Saturday, May 29, 2010

The Controversy Surrounding Same Day Payday Loans Goes on Unabated, Why?

You'd have to be on another planet or at least not be paying close attention to have failed to notice the growing presence of payday loans across the broad media spectrum.
With this growth in its availability payday loans have seen a corresponding growth in negative publicity, with many people questioning whether such a form of unsecured loan provision should even be legal. As questions are asked in Parliament and popular culture begins to take notice it is becoming clear that there are rumblings of change within the payday loan industry as people begin to question its validity. The central point in this debate to me seems to be whether the individuals who use the service understand the exact terms and conditions and are aware that it is designed for emergencies, to cover a person until they are paid, and not for regular debts or financial shortfall. Taking a payday loan without being able to repay is a very foolish act indeed, and will only lead to further misery.
Believing in a person's ability to make decisions for themselves, I feel that this form of lending is valid in the context of a person falling short and needing to have some extra money until they are paid, and once they are paid being fully sure of their ability to repay the initial loan. Problems seem to arise when people take out payday loans to cover debts that they cannot afford to begin with, falling into a cycle of debt which spirals ever downwards, creating problems, stress and ultimately financial misery.
My advice to anybody considering taking a payday loan is firstly to ask themselves honestly whether they can afford to repay this loan or whether they are just simply papering over the cracks, so to speak, in a manner which is only likely to cause further problems. Also, one should always consider the other options are available. The best possible solution, If needing some extra money until they're paid is perhaps to ask a close friend or family member. Although I am more than aware that, especially in this time of financial uncertainty and double-dip recession extra cash is not easy to come by, and many peoples family friends are in just as much of the financial straitjacket as the person who requires money. With all things considered same day loans, payday loans, or whatever you wish to call such forms of finance do have their place and as I've seen from first-hand can be something which actually enriches a person's life insomuch as it enables them to cover an emergency which otherwise may have escalated causing untold problems.

Thursday, May 20, 2010

A Quick Guide to the Pros and Cons of Payday Loans

Payday loans were virtually unheard of a few years ago, yet in the past two years or so numerous companies offering this form of finance have begun to advertise online, set up stores on the high street and even market their products through TV adverts. As such, most people have heard of payday loans even if they know little about them and have not taken one out. However, there are many people that have taken advantage of them to help them pay bills and make it from one payday to the next. Some of those people will tell you that they love them whereas others have gotten into a financial mess as a result of them, so should you consider taking out payday loans when you are struggling or not? Read on to find out more.

So what exactly is a pay day loan? It is literally a relatively small loan, usually of less than £1000, that is approved by a lender and due to be paid back on a specific agreed date. It may be that you have an unexpected bill that you have not budgeted for one month or that you have expenses that exceed your income on a temporary basis. In either scenario, payday loans could get you the cash that you need quickly and enable you to pay it back when your next pay packet comes through.

As with all financial products available today, there are numerous advantages and disadvantages associated with pay day loans at the moment. Dealing with the advantages first, the main one is that payday loans can literally get you out of a tight spot. If you have no savings to draw on and need a small financial boost for a short term purpose then it can really offer the solution that you are looking for. Of course, there may be a fee and there will definitely be interest applied to the loan but this expense may be worth it if there is no other option. In addition, pay day loans companies do not discriminate against those with poor credit histories. In many cases, they do not even perform credit checks, instead asking only for proof that you will be able to afford to pay the loan back.

However, if something sounds too good to be true then it usually is and pay day loans certainly have their disadvantages. Firstly, as previously mentioned, there will be interest applied to the payday loan and it can be as high as 300% to 400%. That is only if you pay it back on time as well so imagine what it could end up costing you if there is a problem. This brings us neatly to another disadvantage. If, for whatever reason, you cannot pay the debt back then the interest will continue to be added along with charges and this will soon double or even triple the debt. Paying it off may therefore become impossible.

Whether or not you decide to take out one of the many payday loans that are available, you need to weigh up the pros and cons and make a decision that suits you. It may mean taking a big risk but as long as you are comfortable with that risk then it may well work for you. However, if there are other options, such as savings, friends, family or even regular loans then it is worth considering them too. Never rush into payday loans because they will definitely come back to bite you if you do. Instead, take your time and work out the best course of financial action for you.

Tuesday, May 4, 2010

Fast Payday Cash Loan - Play Safe While Getting It

If people are on the hunt for a fast payday cash loan they could be going through a variety of situations ranging from dealing with an unexpected tragedy to taking a last minute trip to Vegas to have a shotgun wedding. Regardless of whether an individual is looking for a fast payday cash loan for a reason that is very serious and time sensitive or spur of the moment fun, they will search their options until the money surfaces and they can go about life as they has planned. Some examples of a variety of serious situations that would require a quick financial solution involve a car accident, an illness, a ticket or other violation, a natural disaster, or unexpected home repairs. If a car accident occurs, the individual may have to pay for tickets, car repairs, and court fees. They make also have to pay for a rental car in order to get around while the car is in to shop. If a rental car is not available the individual may be missing work while the car is in the shop and the loss of income may prompt them to look for a fast payday cash loan to get by in the mean time. Sickness is another reason why someone may need of some quick money. Hospital bills, Ambulance fees, medicine, special food, nurses, medical devices, etc. all cost money that a person may not have been expecting to spend. There is also the expense of missing work in the case that sick days are not offered. When an individual has a deadline approaching for a speeding ticket or some other sort of legal violation, it is important to pay this on time so that other legal actions are not taken. Late fees are accrued after the late on the ticket. If an individual ignores the due date, they are likely to end up paying quite a bit more than necessary.
Being part of a natural disaster such as a flood, tornado, or fire can result in a huge financial burden for a homeowner. Needing to replace furniture, clothing, and many other personal items can be emotionally devastating and financially draining. Making home repairs and fixing the structural damage caused by the disaster can be a stressor also. Find the money to replace carpet, dry wall, and repaint is impossible for many families. Finding a way to borrow a sum of money may be the only way they can afford to make the repairs. Another huge stressor involves paying for unexpected home repairs. Because many people in the United States live paycheck to paycheck, setting money aside to fund broken appliances, plumbing, heaters, and air conditioners is just not feasible. Seeking out a fast payday cash loan may be their best option to ensure timely repairs. Serious situations such as a car accident, an illness, a ticket or other violation, a natural disaster, or unexpected home repairs could require a fast payday cash loan. A person going through any of these situations is likely to be under a lot of stress. Finding a way to make the necessary payments on time will alleviate some of the financial pressure caused by these scenarios.