A Look at the Positive Side of Payday Loans
The negative publicity that hangs around payday loans is difficult to ignore. The horror stories of people losing hundreds of pounds to unscrupulous lenders aren’t entirely representative of how same day loans work and the potential benefits they can have.
Let’s address the negatives though first. There’s no disguising the huge APR that most payday loans carry. This means that you’ll be charged between 15 and 25% for the amount you’ve borrowed, even if that is only to cover you for a few days. Of course, when you compare this to a standard loan, which might be repaid over a number of years, this appears to be extraordinarily high. But let’s take a look at the flip side of this whole argument. Say you’ve been caught out by a few unexpected bills, your vehicle has been in the garage or you’ve had to do some emergency work on the house. If this is the case, and you don’t have a huge reserve of cash available, there’s a pretty decent chance that you’ll find yourself running short on money come the end of the month.
The U.S. Check Cashing, Money Transfer, and Payday Loan Industry
This updated analysis by Marketdata examines a little-researched service sector — the $6.56 billion loosely regulated check cashing, payday loan, and money transfer services (serving 35% of the US population). Many companies are happy to accept the business of consumers with spotty credit records who have been rejected by traditional banks, or the “unbanked” that choose not to maintain checking accounts. Explosive growth has taken place in the young payday advance business, which has come under heavy scrutiny. In addition, many workers in southern California, Texas and other areas wire an estimated $10-12 billion to relatives at home, contributing to…
Click Here to Check Out The U.S. Check Cashing, Money Transfer, and Payday Loan Industry
If this is the case and you don’t have the time or the credit rating to get an extension on your overdraft or to get a loan from the bank, what can you do? If it’s the case that you still have bills to come out of your account, then you’ll need to make sure that you have the funds available to cover these. Failure to meet any Direct Debit payment could see you go over your limit at the bank, which in turn will result in charges aplenty.
Slipping into an unauthorised overdraft brings with it a whole host of issues, not least the very good chance that you’ll end up paying out a fair sum in charges from your bank. Compounding this further is the fact that your credit rating will be adversely affected as a result. This in turn will make it difficult for you to secure funds in the future. In many cases the amount that the bank charges you will exceed anything that a payday loans provider will charge you.
In this instance, as with any other, the cheapest solution is also often the best. You won’t have to suffer the stress and annoyance that comes with contact from the banks and other lenders telling you that you have insufficient funds. This applies to any number of scenarios where having a shortage of cash could leave you spending more later as a consequence.
You shouldn’t take the decision to get a payday loan lightly. You should take the time to understand what it involves, what you need to pay back and whether you will be able to do so comfortably. Unfortunately it’s usually when people are under prepared or misinformed that issues arise. If you’re not 100% sure if this is the right solution, maybe it is best to avoid it. For those that have weighed up the pros and cons before coming to an informed decision, you could apply for a near-instant payday loan to get your cash by the end of the day. Taking out a payday loan could lead to you avoiding:
- Damaging your credit rating
- Missing an important engagement
- Added stress of debt
- Being unable to cover repair costs
- Compromising work or family life
