Predicting accurately the future trends of pay day loans is quite an uphill task given the current global economic situation we are facing. Also, they are just a new financial product in the market that has gained popularity recently hence not a lot about it can be said. Nevertheless, predictions can be made based on the current financial trends and social economic climate. Payday loans are sought by many since it is viewed as a secure, fast and accessible source of emergency money without many requirements pegged on the recipient.
Given the global economic situation, traditional sources of loans are not easily available to the majority of people. The situation is worsened by poor credit history most have courtesy of the financial crisis. These people, looking for financial salvation, are major beneficiaries of payday loans. Cash advances through payday loans is only source of financial hope as only payday loans providers approve loans to individuals with bad credit history. Their sole requirement is that one has to be employed and loan is capped depending the recipients payment capability. From this background it is clear that payday loans popularity is dependent on the current economic crisis. The big question is what does the future hold for payday loans?
Despite their popularity there are lot complaints from payday loans clients, if indeed you have a complaint they can be made about any website, lender or broker, at this website http://financial-ombudsman.org.uk/. The biggest issue is that the payday loan repayment module is filled with hidden charges. Data from a recent survey carried on people on pay day loans showed that a quarter of those surveyed were hit by hidden charges, and a third expressed great regrets for taking up the loan as it had resulted in more financial problems. Also the surcharge on late payment was too high given the current economic situation. During the survey it was found out that most payday loans providers and companies did not clearly indicate their charges a sign that they have bad intentions. Their credibility was also put to question given that they do not carry out credit checks for new clients. Furthermore, some lenders failed to give accurate information and advice to loan borrowers on their current credit situation. These pleas have forced financial regulators to look deeply into these loans as they may be fleecing the public. There are also campaigns by consumer protection bodies to educate consumers on their rights in regards to pay day loans.
Given the current trend and public outcry of payday loans it is almost certain that the future is bleak for them. This is because as the economy shapes up few people would want to subscribe to their services. A matter of fact is that payday loans are only a choice of last resort once the traditional lending systems reject them. Also cash advances usually thrive as a financial instrument only when bank loans are not available. Based on the scenario above payday loan providers will lose a big chunk of their customers once the economy recovers and traditional lending avenues are more accessible. Nevertheless, their popularity may increase even after the economy recovers as most people have lost faith in banks.
Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk