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Predatory Payday Loans?

At one point it appeared that the entire payday loan business was made up of a small group of loan sharks out only to make a buck off the backs of anyone who would take out a loan. This perception has changed in recent years with new regulations. Payday loans are even able to help some people save money!

At first look the interest rate appears to be pretty high, but it is often much less expensive than some of the alternatives.

Now we will look at some common misconceptions about these loans. First, payday loans are overly expensive, well probably. Of course being expensive is only relative to what the alternatives are. Taking out a payday loan instead of bouncing a cheque in most cases is a cheaper alternative. Fees for bouncing a cheque are quite often much higher than the interest paid for these loans. This is not just marketing hype by the short term loan companies, it is a fact.

If you calculate the costs it is easy to see the benefits of the payday loan over the bounced cheque. Next it is claimed that payday loans prey on the poor and under employed. However, this is not the demographic that these loans are targeted to. Industry numbers prove that the loans are not targeted to people who cannot afford to repay the loan. It would be foolish to loan money to people who can’t repay. In fact, the people who use the payday loan services are generally lower to upper middle class and have incomes in a range of thirty six thousand dollars per year. If this is the case why do they turn to short term loans then? Because it is fast! Payday loans can be deposited into a person’s account in minutes or hours and not the potential several day a bank may take. A main point is credit rating. Most people the avail these loans have less than perfect credit for whatever reason.

When something happens unexpectedly these people have few alternatives to get the cash they need to make it through the situation. Now, it has been said that payday loans cause people to get into a cycle of debt that harms them further. Well, no one forced the person to take out a loan and if they did so knowing they couldn’t repay, it is not the responsibility of the loan provider. What it amounts to is the borrower not exercising good judgment and perhaps not being honest about his finances. When these people avail a loan knowing they money will not be available to repay it, it is the individuals fault, not the loan companies. The loan was not made without the borrower’s consent. The borrower had to apply and sign an agreement stating they have the ability to repay on time.

No one was forced into the contract. The perception of a loan shark is not deserved and is actually far from the truth. Most of the people whom are hurt by payday loans are the people who knowingly enter into an agreement they can’t honor. There are some exceptions though, and the loan companies gladly work with these people to get their money back. If the loans were predatory as has been claimed, fewer people would actually be able to repay the loans and the companies would go out of business quickly, but this is not the case.

Instant Cash Loans – for all kinds of financial emergencies

Instant cash loans are a new trend catching a fast pace. These days taking a loan has become very simple and quick. You can get a loan within one hour. Instant cash loan companies help their customers connect with instant cash loans which get funded within an hour. No matter what the purpose of the loan be, be it your car breaking down, a personal loan, home loan, or anything else, instant cash loans can save you on a lot of time and hassle of going through long unending paper work and formalities. Instant cash loans can be your saviour in the time of need, be it your pending phone bills or other expenses piling up. Instant cash loans are the perfect solution and you need not go through unnecessary and frustrating formalities any more. Instant cash loans companies are on the rise and fast spreading all over the world. All you need to do is pick the best one out, one that offers a favourable rate of interest and is reputed. Although instant cash loans companies are available online too, you should be extremely careful if you want to go in for an online instant cash loan and trust only reliable and established sources.

Instant cash loans are the answer to all your urgent needs for short term cash. Payday loans are also a type of instant cash loans as they are funded to your account almost immediately and are paid back on your next payday which is certainly good for you. They are becoming increasing popular these days simply because of the ease of availing them. They are called payday loans as the whole process is integrated with the date of your next pay check and are custom made specifically for those purposes, for instance one might run out of money a couple of days before his or her pay check arrives. You can apply for instant cash loans in two ways and choose whichever seems more convenient to you. The first way is to avail an instant cash loan over the internet. The other is to choose an instant cash loan company and visit them or talk to one of their representatives. Online loans are more hassle free as you simply need to fill out a form and attach the required documents, although both ways are equally fast and respond quickly.

The criteria for application for an instant cash loan are pretty simple. Your weekly income plays a big role in determining the amount of loan you are eligible for. If you have a history for availing loans and paying back on time, you are usually entitled to bigger loans. If you want to avail an instant cash loan, all you require besides the application form is your recent bank statement, employer information and a proof of recent financial activity. Instant cash loans can be availed for all kinds of emergencies. Pick your loan company very carefully and weigh aspects like the rate of interest, payback period, etc, well in advance.