Payday Loans Do Not Only Benefit the Lender
There is a rumor going around the payday loan world that these payday loans only benefit the lender. This is rather far from the truth. The fact of the matter is that these small short term loans benefit the borrower as well. After all if they did not benefit the borrower, why would so many people be getting payday loans every day?
When it comes down to it, more people would much rather pay the fees with the payday loan than they would pay an overdraft fee on their checking account. People are tired of banks and their fees and having to pay for services that should be free. More and more people every day are seeking out alternative financial institutions. If these institutions and lenders did not offer services that benefited the borrower, why would there be people getting these services for the first time every day?
Not everyone has someone that they can turn to in an emergency. It does not matter what type of emergency it is. Sometimes people do have someone that they can ask for help but do not want to admit to that person that they need help. This is a great example of when a payday lender can help out these people. Having the option of turning to a payday lender for a small short term loan is something that many are happy to have.
Emergencies do not make up a large percentage of the payday loans that are out there though. The majority of these loans are to pay for every day expenses. Where you sick and unable to work so your check is small because you had to miss a day or two? Payday loans can get you through it and help you pay your bills or whatever expense you need it for.
One thing about payday loans that can really benefit the borrower is that when payday does come, if you for whatever reason you are unable to fully pay back your loan you can get it rolled over until your next paycheck. There is usually a fee associated with it but this is more often than not less than an overdraft fee.
The truth is that payday loans do benefit the borrower. Those who say that they do not probably have never had the need for one of these small short term loans. People are getting the help that they need from payday lenders everyday all across the country. There are people who have used payday loans more than once, if they did not benefit from it, why would they keep going back?