You may have definitely come across the term payday loans or cash advances either on T.V commercials, the print media press and even more frequently on the internet, not forgetting that everyone is talking about this so probably you might have heard your friends talk about this too. The above being true implies that you know what payday loans are and therefore no need to get into the details of what it is.
Before looking at the future of cash loans on Saturdays, it is best if we have a quick glimpse of where the structure of payday loans stand at present in terms of the economic environment surrounding the cash advance industry. Over the last decade or so, short term cash loans have become very popular and widely used in the UK and stretching even further to foreign countries.
Due to the high demand of this nature of loans (that requires no security attachments except that you should have a job with regular income and earn over £1000 per month), this has led to the institution of many payday loans lending companies. There has also been very stiff competition amongst lenders leading to different techniques being employed just to lure borrowers into taking these loans. There are very many dependants of payday loans and these are especially people who have bad credit score. Most of these customers are stuck in the cycle of taking the advance cash loans and this implies that currently there is a rich market for these loans.
Legally, some have in the past tried to control Payday loans whereas others have it declared illegal and all this is done with consumer protection in mind. It is however clear that the business is deemed lucrative by lenders and their unscrupulous nature aimed at making a lot from the desperation of the US citizens causes them not to follow the US usury laws. For instance, if a person is caught up in the cycle of borrowing advance cash loans, they will end up paying over 500% interest since the lending fees come in packages of ranging from £15 to £25 per £100 borrowed. This is done in a tangled manner where the lenders brand part of their interest on advance cash loans as “service fees”.
The future of payday loans as of now is meant to continue booming since the senate seems to have left out payday loans in the new financial regulations. This is going to favour the growth of these third party lenders since they do not have laws that will set ceilings for them. More growth is to be facilitated by the increasing technological advancement. With the new and ever improving tech, lenders have now established websites from which they now operate at great cut costs as compared to opening physical branches as way of reaching out to more people. This is however a weapon for use when need arises and people should not lean on advance cash loans for luxurious needs, otherwise if misused, the can lead to poor credit scores which means that you lose our credit-worthiness. Remember that creditworthiness is an ultimate determinant of your overall fiscal well being.
Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk