Posts Tagged ‘payday’


Why Use A Payday Loan?

Posted by Emily

The average payday loan consumer takes out cash advances or small personal loans for immediate and unexpected emergencies that may be for, but not limited to, common necessities such as food and gas. It is a great option for those who are in need of immediate assistance.  With the economy in the plummeting condition that it has been in, it is not unthinkable that more and more families would find themselves in situations where a few hundred dollars on a short term basis would come in handy. In many cases, what has happened is that many  have used up financial resources and savings to cushion themselves during job loss or other economic stresses. Once those resources are used up, it can take many families months or even years to replenish their savings. Additionally, for those who have recently become employed, there also may be instances where a short term would be useful especially in cases where ordinary savings may have been unexpectedly depleted or inaccessible. In those cases, payday loans can provide temporary relief to individuals who may not have enough sufficient time to wait until their next paycheck.

Payday loans often have reasonable fees ranging from $16-$52 depending on the amount of the loan. The benefit usually far outweighs normal fees associated with the loans.   In uncertain times, many consumers have voiced that they are glad to know there is an option of immediate cash available on a short term basis.  Life can bring up many unplanned surprises. Now that online payday loan services are readily available it takes one less unknown factor out of the equation. Today it is easier than ever to apply online. One can do this without faxing and do so simply by entering a few lines of info and get approved quickly.   Click here

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OFT Does Not Like Cap on Payday Loans

Posted by Al

UK’s consumer watchdog, Office of Fair Trading (OFT) decided to stay away from recommending a cap on payday loans and other charges imposed on borrowers by the payday lenders. Some payday lenders in UK apparently charge up to over 2,000 percent of interest rates and fees. The director of OFT said ” Our report has found that people who use high-cost credit have limited options and find it difficult to exercise what choice they have to obtain the best deal.”

OFT director believed that putting a cap on payday loans would not solve this problem but creating better lending options so consumers don’t have to take a high interest loan in the first place is a much better solution. They also believe that control could reduce choice and eliminate competition.
It is very interesting find very similar points to the ones we were making in our earlier article we wrote earlier on this blog on payday loans caps.

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