Payday loans are one of the new loans that have gained popularity since the financial difficulties that began in 2007 as a result. Pay day loans are a contentious subject today, in part because they prey on the most vulnerable members of our society in terms of finances.
Pay day loans have been an option for some who are suffering to ease the burden month to month if they have an expense that they cannot account for, or for those who want to buy an item that they would otherwise not be able to afford if it weren’t for the pay day loan itself. This is because everyone has struggled with finances and trying to generally just survive over the last few years.
However, since pay day loans can only be bought using a factor dependent on your monthly income, it is no surprise the average pay day loan is anywhere between £100-300. Since these loans generally need to be paid back within 5 months, there becomes a slight sticking point between what is reasonable for a customer and what is not.
One of the important aspects to not about a pay day loan is the effect that it could have on some customers. While it can be a massive help and way for some to finance themselves through difficult times, others have found themselves trapped into a cycle of taking pay day loans to keep themselves a float, which only makes the situation worse for themselves.
Unfortunately, there is not much that you can do to stop people from being trapped into paying a loan that they don’t want to. The best course of action with pay day loans is to not use them, because eventually it will feel like you need to keep applying for them, as you lose more and more money every repayment.
Maybe it is better to budget properly and live within your means, as these type of loans are very costly.
Why borrow when you can save for those impulsive purchases like a Hollywood vanity mirror! When you can feel like a real star!