The major advantage of payday loans is that that you can borrow for a short period of time. If followed with the correct intent and repayment terms the future holds a lot of promise. Though it is a lot appealing, but there is lot of controversies related to the same. Numerous instances have come forth where it is pushing into the cycle of bad debts. As a client it is suggested that you are made aware of the positives along with negatives of these types of loans.
- In line with other credit options, the main feature of payday loans is that you can obtain it in an easy manner. If you are facing a financial problem and this could be solved with the next check then this is a loan worth taking.
- If you are planning to avail this loan there is no need for any form of credit checks or you do not need a credit card as well. All you need is to be above 18 years of age with a valid id document and you are going to need a monthly stable income source as well. In addition you are going to need an access to a savings account as well.
- It is a convenient process as there is no need to deal with a lot of paperwork at the same time. What needs to be done is to fill in an application form and within an hour or so you are going to be made aware whether your loan is approved or not. Once the loan is approved the amount is going to be deposited in your account in the next few days.
- If you analyse it with other credit options, it happens to be the most expensive form of credit. As it is a short term loan the interest rates are on the higher side. As higher costs are very much part of these loans you are facing a difficult situation in order to get out of them as well. In the event of falling to pay the loan within the stipulated period of time the interest rates keeps climbing and climbing
- The chances of a customer falling into a trap is all the more. The income of these companies is normally from creditors who fail to pay the amount in time. What does happen is that the amount keeps on rising up and up and they are forced to extent their loans. The net result is that more and more amount keeps on adding to the original amount that becomes difficult to bear.
- With these form of loans there is bound to be a degree of deception. In case of companies who generally lend money there is bound to be a degree of deception as well. The borrowers do face the difficult situation where they cannot defend themselves properly. A lot of misleading information is provided that puts the lenders in a spot of bother.