Investigative reporter David Cay Johnston takes a step into the new financial industry and analyzes payday loans – a product that helps people deal with emergency expenses but can also burn a hole in their budget if misused. In a face-to-face interview with Gregory Allen, CEO at BadCreditCashASAP, David Cay Johnston uncovers the real meaning of payday loans and the key to benefiting from them.
– Suppose a child asks you what are payday loans; how do you explain it to them?
I consider it incredibly important to educate our children on financial matters from an early age. In their first years, children are a lot more open to learning new information. The apprehension itself is much easier for them. So I would start by explaining what loans are – a process where a person or a company gives another person or company a sum of money that the latest should return in an agreed period. I would then tell them that payday loans are the same loans, but people should take them short-term only until they can get money from their salary. I would also suggest to the children that they should carefully think about whether they need to borrow money when they grow up and take loans themselves. They should know that they will have to return not only the original sum but some additional cash too – what adults call fees and interests.
– Is it true that payday loans have a bad reputation? Why is that?
Yes, it is no lie that many people raise awareness about payday loans and label them as “a bad product.” The reason for that is that people sometimes lose money on additional fees when repaying the loan. The unpleasant extra-spending is often caused by negligence with the due dates and the sloppiness when signing the contract. In the lending industry, we do not think there is such a thing as a dangerous loan. We rather believe that there is a lack of information on how to handle this financial help correctly.
– Would you take a payday loan yourself?
As a financial expert, I would take a payday loan online same day because I am sure that I will be going through the process responsibly. As a regular citizen, I would also say yes to financial help in case of a crisis. However, I would lie if I said I wouldn’t be ten times more skeptical about the product. Our generation was not raised, believing that there is a possibility to get quick funds from the comfort of your home. We fear the product because we don’t fully understand it. This status can be changed by reading financial blogs, asking experts, and trying out the services yourself.
– In your opinion, do payday loans bring more help or damage to one’s budget?
This question is tricky. Financial experts have designed payday loans to help people in an emergency. Banks and credit unions usually don’t offer overnight cash advances, while with payday loans, you can get them. People with bad credit are, by default, denied personal loans from most lenders. In contrast, payday loans with guaranteed approval and no credit check allow these people to resolve a financial crisis quickly. Payday loans can damage if people don’t respect the contract terms, as not paying off on time. However, if you approach the contract clauses properly and rely on a trustful provider, you have nothing to fear.
– How to choose a good payday loan provider and not be trapped in scams?
It is vitally important to inform yourself of the provider before borrowing. We know that it is very stressful to be in a financial crisis. Still, you are doing your future-self a favor when you take the time to read about the lender and the product. At BadCreditCashASAP, we have always been advocating for equally available financial literacy for every citizen. We encourage our future clients to carefully analyze the service they need, the amount they want to borrow, and, most importantly, from whom they are borrowing it. We can only be sure about the integrity of our products and services. We cannot speak for all the other entities in the lending industry. Therefore, borrowers have to research it themselves carefully.
– You mentioned having as a mission equal financial education for everyone. How does BadCreditCashASAP work on that exactly?
Firstly, we take time to explain all terms on our website, so there is no room for confusion and scam. Secondly, we publish regular financial blog posts based on current events. Thirdly, we filter and update our FAQ sections so that everyone can be informed about the product and know all the small details. Our team is always open to answer as many questions as clients or future borrowers have. We do it in the most honest way possible by familiarly explaining the basics and avoiding any unclear terms that our clients may not understand.
– Speaking of unclear terms, many financial industries use catchy words to attract and even scam clients. What is BadCreditCashASAP’s policy on that?
Purely attracting potential customers with catchy products is a win-win situation: the industry gets a new client, and the client receives a helpful product. However, it is only a win-win situation when the sparkly title does not limit the information. We have made it our primary responsibility to fully inform our client on the product, explain the risks, and what to be aware of before offering them the deal. We have made our website an informative platform, with a team working 24/7 to answer questions. Besides explaining our product in full, we always give clients alternatives to the service, so they know all their options before making the best choice.
– Are there any alternatives as helpful as payday loans, though?
It depends on what you have set as your priority. If you need money desperately, you could always borrow from friends or family. The downside of that is the lower limit of the sum. In case you prioritize a more considerable amount of money, we suggest selling personal stuff or getting a part-time job. However, in this case, you have to be very flexible on the speed, as it can take you up to several months to get the necessary sum. In conclusion, no product comprises all the benefits of payday loans. Still, there are alternatives people can find helpful in each situation.
– Besides educating citizens on responsible lending, what other values does BCCA stand by?
We are very proud to have achieved a spotless track record. We maintain it by making the client a top priority, as we keep all their information highly confidential and safe. We respond to their questions and concerns 24/7 and do our best to reduce the period in which the client will get their requested funds. Looking at the bigger picture, we customize our products to reach affordable lending for every citizen and continually educate them on their options.