Are Payday Loans Good For You? by:Krishna Lal
Millions of people make use of payday loans every year
, and their number is increasing. Yet the payday loan industry is also the favorite whipping boy of several organizations. The allegations against the industry are well known: that they charge a high interest rate, and push low-income people further into debt.There have been arguments for and against this position. Yet the fact is the industry has continued to grow, and more people access their services every year. What is more, some banks have also extended credit lines to payday loan lenders in order to get a finger into the growing pie. The irony is that the banks refuse to lend to people the payday loan industry serve, yet want a portion of the profits. This is a convenient way of making profits without being held accountable for not providing services to the needy.
Most people who access payday loans do so because the banks refuse to lend to them because of their bad credit scores. Or because they do not have a credit history -- which is due to no fault of their own -- as in the case of individuals just out of college. Add to that, the payday loan lenders have made it quite easy to get payday cash advances.
The online cash advance Websites have made the process so easy and fast, it is better than visiting the local pawn shop or borrowing from your friends when you are in need of emergency cash. Recent technical advances such as the Internet have now obviated even the need to fax documents as proof of loan information when you apply for a payday loan online.
Payday loans are short-term loans that are given regardless of an individual's credit score. Despite all the saber rattling against the industry, we cannot overlook the fact that these loans are a great help to cash-strapped individuals. They can help stabilize your finances following an unforeseen cash emergency. Also, if you manage your finances well, there is no need to fear cash advance loans.
The cash advance loans add to your debt burden only when you are bad with managing your finances. If you fail to repay your payday advance on time, the debt will spiral upward. And you will find it hard to bring it under control.
For this reason, no one should be encouraged to look at payday advances as an everyday financial resource. They should be availed only in cases of urgent cash needs. The payday loan lenders encourage this by limiting the amount loaned to a first-time lender to $500. If he repays on time, he can get higher amounts when he applies for subsequent payday loans.
And payday loans are going to stay. But because they are a great financial tool. But because the payday loan industry has been a leading contributor to US elections. Their contributions have climbed year after year. No one likes to kill a goose that gives golden eggs. Least of all the politicians.
About the author
Krishna Lal runs the Website http://www.fastcreditinfo.com that gives information on all your credit needs. Learn more about instant cash advances at http://www.fastcreditinfo.com. Real Estate And Marketing; Part 1 by:Lanard Perry Use Your Good Credit to Consolidate Debt & Save Money by:Jennifer Tarzian Top 10 Reasons Home Based Businesses Fail! by:Bart Saxey Finding And Keeping Good People by:Paul Phillips I'm A Credit Card Deadbeat: You Can Be One Too! by:Stephanie Andrews Your Offline Banker does not Want You to Know the Differences between Online and Offline Banking by:David Jones Real Estate Post Card Marketing; Million Dollar Mailings by:Lanard Perry Presentation Design - Why Is "Well Done" So Rare? by:J. Douglas Jefferys Secured Loans With Low Interest and Easy Repayment Are The Best Option For Borrowers by:Steve Clark Credit Repair Myths Exposed by:Jim Eastman Consolidate And Live Debt Free by:Christopher Luck First Impressions by:Robert Nixon The Project Management Mindset by:Ryan Leibowitz