Payday Lenders Mislead You: How to Avoid Traps


Is financial stability an unachievable dream? For many, it is like that. And as well it is something everyone strives for, as it is very important to be able to support yourself during tough times and as well during good times. And exactly for that reason, people often take on payday loans. But today, there is a lot of controversy around it.

How It Started

Payday loans are basically quick, short-term loans that allow you to receive money based on how much you earn and help you with little expenses. And ever since they came to the market, they became extremely popular, and the demand for them grew rapidly. But as we all know, the higher the demand is, the more popular a product is, the more people want to profit from it.

And by that, we mean people who want to sell different products much more expensive, create traps and confuse the customers. The exact same scheme applies to payday loans – people started finding new ways of fooling others, and right now on the market, it is extremely easy to get into one of these traps. And it leads to the next reason why controversies appear because the number of people with bad experiences grows, and naturally, people are more willing to share their negative stories than positive ones.

Real Case

In Canada, there was a very clear but as well sad accident with fake lenders in Toronto. A woman in her 50s had only one aim, and a kind one – to help her daughters. And because of that, she took on a payday loan, but then, unemployed and at the start of a pandemic, she ended up being deeply into debt, and the number grew – no matter what her first initiative was, she got herself into these traps. Her debt is close to $5000. But how can one avoid such problems?

How To Protect Your Wallet

To have extra protection takes a lot of attention. When receiving payday loans, for example, it is important to look out for lenders and know where to dig. We want to warn you and tell you about 6 tips on how to avoid traps:

  • Ask your friends – arguably the most secure way of finding the right company for your payday loan. Friends are a safe resource of information. Many may say that it is embarrassing to talk to your friends about your financial status and if you are in trouble, and moreover, debts are not something to discuss with your friends – but all of that is not right, as your friends have to be your support with it. Another question you might ask is that what if none of your friends have tried payday loans – and here as well, it is not entirely true, as friends of your friends and their mates most certainly have tried it, because instant payday loans in Ontario are very popular. So getting advice from your friend is a good idea.
  • Feedbacks – on every website, there should be feedback, and many service providers show them in order to show how good they are. And here we should give you a major warning, as feedback is often false and fabricated to attract more customers, so you should not trust what you see right away. What we can recommend here is to try to search for additional feedback on google or any searching service, because, of course, lenders won’t show you the bad side, but on different forums, it is easy to find honest reviews about payday loan providers. Always double-check the information you find online, especially about loans.
  • Read carefully – when signing your final papers, make sure to read all the documents. It is extremely needed, and in no way should you be lazy about it. Because many lenders are very much aware of how not attentive customers are to details and they use it – put the most important details to the places where people usually don’t read – whether in small fonts or somewhere in the middle of an agreement, parts that are usually skipped. So we highly recommend overcoming laziness and spending proper time on documents, agreements, and so on.
  • Watch YouTube reviews from bloggers – to get an even better review, you can’t just stop on feedbacks on google, it will be even better to make entire research on the topic – and youtube is your key to it, as out there you can find the most real and sincere reviews, as they are based on the real experience. As well most of the time, these youtube bloggers share the entire process as well, so you can get an even better look at it through someone else’s eyes. It is extremely helpful to listen to as many stories like that as you can before making a final decision.
  • Get professional advice – as well as an extremely helpful part of doing research – and seeking professional help can be done in many ways, starting with asking a friend who works in a bank, watching videos of professional notaries, or reading articles from professionals. All of these options can lead to a changing point in your decision.
  • Ask questions prior – communicating with a lender is very important, so in no way should you be afraid of asking additional questions and simply have conversations. For some reason, for people, it is hard to communicate with lenders, as they are under pressure of their authority and are afraid to look too annoying or stupid because of a fear of being misjudged by society in general. However, it is wrong to do so, and people should understand that they are in power here and that the one who takes on a loan is always in a position of power, so it is only in your interest to ask questions prior to signing.

Loans these days, however, are receiving even more popularity. And especially because of the crisis that coronavirus has brought us, people are desperate for money to be in more or less stable situations. That is why payday loans are in high demand now, and fakes appear faster than you think – to avoid getting fooled, follow our tips. Protect yourself from unwanted scams.