Are Short-Term Loans a Scam?

Are short term loans a scam? The answer might surprise you, the actual answer is no. Many people become dangerously deep in debt due to credit card debt or bad credit loans.

Short term loans such as payday loans are actually beneficial to consumers. If you are low on cash at any time during the month then you can secure a small loan. You will not go into debt if you pay back the money that is loaned to you. The loan is also not reported to the credit reporting bureaus either. Credit card balances are constantly being reported to the three major credit reporting bureaus,

Many people take short term loans such as payday loans to cover expenses that they have. Most people are paid biweekly now. If you have an unforeseen expense in a week when you are not paid then you need to find a way to come up with money quickly.

Most people do not take out short-term loans to make frivolous purchases; they take out these loans as a last resort. People will tell you to avoid these loans but they are a much better option then just charging your credit cards.
Credit card companies charge consumers high interest rates on their purchases. If you take a cash advance, this amount of interest can increase by as much as ten percent. This will hurt your overall credit card balances and will be harder for you to pay off in the long run. Every month that you carry those large balances, you incur more and more finance charges which cost you a lot of money.

Short term loans are very efficient and are available to anyone regardless of how good or bad their prior credit history is. Credit card companies will give you lower credit lines due to your prior credit history. Most credit card companies will even turn you down if you do not have good credit and meet their income criteria.

The only criteria is that you provide proof of identity, proof of income, proof of address, and social security number so that you can secure your loan. Then, you can pay back the money as soon as you are paid and then the matter will be resolved.

If you are in a pinch and need money then you should consider short-term loans such as payday loans. You will not regret it and it will help you stay on track financially.