As traditional outlets for loans become harder to find and are requiring larger and larger amounts of paperwork for even small loans, payday advances have stepped in to fill the vacuum. They’re available day and night, seven days a week, and in many cases, the process is so fully automated that loans are granted without the borrower ever having to speak to another person. After applicants have established a track record of successfully paying off cash advance loans, some lenders only require applicants to text the amount of the desired loan, and the term of the loan desired, and the money is instantly made available.
So Why Would I Pay the Added Interest?
Sometimes it’s an unexpected emergency, or it may be that an opportunity has come up you couldn’t possibly pass up. Is it tickets to the playoff? Has a friend obtained access to ringside seats at the “fight of the century”? Or maybe you have committed an unforgivable sin and forgotten your significant others’ birthday…
Whatever the reason, you’re short on cash. If you haven’t got credit cards and maybe your friends and family are not in a position to help out. What do you do?
It’s increasingly common for those in immediate financial need to approach a short-term lending company for a “payday loan”. These loans are often unsecured, meaning the borrower has no collateral to provide. This makes the loans a high-risk cash advance for the lending company. If the borrower bails, there’s nothing of value to collect. They compensate for the increased risk by charging very high-interest rates.
The applicant usually must provide proof of employment and government-issued identification. The idea is that when the applicant’s next paycheck is issued, the funds will be used to pay off the loan. In some cases, the loans may be made for the borrower to purchase a car or other big-ticket item.
In these cases, there is somewhat less risk involved for the lender. The item may be repossessed should the applicant fail to repay the loan as promised.
Payday loan can be great helper on the emergency time. But it can be so risky in some situation. If you have caught in payday trap you can seek help for your payday consolidation from a good payday loan consolidation company. They can solve your problem easily.