Why Have Payday Loans Got Such a Bad Press

Payday loans are often looked down upon by people. The one day payday loans are also in this category. People class them as very expensive and unfair.

The loans are designed to be very short term and the borrowers are expected to pay them back at their next pay day. However, there are sometimes cases where people just cannot manage to repay their debt and they get charges and further interest and the loan can end up being very expensive. In fact the normal interest rate is similar to overdrafts and so it is not comparatively expensive. However, it is worth making sure that you read all of the terms and conditions and make sure that you are fully aware of all of the charges and any fees that might apply when you take out the loan and if you are not able to make the repayments. As long as you do this, then there should be no nasty surprises.

There are some people that have not been able to pay back their loans for a significant period of time and this has meant that they have built up a good deal of debt, fees and interest charges and these are the cases that have been getting a bad press.

They are also quite a new development. People tend to be afraid of new things and are therefore more likely to say bad, rather than good things about them. With not many people having tried them, there are not that many satisfied customers to send positive words by mouth and so the bad reputation tends to stay over the good one. People would also rather talk about bad experiences than good ones and so you are more likely to hear about the bad things.

Payday loans are often from lenders who are not well known. The main high street banks and the old building societies tend not to have these types of loans and so with a lender you do not know, there tends to be mistrust around the loan. However, it is easy to do research on the Internet and find out more about the lender, so you can put your mind at rest, should you not have heard of them.