Should I Take A Payday Loan?
September 7, 2016
Difficulties are a part of our lives, sometimes we come across certain hurdles that we find ourselves broke and out of all resources. What do we do when we really need to buy something at the moment or pay for the medical expenses of our self or a family member? Then what do we do? Ask our loved ones for money? Apply for a loan to the bank? Taking a loan from the bank isn’t even a possible option as a bank loan takes weeks to get cleared and most of the times the situation is urgent. So our best option would be lending money from a shark when everything seems gone? Or not?
Well we have a better option for you and it is called payday loans. Payday loans are loans that you take from certain companies or establishments. These loans hardly require any details about the person except address and workplace details, contact numbers. The loan is sanctioned in no time and you can pay back the organization within the sanctioned time. The catch of payday loans is that the rate of interest is very high. That’s the reason why it has come under a lot of criticism as it is said to decrease a person’s resources by playing to their needs. Though there have never been any problems from the debtors’ side.
PROCEDURE OF A PAYDAY LOAN
When a person needs money he gets in contact with a lender and they meet and decide on the amount. The debtor has to submit some basic documents and the lender will write him a check and they will decide the date the money will be returned back and depending on the amount the debtor will write the lender a post dated check, which will include the interest rates. When the date arrives then the lender will cash in the check an take his money back. If the check bonuses then the lender can sue the debtor or the lender will charge the debtor with extra interest.
The option of Payday Loans is mostly used by middle class families or low income families as they don’t have any other option. Payday loans have said to drain these people off their resources as they have to pay high interest rates later. The interest rates are sometimes as high as 30% of the amount and this is playing to people’s needs.
Payday Loans have even helped people. Areas that suffer from natural calamities fare way better if they have pay day loan organizations in the area. People Pikavippi heti so people who are out of money can apply for loans and feel free for the moment. The stress decreases therefore the amount of people who are drug addicts in a city with payday loans is way less compared to a city without pay day loans.
Many payday loan organizations have been criticized for foul play and for using of un ethical methods to get the money out of their debtors, like sending people to their home or workplace or by calling them at night and threatening them.