Payday loans have continued to exist amidst a lot of criticism and despite all the arguments against it people are still advocating for it and a lot of the population are still using it because of the only reason that they benefit from it. To be honest, not everyone has excellent credit history and a stable job in this current economy. Some are living paycheck to paycheck and in such a situation even a small emergency can seem like a huge one if you do not have the proper finances to take care of it. Money becomes the primary concern in these cases and people take it when it is readily available. Payday loans do have high interest rates and people who take out these loans are completely aware of the fact. However, just so that you are better armed, here are few of the reasons why you may take out payday loans than resorting to other means.
1. No fuss no embarrassment loans
The fact that same day loans are no fuss immediate loans is the biggest attraction. Some of you may not be comfortable letting your friends or family know that your finances are going down the drain because that may feel humiliating. When you take out a payday loan, nobody wants to know about your financial condition or does not have unsolicited advice for you which can be comforting at times. You know you will pull it together soon and all you need right now is a little money to get you going through the emergency, that’s all. Besides, the family and friends that you ask for help might not have the kind of money to give you and banks do not lend such small amounts. Moreover, a loan from the bank means a lot of paperwork and security which, seriously speaking, you do not have at the moment. So, a payday loan seems like a good idea if you are serious about putting your finances together soon.
2. Payday loans are lower than the other losses you might have to bear
In case you are taking out the same day loan to pay for another debt that you might have, it is wise to compare the cost of repaying the payday loan and the cost of fines and other accumulated fees on your previous loan. Check to see if you will lose your car if you failed to make the payment. If yes, then perhaps it is wiser to take out a small loan than losing your car over it. However, be very sure that you can pay back the cash loan when it is time.
3. Keeping it impersonal
There is nothing personal in taking out payday loans. You borrow money, pay it back along with the interest, within the stipulated time and it’s done. However, if you borrow money from your family or friends, you may not have to pay an interest on the money you borrow but in case you fail to pay the money when you had promised, it may cause your relationship to get strained with that person. Moreover, not everyone is comfortable lending money and that can become a stressor too. When it comes to cash loans, it is purely business and there are no emotions involved.
4. Bad credits
The good thing about payday loan is that you can still borrow the money in time of your emergency even if you have bad credit. This makes the application process quite short which is exactly what you need when you are facing a financial crisis. So, if you are able to repay the loan on time, it won’t even reflect on your credit history. So, no one needs to find out you took out a small time loan because you had insufficient funds once.