123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Investing---Finance >> View Article

Payday Loans Can Offer A Quick Cash Fix When You're In Trouble

Profile Picture
By Author: Martin Sumner
Total Articles: 434
Comment this article
Facebook ShareTwitter ShareGoogle+ ShareTwitter Share

Being in a situation that requires access to funds that are not available can be extremely stressful for people. Financial burdens and pressures are often ranked among the leading causes for divorce and stress-related illnesses. The good news for people that live in a paycheck to paycheck financial world is that there is a solution when emergency cash needs arise.

Payday loans are short-term loan product designed to help people faced with the situation just described. Lenders offer consumers access to quick cash, or direct deposit funds, in exchange for a moderate fee and a modest repayment term. Fees for payday loans are usually a little higher on an APR comparison with other loans. This is because the loans offer convenience in a time of need, and lenders often take on greater risk from the loans. Because of the speed with which most payday loan customers need access to funds, lenders often use a much less restrictive application process in order to accommodate customers. This increases their risk, and thus the costs.

While the fees associated with the loans do not justify their use for non-essential purchases, ...
... payday loans do offer huge opportunities for people faced with emergencies. Common uses of the loans include unplanned car repairs, unexpected or high bills, and any other short-term cash need. As the name suggests, a payday loan is offered as a short-term funding need in advance of a paycheck. Thus, repayment periods are usually shorter, most of the time a matter of a month, or a few months at most.

Loan amounts vary depending on the borrower's qualifications as well as his relationship with the lender. Most lenders have a maximum initial loan amount, which is gradually increased as the borrower builds a relationship and credit history with them. As many lenders now operate online, the application and approval process for the loans is extremely convenient. Many lender sites promote instant approvals based on the borrower's credentials and predetermined set of decision criteria. This means a prospect could apply and get an automated approval in moments with some companies.

Often, companies promote payment within one business day for approved loans. This is important, as the borrower is looking to meet an emergency need. Borrowers need to be responsible with use of this type of loan. It is of great benefit to people in true need, but it is not a good source of low-cost funding for fun purchases.

About the author: Martin writes for http://www.ukpayday.co.uk/ who offer fast payday loans to UK residents with a variety of financial circumstances.

Total Views: 229Word Count: 422See All articles From Author

Add Comment

Investing / Finance Articles

1. Chart Patterns For Effective Intraday
Author: strike

2. Analysis Of Bank Statements: Essential For Banks And Nbfcs
Author: Aakash Parikh

3. Essential Tips For Buying Crypto Miners: Make Informed Decisions
Author: blockdag

4. Everything You Need To Know About Applying For A Swift Funds Loan
Author: Sofia Alice

5. Finding The Right Mortgage Broker In Abbotsford And Surrey, Bc
Author: Satbir Bhullar Mortgages

6. Jaydeep La Residency Thane Kolshet Road Project 2 & 3 Bhk Flats
Author: akhilagardas

7. Embracing Sustainable Investment With Esg Data & Solutions
Author: By Inrate Team

8. The Importance Of Lead Qualification In Solar Appointment Generation
Author: Shan Tait

9. Setting Up Your Company In Ireland: Key Considerations For Successful Formation
Author: LSC and Partners - Corporate Tax Consultancy LSC

10. Mortgage Lenders edmonton – How Are They Going To Help You
Author: Dominion Lending Centres Ratefair

11. Why Managing An Smsf In Perth Can Maximize Your Retirement Potential?
Author: Daniel Stewart

12. The Future Of Cryptocurrencies: A Look Ahead
Author: Ethan

13. Unlocking The Power Of Biodiversity In Data Solutions & Rating Services
Author: By Inrate Team

14. The Role Of Chartered Tax Advisors: Ensuring Compliance And Maximizing Benefits
Author: Business Tax & Money House

15. Innovative Accounting Solutions For Modern Businesses
Author: Business Tax & Money House

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: