How are payday loans different from other loan products?
In recent years, the demand for payday loans has been growing rapidly in the UK. The overall number of consumers using payday loans has already crossed the 1.2 million mark says a survey report. This shows that more and more people are opting to go for payday loans as it is quick and ensures easy accessibility to cash in the hour of need.
Payday loans are an ideal choice for many who would want to repay their debt with the next paycheck. Moreover, long term loan products offered by other traditional lenders are considered a worst choice for people who are willing to pay-off immediately within weeks. Given the fact about borrowing options, a wrong call could actually have a consumer ending up falling prey to vicious debt cycles.
However, in-spite of these benefits that one could get with a payday loan, payday loans has remained a subject matter for debate for long; as most skeptics wonder whether to have them banned forever or still have them. No doubt people who try default loan repayments and a few who would have actually succeeded in doing so, have added fuel to the fire. On the brighter side, these loans are in-fact comparatively cheaper than an unauthorized bank overdraft from any major bank in UK.
The short term products offered by payday loans cannot be availed of from major banks or even from leading credit card companies and that is an important factor to note as well. In general payday loans are for short term purpose and benefit those who are willing to repay within a shorter time duration.
The major highlight about payday loans is that they are quick, convenient and flexible to acquire and repay. The most appreciated aspect is the easy access to funds on the very same day of application. Remember, people who are caught in the swirl of credit crunch have no patience to wait for weeks or even months before they could actually get the loan amount processed to their bank accounts.
The major drawback that traditional lenders pose to their borrowers is the significant length of time taken to process the loan amount. Quick processing time and no bad credit checks differentiates loans offered by payday lenders and traditional lenders. The less time taken for the approval process in payday loans is the key advantage that instigates a borrower to choose payday loans at crucial times, which traditional lenders lack.
Payday loans are offered to people of all classes but in reality it is widely preferred and used by the hard working class. These loans are basically devised to help during emergency situations; typically when you’ve over-shot your monthly budget. Given the opportunity to choose between a long term and a short term product for a temporary purpose, payday loans remain the best choice for millions.
A quick summary of key benefits in acquiring payday loans: used for short term purpose; helps overcome unexpected expenditures that crop-up between paydays.
Quick, convenient and flexible in repayment, payday loans can be acquired within 24 hours. No one willingly would commit to repaying on a long term basis for a short term requirement. And when the possibilities of repaying the borrowed sum go along with piled up interest rates, it is all the more threatening. Remember long term repayment process is a burden to shoulder but a short-term repayment module offers a quick sigh of relief.
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