Sunday, May 12, 2013

Why Borrowers are Patronizing Payday Loans


Lending is one of the businesses that prosper today since it involves money. The fact that different financial institutions earn big from the interest rates imposed to the borrowers make online payday lenders grow their business even more. And now that shopping can be done not only in the supermarket but also through the internet, fast cash becomes more of a want than a need.

With this mentality that we have, no wonder that the majority are stressed emotionally and financially owing to the mounting charges and interests that they have to pay when using their credit cards for online shopping. Once an employee is left with no other recourse in meeting their financial needs, they would come to online payday lenders for help. Payday loans offer employees a source of fast cash but usually with a high interest rate that could range between 38%-1000% annually. But despite this high rate of interest charges, payday craze remains to be high among employees.

Why Quick Payday Loan Has Become a Craze?

It is a human nature of wanting everything to happen in an instant. That is what we have instant noodles, instant canned goods and of course instant cash when we need it in the form of a payday loan. This loan system involves the quick processing of a loan application that is usually granted within a day or less. To be able to avail of this, the main requirement in the borrower is merely an employment. The moment you need a money, online payday lenders are generous to grant you a loan with very few requirements in exchange for a high interest rate that goes with your loaned amount.
Payday loan has become a craze for many mainly because of its enticing feature of being able to get hold of quick cash when you need money. Notwithstanding the high interest rate, the fact that your loan application is approved so quickly is more enticing and it overcomes the risks of paying a higher interest rate that could even be bigger than the principal loaned amount in some cases.

Understanding the Payday Loan Craze

In an attempt to understand about the payday craze the psychological point of view about the payday loan craze is considered. Online payday lenders offer people the opportunity to provide an instant gratification in wanting or needing fast cash. The unconscious side of the brain has the id that seeks instant gratification with the impulses of desiring instant pleasure. It is this impulse that perhaps caused people to patronize payday loans as it can provide them an instant satisfaction of obtaining quick cash to meet their financial needs.

Online Counseling Agency As a Tool in Saying No To Your Instinct

Saying no to your instinct can be hard sometimes, but with the help of support system such as online counseling agency which is usually non- profitable group, you can still develop a habit of delaying your instinctive gratification, especially when it comes to availing quick cash. They will provide you with educational materials that would help you develop an effective budgeting plan. Aside from these educational materials, they also conduct seminars that tackle about proper management of monetary fund and how to spend it wisely.


Other articles you may find interesting:
·         Effective Ways to Manage Money
·         Creating a Personal Budget

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