No longer demonised as they once were, people are often opting for payday loans online once more. Without the high APR rates and changes in legislation, the fear of taking out a loan no longer exists, and they can often do more good than bad in this day and age. But the question is, why have payday loans become so popular? We have the answers here.
The Benefits
The benefits of payday loans are clear. People apply for them because the process is digital, easy to follow and allow for access to quick cash. Most application take a mere 10 minutes, which is an extremely short amount of time, comparative to going to a physical lender and waiting for a meeting, waiting for approval, and not having all the correct documents to hand.
Speed
Most of the time, many payday loans lender will give you your money within just 24 hours, but people can even get their payday loan in just a few hours after it’s been approved. It’s no surprise that they have become so popular! The fast application, fast approval and fast access to cash means no waiting around, but there’s also no collateral needed to help you secure your loan. Approval can be given to anyone who applies, subject to credit checks and current affordability assessments.
No Long-Term Commitments
Another reason why payday loans become popular is that they don’t tie you down to a long-term contract. Short term or payday loans allow you to get a quick cash advance, meaning you shouldn’t be tied in for longer than 30 days. Fromm application to repayment, the process is quick and easy, and all debts will be settled within a month. Payday loans can also be a great option instead of a typical personal loan. If you want a personal loan, you’ll usually go to a bank to apply for one. When there, you get overwhelmed with inquiries about your personal and monetary details.
So, Why Have Payday Loans Become So Popular?
All in all, it is easy to see why popularity has risen in recent years. Things are becoming more and more expensive, so many people are experiencing financial difficulties. They’re a quick and easy solution to minor money problems. Sometimes, we have months where we spend more than we usually would. Then, you have to pay your bills before payday comes in. So, a payday loan helps you pay your bills, and is then paid back as soon as your money comes in. They have a bad name, but payday loans can be helpful when used responsibly.
Whatever your financial situation, always act responsibly when taking out any form of loan. These should not be used as a means of assisting with long term financial difficulties. If you are experiencing serious financial issues and need help, assistance, or advance, contact the money advice service, and always consider all of your options before applying for a loan. Make sure it’s right for you.
