OKLAHOMA CITY, Okla., Feb. 25, 2014 /PRNewswire-iReach/ — High fees, higher interest rates, scams: these are probably the first few words to come to mind when you hear the term payday loans. The truth is much to the contrary. In fact, a new study by The Federal Reserve Bank of New York found that payday loans are actually cheaper. Covered by Community Financial Services Association of America, the report cites several areas where payday loans prove to be cheaper when compared to competing programs.
Among others, the report highlighted that median price was $27 per overdraft, whereas deferred deposit credit is priced with a typical fee of around $15 per $100. Further, 98 percent of OD providers charge a flat fee per overdraft regardless of the size or length of the loan. This is in sharp contrast to the practical strategies followed by payday loan lenders. Further, deferred deposit is cheaper than overdraft credit for small overdrafts.
This a completely different perspective from the long-bred reputation that the payday loan industry is subject to in general. As such, these insights are a different but more practical view of what has been widely published until recently.
The report debunks some prevailing myths about the cost-effectiveness of payday loans. Although criticized for higher prices, overall when you compare the prices dollar to dollar, payday loans tend to demonstrate distinct advantages, at least on a smaller scale.
Payday loans are not the cost drivers they are made out to be. Used correctly and for the right purpose, cash advance loan and payday loan programs can prove to be much more economical, convenient, and efficient. We have lenders that provide valuable service and save borrowers a lot of money. Furthermore, the overall application process is seamless and regardless of credit, explains Johnny Gordon, founder of Payday-Loans.org, a free consumer site that allows borrowers to comparison shop multiple payday loan programs.
In addition to the cost competitiveness, these short term personal loan programs often come without the formalities associated with a full-blown credit check. In comparison, overdraft and other similar programs require extensive credit checks and comprehensive income documentation. The timeframe for approval and processing also tends to be much longer when compared to pay day loans, adds Gordon.
http://www.payday-loans.org/ in a one-of-a-kind marketplace for comparison shopping short term payday loans. Hundreds of lenders, a wide range of programs, lower interest rates, and a dedicated and passionate staff of customer service professionals are just a few of the many reasons for choosing Gordons company over the competition. The company has been around for nearly two decades and has enabled tens of thousands of borrowers (all credit types, including bad credit) to shop and apply for extremely competitive cash advance and payday loan programs.
Media Contact: Johnny Gordon, Payday Loans Organization Ltd, (818) 533-1996, firstname.lastname@example.org
News distributed by PR Newswire iReach: https://ireach.prnewswire.com
SOURCE Payday Loans Organization Ltd