The payday cash loan industry has come under increased scrutiny over the last few years and many states have outlawed the practice or capped the interest rates that payday lenders are allowed to charge consumers. These states claim that lenders take advantage of desperate lower class citizens in financial trouble. I would argue that the payday loan lenders are filling a need in the market and providing consumers fast cash when nobody else will.
The payday loan industry was created to solve short term cash flow problems of both consumers and businesses. Life is unpredictable and unexpected events arise in all our lives calling for a desperate need for quick cash. Some might put these expenses on a credit card and pay it down along with interest over time. For many others this is not an option as they have already maxed out their credit line and simply cannot afford to pay out of pocket. This is where the payday loan industry fills the gap in the market and extends credit to consumers in desperate need of fast cash.
Payday cash loans have become even more prevalent when the credit crunch arose forcing banks and credit card companies to retract credit from consumers. The credit card companies and banks have also significantly increased their fees to make up for lost profits. This makes getting a payday loan even more attractive as the fees for not making a payment on time or bouncing a check are usually more expensive than the interest that incurred on your short term payday loan.
Consumers should be wise and understand that payday loans do carry a steep interest rate with them and should not be used as a common practice. We as consumers don’t have the luxury of being financially irresponsible and just printing off more money like our federal government can. You will be expected to pay back the borrowed amount with interest on your next payday. Most payday lenders will give you an extended payback period if needed.
While payday cash loans are a last resort for fast cash they are a very popular service among consumers. The online payday lenders are especially popular among consumers as they can expedite the application process and get you fast cash within 24 hours. Online payday lenders are also for the most part able to provide a better interest rate on your short term loan due to the competition that the online market has created.
If you are in need of a payday cash loan for fast cash I recommend that you use an online vendor who deals with multiple payday lenders instead of just one. This is advantageous to consumers as you only fill out one online application form and the website will compare 2-3 payday lending companies and send you the one able to provide the best rate. There are a few of these websites that I’ve tried throughout the years and I have found the one below to be the easiest to work with.
Matthew Couch is a graduate student of The Ohio State University Fisher College of Business where he majored in finance. His areas of specialization include e-commerce, financial markets, and the payday loan industry. His goal of the majority of these articles is to educate consumers on the payday loan industry. Hopefully my years of experience in the financial industry will help consumers make wise financial decisions. For a payday cash advance loan lender that I used a few times during my collegiate career check out this link: