period, which often the lenders are not interested in giving, hence the bad word spread in the market.
By believing in these myths, we fail to understand that these are small and short-term loans in Ireland that have been designed for the cases where unexpected expenses occur.
Hence, there is nothing wrong with availing of these loans as long as you carry the responsibility and handle them.
2. Payday loans are traps to rip off people
The negative publicity around payday loans has led people to believe that these are the ways of ploys to take advantage of people who need cash. This is far from the truth.
Payday loans are one of the best options in the short-term loans category, which helps settle emergency cash crunches and needs. Provided you intend to meet the repayment obligations, you are good to avail these loan options.
Just be aware that like any other short-term loans, pay-days loans also become expensive if the repayment is missed or delayed than what has been agreed.
3. Only lenders take benefit from payday loans.
This is another miss conception about payday loans that lenders are the only ones who benefit or profit from these loans. On the contrary, the borrower is the one who actually benefits from a payday loan as it is easy to get whenever required on easy terms.
These loans do not have a waiting period like other traditional loan options and do not require any collateral or credit background check.
The loan features are in favor of the borrower. In contrast, lenders only benefit from the interest which the borrower is paying, which is also lower if the borrower is paying on time or in advance.
4. There are hidden fees and conditions.
It is one of the common misconceptions lenders attach hidden fees and terms & conditions to payday loans, which isn’t the case. It is because most of people do not go through the terms and conditions while taking the loan and hence tend to believe the misconceptions are running around the industry.
The Ireland payday industry is very much regulated where lenders have to disclose the terms and conditions and fees structures beforehand. Hence, it makes it impossible for lenders to add any extra cost for a hidden fee or conditions once the loan has been taken.
5. Payday loans are for grave financial problems.
People tend to believe that payday loans should only be taken when you are in grave financial problems or financially broke.
As discussed above, payday loans are a means to provide help in emergency cash crunch situations, and hence taking a payday loan does not mean that it is for some financial crisis.
If you are taking a loan, it would just mean that you do not have access to your money at that point in time, you need some cash help, and you are borrowing from a professional lender rather than a friend or family.
In fact statistics also indicate that most of the payday loans are taken by middle-class or financially stable people.
6. Loan customers are forced for collections.
Some of the payday loan lenders are guilty and infamous for using aggressive marketing tactics to take out money from the borrowers; however, they generally do not use threats to collect dues.
In fact, the industry’s reputed payday lenders are lawful and follow professional means to collect the dues.
Still, if the customer is feeling or facing any forced or coerced ways of collection, he or she can file a complaint against the lender with the Better Business Bureau.
If you can let go of the misconceptions around payday loans, you can benefit immensely from payday loans. Payday loans are considered amongst the best types of short-term loans available today on the condition that they are taken, used, and repaid on time.