Common Myths About Cash Advances
There have been various negative misconceptions put forward by some media concerning cash advances, presumably with the perception that the old adage of “money lenders” still prevails today. In the twenty first century, the world of financial dealings is vastly different from that of the old style roaring twenties, when loan sharks and their poor victims were considered good news and talking points.
The reality for every person is that the constantly changing economy and rising commodity prices create emergencies, where cash injections are needed. This has caused the various myths surrounding cash advances and those who perpetrate them. Cash advances meet a specific consumer demand. They are available to help consumers extricate themselves from financial emergencies, or improve their living standards, such as with renovations to their homes.
An especially popular myth regarding lenders is that they prey on the poor and financially desperate. This is now reviving the past, as the average borrowers of today have been proven to be college educated and employed in qualified occupations. This myth is promoted with another dramatization, which alleges cash advances are designed to entrap their victims in a never ending cycle of expensive loan debt. Again, it has been shown that cash advances are helpful, but dependent on the financial standing of the borrower.
Another perception put forward is that cash advances are very expensive, with high interest rates. This is repudiated by the fact that any borrower is only approved for a loan, based on their salary and not a credit score. The risk to the lender is therefore greater, due to the convenience of the loan and its accessibility. Similar to any other business, such as the stock market, greater the risks, higher are the rewards and here, the rate of interest.
It does seem that the creators of these myths are either self sustainable people, who have never experienced the financial problems associated with normal living; or they are enmeshed in their own wonderland!