Payday loan lenders get a lot of slack for their services. Although they provide convenient loans, they generally charge high-interest rates and require short-term payback periods. Consequently, all over the web articles condemn these businesses for ‘predatory’ lending practices, grouping all lenders under this one derogatory blanket term; in turn, many people desire to outlaw such services altogether.
Undeniably, there are plenty of predatory lenders who mask loan terms and prey on the financially vulnerable. These lenders make it difficult for customers to determine the actual cost of a loan, which encourages irresponsible borrowing. But not all lenders subscribe to these practices. There are many reputable online and onsite payday loan lenders who strive for transparency in their transactions. These lenders want their customers to understand loan terms, interest, and repayment stipulations and do their utmost to clearly state their policies in order to protect their customers.
Certainly, payday loans can be dangerous if used irresponsibly, which is why reputable payday loan lenders encourage usage only when absolutely necessary. Reputable lenders also make it clear that the borrower must pay back the loan on-time and in-full. It is up to the borrower to take these warnings seriously, to take the time to research the reputation of lending companies, and to establish a budget that eliminates the need for such services in the first place.
If a person fails to abide by a payday loan lender’s stipulations, he/she is to blame. Upon signing the loan agreement, said person is guaranteeing repayment. If he/she is unable to do so when the time comes, it is not the fault of the loan lender, so long as the lender was forthright and honest with loan terms and conditions. Loan lending is a business; like any business, they are there to make money.
It is the responsibility of the lender to provide the terms and conditions of the loan upfront, but it is the responsibility of the borrower to live up to these conditions and terms. While an unscrupulous lender can be condemned for misleading borrowers, a reputable lender cannot be faulted for lending–that is what it is there to do. It is up to the individual to research what lenders are most respected in the industry.
Taking out a loan from the first company that pops up in a Google search is a bad idea. Before borrowing, a potential customer should read customer reviews, study loan repayment stipulations, and fully research the company they are doing business with. Doing one’s homework can prevent a lot of misunderstandings and protect the borrower from predatory lenders. Predatory lenders will not be opaque or forthright. If a lender seems to be hiding information, they probably are. It is the borrower’s responsibility to do due diligence prior to entering a loan agreement.
Furthermore, the individual should take accountability for their own financial distress. Creating a budget that anticipates unexpected costs will reduce an individual’s reliance on payday advances. While it isn’t always easy, a potential borrower should take every precaution to avoid being in the position wherein he/she needs to borrow. Desperation often leads to bad financial decisions. Having a safety net and plan of action in place for life’s fiscal surprises will make it easier to get through the tough times without becoming a victim to predatory lenders.
By taking responsibility for one’s self and one’s finances, individuals can ensure a more pleasant payday loan experience, should the need for one arise.