Despite the controversy surrounding pay day loans, they’re still a popular method of attaining short-term income. It’s true that pay day loaners are big losers ultimately, as they are effectively paying big bucks to have money in advance, but regardless pay day companies are in hot demand. So there must be something in it for these guys to keep going back, right? Let’s check out the benefits and drawbacks:
Quick and Simple
Sometimes we’re all just looking for a quick-fix at any price. A pay day loan will cover you short-term until you reach your next pay cheque. It’s basically a walk in, walk out job, with a little paperwork involved. This is really handy when you need cash right away.
Most pay day loan companies operate under a ‘no questions asked’ policy. It’s not like your bank – they aren’t going to ask you just how much you spend on lingerie every week. It’s a fairly private process and nobody needs to know about it. You can leave with cash in hand after as little as 15 minutes.
No Credit Check
Pay day loan companies don’t care about your repayment rates. This spells great news for your credit history, which doesn’t like to be looked at. It brings down your ratings. No peeking!
Once you’re stuck in the loop of borrowing money against your next pay cheque, they’ve got you. As soon as that debt isn’t paid off in full, you’ll be hit with astoundingly expensive charges and it’s very easy to find yourself in debt.
If you find yourself in financial trouble due to pay day loans, you’re going to just have to stop. Calculate how much damage it’s done to your finances with an online tool like: www.iva-expert.co.uk/debt-calculator.asp. The interest is extortionate on outstanding loans; sometimes as much as 500% per year. Is it really worth it?
Pay day lenders may look nice when you go into the room to take out a loan, but they are nasty guys. They’ll not only use indecent interest rates, but they won’t think twice about using forceful action against you, when they want the outstanding loan to be repaid. Expect them to behave illegally and viciously. Pay day lenders will stop at nothing to get that money back. That cash is lawfully theirs.
Sure, there’s hardly any paperwork involved, but take a close look at what you’re signing up to. Pay day loan companies will take advantage of your desperate situation. They’ll get you to legally agree to terms which serve the lender’s motives. This contract is not thinking about your welfare and promises to land you in big trouble later down the line.
More likely than not, you’re only applying for a pay day loan because you’ve no other option. You can feel trapped into this situation, rather than choosing it freely. Don’t go in there without a game plan.
Submitted for IVA Expert.