Payday Loans: Remedy or Tragedy?

Posted on Thursday, March 11th, 2010 at 12:45 pm in Miscellaneous Cash Loan Info

To be or not to be?  Well, that’s the famous question that we usually ask when it comes to decision making.  When things are no longer within our control; when things just seem to go out of place, we are faced with the dilemma of making a quick decision.  When money is the issue, payday loans seem to be the fastest solution but again, the question of to be or not to be always comes into play.

Actually, payday loans or sometimes called cash advance can be seen in different perspectives.  If you are the one who is not in need, you may look at it as a form of “tragedy” because of the higher interest rate as compared to normal lending processes and institutions.  Well, it is undeniable that due to the quick cash that the loan offers, you have to pay around $15-$25 for every $100 that you borrow.  Expensive?  Yes it is but for a person who is really in the verge of nothingness, who wouldn’t grab this offer?

Now if you will look at payday loan in the point of view of the people who are in a difficult situation, this may be a remedy.  Let’s put it this way.  If your son was hospitalized (God forbids) and you have zero balance in your bank account plus zero available credit in your credit card, how are you supposed to deal with it?  Will you wait for forever before you get your son get the medication that he needs?  You can say “then I’ll just go to my bank again and plead for some more cash loans” but how sure are you that it will be approved?  Do you know how long will it take before it will be approved and do you have an idea on the documents that you have to prepare before you can even get the money?  You wouldn’t want your son’s life to be in danger, do you?

With payday loans, you only need to fill out some information, present a proof of employment and that you are more than 18 years old.  You will also need to have a checking account in order for you get quick cash from the lender.  Meanwhile, if you have a bad credit report, you don’t have to bother because a good rating is not actually a must. Another feature of the growing trend of payday loans is the online transaction.  Instead of you going directly to the lender, you can save yourself from shame because you can already do it via internet.  Your cash advance can be credited to your account in just 24 hours if you get approved.  With that, the cash loan for your son’s hospitalization can easily be accessed.

Now, it’s for you to decide whether or not payday loans can be your biggest help and remedy or it can be your worst tragedy.  Weigh it well!

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