Life is a series of unprecedented events that dethrone us of our comfortable seats regardless of our positions in the society. In such topsy-turvy situations money could help us over come lots of obstacles that come our way. What if one doesn’t have the money? Quite possible. That’s when Payday loaners have huge role to play.
What is Payday Loan?
It is money that is lent to you for a short period of time, usually at a high interest rate. You’ll have to repay the loan on your pay day, that is on the day you receive your payment. These money lenders lend you their money without much of verifications. The loan process is so fast that in 24 hours of your application for a Payday Loan you are paid the loan amount in full. Such Payday loaners are wolves disguised as sheep. Such loans carry substantial risk to the borrowers which the poor so called ‘borrowers’ come to know very late.
Process and the Risk
The process of gaining a Pay loan is very simple. The needy have to visit the Payday lending store and secure loan. The money lenders would then initiate a simple loan processing where in your bank statements would be checked and then you will be asked to render a post dated check in full amount including the processing fees. On the day of the maturity the borrower will have to come back to the store in person and repay the amount with interest.
A study conducted by US consumer Watchdog regarding the Payday loans reveal astounding truths about it that the default borrowers are trapped in a cycle of debt. The once pleasing and kind lenders become so savage if the borrower fails to repay the money. Their unfeeling behavior would be embarrassing to a civilized society like ours. They, in their quest for money, are not concerned if the borrowers can afford to repay the money or not as the loans carry high fees and must repaid quickly. According to another study by the same bureau the people who obtain such Payday loans are usually poor people whose income ranges $20000 to $40,000.
The Payday lenders charge higher interest rates than traditional banks and in effect are depleting even the little that the poor people have. The Payday lenders ignore the usury limits and the regulations that are set up by the Federal Regulatory Committee. The fees for the Payday loans vary according to States and Countries. However, a typical payday loan’s interest rate will be between $ 10 and $30 for every $100 that is borrowed. In addition, they charge the borrower with a late fee if the borrower is late to repay the debt.
Peace and Payday Loan
None likes to borrow but borrowing happens when we are drawn back to the wall or when we don’t see any other way out of our financial troubles. It is a big, decisive step that affects our peace of mind perhaps for the rest of our lives. If we have taken one loan it starts haunting our mind and we lose sleep over it. The pleasantries that had coaxed us would have turned to a devilish grin.
Aggressive Collection of Repayment
It is like opening a can of worms. Once we open the lid it is our headache to bear. Money lending shops are like the outer covering of a Can which beautiful, persuasive and catchy that mesmerizes us. Once the loan is taken all the hells break loose. They attack us and force us to even borrow another loan in order to repay the loan one had already taken and then it becomes a vicious circle. We cannot put an end to it, even if we wish. That’s because of high payday loans interest rates that they might even change without a prior notice. Such money lenders are merciless with their customers. They threaten you with dire consequences if the money has not been paid. Some go to court for initiating a criminal prosecution.
However, as there are two sides for the same coin the proponents of the Payday Loans have a different version to all these negativities that plague it. They believe that the “money in Need is money Indeed”. They are of the opinion that what use is of the money when you don’t have any need of it? The money lenders are doing, they say, a great help by lending money to the borrowers.
Author’s Bio: – Jason Scott writes on a number of topics covering Finance, and has been a freelance writer for the past few years. Thus, visiting this website i.e. http://www.Payday-Loans.net will help you in getting the information on how to get rid of financial problems.