Almost all online service companies have testimonials posted in their web sites. These testimonials are supposed to be actual experiences of actual people who have actually availed of the services. But with the Internet a haven for scams and schemes, one can never be too sure of what one is reading. And this applies even to payday loan testimonials.
What They Say
Usually the testimonials attest to the ease and convenience with which the payday loan was processed. You will read statements ranging from the terse to the verbose. If the service was made via the Internet, the site's easy navigation and clear online forms will be cited. If it was made through phone, the friendliness and professionalism of the company representatives will be praised. And if the borrower went to the premises, both of these features will be lauded.
On the flip side, and only if the company is brave enough to post them, there are criticisms. Though these are usually mild complaints, a potential borrower still needs to look into them. You certainly do not want to be unpleasantly surprised when these criticisms affect you.
There is one common thread running through all these payday loan testimonials. There is ease, convenience, quick release, and profuse thanks for the services rendered.
Cause for Concern about Testimonials
For one, you never know if the testimonials are facts. Fictitious names could and have been used, but if there is an e-mail address you could always ask the concerned person. This is also one way of getting referrals to reliable credit facilities.
The fact that there is no mention of the interest rates should also be cause for concern for a first-time borrower. If it is possible, only resort to a payday loan when absolutely necessary or avoid facilities that charge these usurious rates. But since the very nature of the loan - short term and risky - requires that higher than normal rates are charged, then you must look for the company that charges the lowest rate and the easiest payment terms.
Rollover or Back-to-Back Payday Loan
What the testimonials also do not say are the possibilities for incurring rollovers and back-to-back loans. If you extend your payday loan by payment of a fee or when you advance a new loan to pay the old loan, then you are availing of a rollover. In a back-to-back loan, you pay off the existing loan but immediately borrow again. Basically, you put yourself in a cycle of debt that, if you are not careful, can be vicious.
How is this possible, you ask? The penalty fees, interest charges, and other payments can be cumulative as your debt is continually extended. You will find that you are paying more for the costs of the loan than you are actually paying for the principal itself. In the end, you might become dependent on this short-term loan in the long run.
Thus, whenever you read testimonials about payday loans, use your common sense. Never believe everything you read and hear. Find out for yourself.