PayDay Loans Discovery

Payday Loans have quickly became part of everyday life with most people not paying too much attention to them. Since the economy has been slowing down around the world and salaries have stagnated or have been inflated away, plus prices of energy and every day services slowly rising, it’s no wonder people find paying all of their bills on time a major problem. Payday loans companies are here to make life a bit easier as long as you use their loans discreetly and smartly. Like with any form of loan, payday loans have their good and bad sides, and here you can learn a bit about those so you can figure out if payday loans are what you need to help you with your finances.

The Good:

-Very easily obtained

It’s been getting easier and easier to get your payday loan approved with each passing year, especially in developed countries like UK where standards are moderately high as are the expectations. The paperwork behind obtaining a payday loan is very literally a joke and one can even set everything up online, without having to go to the loaning company in person to negotiate the deal. Just a few clicks of the mouse and you can have the money you need to pay your bills or cover unexpected expenses, at least until your next salary comes in.

-Not related to credit card ratings

This is also a pretty big difference when compared to your regular loans. A bank will pull you through a lot of paperwork, will do background checks on you and will consult your credit score and all of the data it can lay it’s hands on before your loan gets considered or approved. A payday loan company doesn’t reference all of the data available to banks and as such they’re much more lenient when picking their borrowers. Even if your credit card score is low you’re most likely eligible to pick up a payday loan (as long as you actually have a job)

The Bad:

-Small loans

Payday loans are not the kinds of loans you pick up if you want to renovate a home or buy a car. The amount lent out is usually very small, several hundreds euros at most. These loans are enough to cover any bills you have outstanding immediately but they’re not the kind of loans you pick up to handle your finances long term.

-Very expensive

Speaking of long term finances handling, a big downside to using payday loans all the time is the fact that the interest rates on these things are very, very high. Of course, if you’re in a pinch, you’re not going to be paying too much attention to the fine print, which is what loaning companies abuse and make people fall into much bigger debts because of their financial policies. A regular bank loan interest rate is about 15% while payday loans can have interests of 30% or even higher than that.

-Addictive

This is not so much of a down side of a payday loan as it is a flaw in human nature. Having quick and sure access to money if one needs it in a hurry gets people to try out payday loans, then start using them in everyday finances. This is not a good idea, it’s always best if you don’t have to pick up a loan, but men and women with no restraints have been using payday loans irresponsibly and have gotten themselves in a much bigger mess than if they haven’t turned to a payday loan company for help.

While it makes most sense for people to make a cache of money they can tap into for their expenses, including holiday shopping, Black Friday and similar events, doing something like that has been getting harder and harder. The salaries stagnated, the prices of everything rose and now most [...] Continue Reading…

The Payday Loans companies have been popping up left and right lately. Initially it’s UK that was host to this form of lending, but soon the concept spread across the globe and people could apply for fast and easy loans to cover their bills without having to go through [...] Continue Reading…