Financial emergencies are not good places to be:
The irony about the financial emergency is that it comes suddenly and unannounced and it comes when you are least expecting it and sure enough it can catch you utterly unprepared!At least, when you can predict an uncertain event you are more in a mental situation to be able to cope with it. But the problem lies when the emergency is so herculean that it means it is increasingly getting difficult to even able to afford to keep a small amount of money safe to be able to comfortably glide through to the end of the month till the next payday before you will be rich again.
But for now, the bad news is that you are broke and totally broke!
Now, you don’t want to go asking anyone at all you know for little help noir do you want to compromise yourself respect at work asking your employer or your colleagues for a small amount from your impending paycheck. You rather stay away from it.
The good news:
The good news however that is there is still something that you can count on to bail you out of your difficult financial position.
The payday loans:
Have you heard about payday loans? Chances are that you must have. Statistics say that people more often hear about payday loans from friends, family and colleagues who have used such loans and have positive feedback about their experiences. The good word is spread only when there is a positive buzz around the product and the service. If you still haven’t heard about it, then log on to the internet and read all the things that people have to say about it. You will be surprised that you never thought that something like this does exist to save your skin especially when you are in an emergency situation and all you need is a small help for you to tide over but you are too shy to ask anyone!
What is a payday loan?
A payday loan is a short term loan typically one that lasts from a period of one month to a maximum of three months. The amount of loan that is seeked and sanctioned is for a small sum of money usually starting at one hundred and fifty pounds and capping for most lenders at two thousand pounds.
The real aim of the payday loan:
We all find ourselves in a position when we are comfortably gliding through our pay package when suddenly we realize in the middle of the third week that the money in your account may just not be enough to help you pass the last few days of the month. The payday loans come to your rescue at such times.The payday loan is typically due on the impending payday from the date of the borrowing of the payday loan. However, the loan can be foreclosed at any time even before the date of due arrives.
The benefits of the payday loans:
Small amounts of cash readily available for borrowing:
The payday lender will be ready to give you hard cash and this is extremely useful when you are in an emergency and you may not have the time to en-cash the negotiable instruments at all.
No fee; no hidden costs:
There is no fee for applying for a payday loan and there is no hidden cost whatsoever.
No long drawn process for application:
A lot of people prefer to borrow a payday loan because it has no cumbersome procedure to be followed at the time of the application. Even online application of loans is accepted and it is by far the easiest way to borrow even without moving an inch from your place!
The borrower needs not furnish any security collateral:
The payday loan is a short term loan that is unsecured. What this means is that the borrower does not need to furnish any physical security or collateral against which he will borrow the loan amount. The lender and the borrower have a fiduciary relationship where the lender lends to the borrower in good faith.
The interest on the payday loan is compoundable: the rate of interest on a payday loan is marginally higher than the loans that are otherwise available in the market. But the fact that the lender does not collect any collateral from the borrower except his employer’s details and bank account, it is deemed statutorily necessary that the lender increases his interest rate commensuratingly with the amount of risk that he is taking. On default of the loan, the interest is compounded and added to the principal amount.