Sameday payday loans have been attracting a lot of attention these days, both from potential as well as disgruntled borrowers. While one group of people swear by its usefulness, another group has burnt its fingers badly with these loans and have only bad things to report about it. What is the truth? What, after all, is the purpose of these loans? When should a person avail of these loans?
They are short term loans
The loan amount is small, ranging from $50 to $1,500
These loans are high risk loans and therefore charge high rates of interest
They are easy, convenient and hassle free and may be availed immediately
The above characteristics show why these loans are so popular with borrowers. However, since these loans are easy to avail, it is only natural that they are used for purposes they were not meant for. So, what are the top reasons to avail of payday cash loans?
Emergencies: Even with meticulous financial planning (or without it), people often find themselves in a tight corner. It could be sudden illness, repairs or other unforeseen circumstances. Whatever the reasons, when an emergency crops up that has not been planned for, most people need to fall back on other resources. They could fall back on their savings or turn to friends and relatives. If these alternative resources are not available, then, the only way to meet the emergency is to apply for a loan. However, not everyone is eligible for conventional loans. Conventional loans require good credit history. More importantly, the process of availing the loan is time consuming. Therefore, if the need is immediate and the borrower does not enjoy impeccable credit history, then payday cash loan is the only help they can hope to enjoy.
Friendly terms: Although payday loans have been attracting the wrong kind of attention and critics cite them as charging very high interest rates, the ground reality is totally different. The high interest rates pointed out are actually annualized rates that are not really paid by consumers. Most responsible working persons avail these loans only for short periods of time, like 2-4 weeks.
Age factor: Many young people who have just stepped out of college and are into their first job need the additional financial help, particularly when they are new to the concept of financial planning. There are several issues to be dealt with, like housing, insurance and so on. Besides, for the young, there is no stigma in availing of these loans.
Recession: With many households depending entirely on the wages of one person, the need for sudden and quick cash advance is often severe. In sudden emergencies, most people find that these loans are a huge blessing as they are convenient, hassle free and fast. When trouble comes knocking on the door, there is little time to be wasted.
Convenience: If you are sure of paying the loan back on time, then payday cash loan is a very convenient way of getting money quickly. These loans are available online and they may be deposited into your bank account in less than 24 hours.
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