The pretty ugly truth about payday loans

paydayloanshopAlthough some conveniences are truly lifesavers, many come with a hefty price tag. Loans of any kind usually require solid credit and a good income. However, payday loans offer the average Joe with poor credit and perhaps a spotty work history a seemingly golden opportunity. The easy, breezy cash loan, with little or no credit requirements and the ability to use your job as credit worthiness, can appear to be hope for the masses. The ease and low requirements of the cash advances make these loans appealing to many. For example, here is a familiar scenario; your car breaks down and funds are low. You just paid rent, as well as the electric and gas bill and oh yeah, T-Mobile needs their cut too. With all your money tied up in bills, you wonder where you will find the funds to get Betsy, your old Honda Civic to run again. The outlook is bleak until one day while looking through the paper you see an ad for a payday loan. You read the details and getting the loan seems easy enough, in fact almost too easy. You decide to give it a try. Presto, the money is in your account just 48 hours later, and wow, you did everything online. Life couldn’t be sweeter. You collect your $400 and take old Betsy to the doctor. Then lo and behold, two weeks later an auto debit of $150 plus the original $400 loan is drafted from your bank account. You gasp at how expensive this seemingly wonderful convenience was.

payday loans

Pay Day loans offer a quick fix for small money crunches and can come in handy during periods of money shortages between paychecks. They usually don’t require a credit check of any kind, and instead allow the borrower to use his or her job as credit. Another positive is that the these small, short term loans often offer the option to pay the interest only and extend the payments out if the lump sum can’t be paid by the next pay day.

 

State laws govern how these loans can operate. Some loan companies will not operate in certain states due to the laws that regulate Payday loans. Although it’s not all that hard to get a short-term loan, you pay for the convenience of these types of loans in the form of much higher interest rates. You might end up paying back the original loan amount plus and additional 400% for some of these loans.

 

These loans are generally small amounts of money, usually $500 or less. The requirements typically have a condition requiring the borrower to give the lender pre- authorized access to his/her bank account, or to write a post dated check for the amount due in advance.

 

Convenience and easy qualifying are positive aspects of the Payday but you must keep in mind that the interest rates are generally much higher than conventional loans. In plain language, a $200 loan could end up costing you $600 or more due to the ridiculously high interest rates.

Are personal loans just for the working class?

The term installment loan is a common term in Australia and it is a lucrative business in the whole of the United Kingdom. This term refers to a particular loan that is being granted to individuals who are working class people. Personal loans will help them meet some financial strains that they may be going through for a particular period of time.

This normally happens when these people are in need of money at one particular time and they don’t have it. This situation is common to anyone who is working especially those who are not financial stable. Sometimes you may encounter an emergency in terms of meeting some of your financial obligations and you are at a loss at what to do.

When you have obligations

Secure MoneyPersonal loans from the Lots a Lolly website are granted to a particular group of people mostly those that are working class and in addition to that, there are some conditions that those people who are willing to take a personal loan must meet in order to be given the loan. These loans are granted by personal finance companies whose main business is to provide financial support to this part of society.

There are many places where one can find these companies that are offering this kind of small loans. Through the Internet, there are so many companies that are offering these services. You can search through search engines like Google or Yahoo where you will be able to find these companies. You can then visit their websites and fill out an online application.

Limitations with these loans

  • The one big factor is that one has to be a UK resident in order to be able to apply for these loans and also that you must have a UK bank account.
  • The amount of money that you are earning will also come into the equation. There is a standard limit of the amount of money that you are required to be earning for you to meet.
  • The loans are instant; it means they should be paid within a very small period of time usually a few months.
  • If you qualify for this type of unsecured loan and you decide to apply, you could get the loan on the same day that you apply.