Payday Loans are loans that you get with a very high interest rate at a very short period and with almost no paperwork at all, except for documents to show that you are a salaried employee. It is the best option during the time of an emergency, when you don’t have any other option in hand. These are called payday loans because during the time of application of the loan you need to pay back the lender when your pay check comes in, either in person or by bank transfer and if you are unable to do that then the lender will cash in the post-dated cheque with the basic and interest amount that you given the lender during the time of borrowing.
ADVANTAGES OF PAYDAY LOANS
Payday Loans are the easiest to apply for as you don’t require a credit score for this unlike bank loans which will check your credit score. That is why the demography of Payday Loans are generally the rural population or people from the lower income group who don’t have any savings and require emergency money for treatment or when they break their car.
Payday loans are also sometimes processed on the same day or maximum require an entire day to get processed and require just your salary pay slip to determine if you could pay back the loan on the next pay day loan or not. Unlike banks these don’t go through huge steps and can be completed very fast when you are in dire need of money.
If you are having problems paying your pay day loan back then you can approach a payday loan consolidation officer for a payday loan relief which will help you to clear all your pending loans while negotiating for a smaller interest rest and help you to achieve the financial consolidation.