The mushrooming of cash advance and payday loans sites and companies in the past few months have hinted to the fact that the demand for these types of instant loans are increasing. Companies are more into fine-tuning their services and giving their best to the borrowers so that they can get a bigger share of the business pie. The reason for the rise in demand of these types of loans is because the US economy is still under a financial crunch; the credit crisis still looms high. The inherent feature of payday loans and cash advance which makes it possible to get money even through a person may not have good credit is tempting enough.
In these times of recession, it has been experienced by many people that the salaries are not enough to cope up with the inflationary tendencies of the economy. The salary is drained in a matter of fourteen days on an average and it can be really tough to pull on for the next fifteen days. In such circumstances, if there is an exigency like job-loss, an immediate need to travel or to set up a small business or any other reason, it is not so easy to get access to money at a short-notice, specially for the middle-class people.
Mr. Paul Smith, a blue collared person who works for a glass-industry explains how he wanted to start a small business. Though he had some savings, he was still behind by a thousand dollars. He did not want to ask his relatives; who would obviously discourage him. The conventional lenders were not too keen to lend money because his credit rating was not good. Not discouraged by these obstacles, he applied for a payday loan. In 24 hours, he was granted the loan, which he was able to repay in a month. Paul says that his relatives wouldn’t have trusted him with the money and the credit companies were too snoopy, asking for credit status, which unfortunately, he didn’t have. He admits that if it was not for payday loan, he would have had a tough time starting his business. Now Paul’s business is prosperous and he has been happier than ever.
Like Paul, the concept of payday loan or a cash advance has been quite beneficial to thousands of people. They have been able to get financial assistance, with these organizations granting money until the borrowers can pay back with their next check, on an interest that is mutually agreeable to them and the company. Though some so-called purists would like to believe that going for payday loans is a bad idea because of the high interest involved, one should know that the interest is nothing compared to the one that you’d pay for a big, unsecured loan. Since the amount paid in a payday loan is also below $1500, the interest is also manageable. Looking at the way, how these loans are of a lot of importance in today’s financial environment, it is not surprising that the popularity of cash advances and payday loans are increasing day by day.