Moneyboat opens their website with a disclaimer at the top of the page. WARNING: LATE REPAYMENT CAN CAUSE YOU SERIOUS MONEY PROBLEMS. It is a valuable and affirmative warning that comes from the source directly. It acts as a reminder of what a payday loan is, and what it is not.
Thankfully, the company website has enough gusto to state this clearly for unaware consumers. Payday loans can be a tricky affair due to their higher-than-average interest rates and quick repayment periods. The website details all the interest rates and charges in a very clear area of the website. Thankfully, consumers can receive all that is needed to make a firm decision.
Furthermore, in the above warning, the company admits that payday loans can be a trap for many people. It is this kind of transparency and respect that is not often seen in the payday industry. Many companies strive for secrecy and ensnare people with unethical strategies to business. It’s an environment that can be unfair to consumers when it isn’t transparent and clear.
The problem often begins with consumers who treat payday loans like typical loans. They presume an extended period to repay and non-compounding late fees. They assume the system will send letters or be patient in repayment. The lenders are working in an environment that is not conducive to slow repayment and extended installments. The providers need to make this reality extremely transparent to consumers who try to use payday loans in a fashion not including one loan, one to four repayments in a matter of weeks. Anything else will move a consumer to a new territory of borrowing- a major bank.
Payday loans are not desirable, but they may be vital. They can be a powerful tool to getting out of a financial pitfall. They are not tools to getting out of a financial rut that extends for a long period of time. A payday loan is a band-aid. It could help foster faster healing, but it isn’t going to do the actual healing. This is a significant way to look at payday loans and to avoid late payment traps that can quickly become encapsulating.