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Sure Money UK - Payday Loans Myths

Created: 2018-08-23 09:00:00

Over the past few years, payday loan lenders have faced a barrage of negative media attention. Of course, this kind of attention does not come out of nowhere and unfair lending practices as seen by several different providers in the past has tarred every lender with the same brush, even those who lend responsibly and fairly. Sure Money UK is one of the fairest and most transparent payday loan providers in the United Kingdom and wants to separate the myths from the facts. There are several negative perceptions about payday loan providers and short-term loan providers that put many people off applying for the credit that they need when they need it. It is important to see through these negative perceptions so that you are able to take advantage of the benefits that a payday loan can provide.

Payday loans are a rip-off.

The negative media surrounding payday loans over the last few years has portrayed them as being nothing but a ripoff. While it is true that the APR is much higher than those seen with high street lenders, such as banks and building societies, the amount of time that the credit is borrowed for is exceedingly shorter. In fact, a payday loan or a short-term loan can work out less expensive if it is paid back on time. Unlike other financial lenders, a payday loan is designed to be paid back over a short period of time, typically within 6 months. As an example, borrowing £100 from Sure Money UK for a period of one month will result in a total payment of £124. Of course, in an ideal world, you would be able to borrow £100 and payback just £100, but lending credit is a business and even your bank will not loan you money for free. When you take into consideration how quickly and easily a payday loan can be deposited into your account, the APR is actually extremely fair.

Payday Loan Providers Are Aggressive

While it is true that payday loan providers and short-term loan providers are well known to use marketing strategies that are aggressive, the use of force or threats when looking to collect past due payments is very much a myth. Every decent and reputable lender, such as Sure Money UK will only ever make use of professional, lawful, and fair ways to collect the money owed to them. United Kingdom financial regulations place caps on the amount of interest that a customer can incur, which is especially useful for those who are experiencing difficulties with making repayments due to financial distress. It is also worth noting that any customer who feels that their payday loan lender is coercing them, there are systems in place to file a complaint directly with the Better Business Bureau.

You are better off avoiding a payday loan.

Unfortunately, a few rogue lenders in the past have created the perception that a payday loan is better avoided. As noted above, payday loan and short-term loan providers use aggressive marketing strategies to promote their products. However, it is important to note that the demand for payday loans is increasing at a rapid rate. This indicates that there is a real need for these types of short-term loans and that they actually serve a real purpose in helping people during situations of urgency. It is true, that in the past, a few bad lenders went out of their way to charge extortionate interest rates but it is a very different situation today.

A payday loan can provide immense benefits to those who are in desperate need of financial assistance. When a short-term loan is taken out and paid back on time, they can prove to be the best type of credit available on the market today. Sure Money UK prides itself on its transparent and clear-cut policies. Making credit available to those who are in financial distress in a short amount of time saves thousands of people from unwanted and unneeded stress every day. Once you see past all of the misconceptions about payday loans and payday loan lenders, it becomes easy to see that they serve a very much-needed purpose for millions of people each year.