Payday loans is a very controversial topic recently because critics argue that the lack of regulation leads to unscrupulous lenders taking advantage of the most distressed borrowers.
In fact the main advantage of these short-term loan can become a major issue if they are not used properly.
Indeed the benefit of payday loans are that it is very easy to obtain one as long as you are employed and receive a regular pay check. If so anyone can fill an application online and receive cash directly transferred into his account, usually the same day, often in just a few hours. And this is true even for people with a bad credit history as no credit check is conducted. So for example even people who are barred from getting a credit card or people who have filled for bankruptcy could get a quick cash advance this way.
It sounds good and at the core there is nothing wrong with payday loans. It should be used by people who have a sudden need for cash like a medical bill, who have not enough cash now but will get cash soon from their employer. The problem is that a number of users are households which are already financially distressed and opponents say that these credits make the situation worse because of very high rates.
Yes the cost is higher than other forms of borrowing, but this is understandable given that no credit history is necessary plus it is nearly instantaneous. This solution should only be used by people who earn money, are financially balanced but have an unforeseen need for a few hundred dollars or pounds. Not by people who are on the cusp of poverty with no understanding of how to balance their own personal books.
Because you do not want to miss a payday loan payment, as this is how fees and added cost start to compound. Let’s say someone does not pay on time, so now he may use another payday loan just to pay for the first one, and he will have to pay in total twice the fee, so he needs to reimburse even more. If this continues to happen there is a snow ball effect where his debts keep on rising. And if he uses multiple lenders and multiple loans, plus other loans like car loans or personal credit, then you see the picture.
For all the above we have created this site, paydayloansbestlenders.com, because it is clearly important to only use the top of the class lenders. You do not want to be charged hidden fees and you want to be able to speak to someone in case of a problem. This is what the best lenders provide. Do not use any operator except the best ones and your borrowing experience will be a walk in the park.