Why the loan?
That is a good question that can have many answers, but the borrower will best be able to provide it. People go in for cash loans in every conceivable emergency. Medical crisis, inability to pay the utility bills, running low on credit facility, and a whole lot of equally terrifying, yet, unavoidable circumstances compel one to try the expensive way out of the predicament – payday loans. Much as, they dislike the idea of borrowing against their paychecks, individuals do find this system of borrowing an easy line of attack to tide over the sticky situation they have landed in.
What’s the hue and cry about?
It hardly needs an elaboration. Payday cash loans are short-term loans that are taken in critical situations, but are actually pretty bad way to handle finances. The chief reason is not difficult to perceive. With the down-turn in economy, most families literally live off each paycheck as it comes in. So, where is the scope for returning the borrowed cash with interest to blow a hole through the roof? The whole procedure to get your hands on the cash is simple. No credit check. No paper work. Just a few signatures, and there – you are in possession of the required funds (with a dismal undercurrent of what lies ahead).
Why the grim note?
Well, the lender is risking his neck too. With no documentation to slow the process, the lender has to hurriedly part with the cash loans with no questions asked. In an attempt to shield himself against what he is staking, he levies a heavy rate of interest. In other words, the lender and the borrower are both relinquishing their peaceful slumber over the deal. The borrower feels good to acquire the money at the juncture when most needed, and the lender can take his turn in rejoicing when he receives the booty over-and-above the capital lent out.