What are reality of Instant Payday Loans

It is not questionable that there are two sides to a coin, but to prove that one side is better than the other is. The same applies to a credit capacity like an instant payday loan. There are advantages and disadvantages. Some find peace in an online payday loan, while others shun away from it. The pros and cons seem to be of equal weight so debates continue to draw supporters on each side. We shall attempt to discuss in detail every argument below.

What are the advantages of Instant payday loans?

The application form is easy to access and very simple.  Once you find the site of the instant payday loan lender on the Internet, the application can be accessed with a simple click of your mouse. You do not have to go to any office of the lender and get the hard copy. Online payday loan application forms are also very simple. The blanks need short and direct data to fill up. The questions are short and straightforward. They are not complicated.

The procedure is conducted immediately- within the day the loan application is submitted, if it is approved, the lender will deposit online the loan money to the bank account of the borrower. The borrower will be informed through the contact numbers provided on the application form.

No supporting documents and restrictions- instant payday loans require no documents to be faxed or submitted to the lender. The only obligation on the part of the borrower-applicant is to supply the accurate information requested on the application form.

Collateral is not needed – online payday loans do not require collateral. They are clean loans and they are paid out of the paycheck of the borrower. There are cases when other sources of income are considered as the source of paying the payday loan.

Good source of money to handle an emergency – because a loan can be obtained fast, the borrower is much relieved to meet an emergency as soon as possible. The main purpose of payday loans is to meet a financial emergency. It has been widely noted that payday loans have greatly helped victims of disaster-stricken areas in urgent financial difficulties.



What are the disadvantages?

It drains the money - those who don’t approve of instant payday loans contend that the money of low-income members of society is continuously being siphoned by these lenders. It is observed that many customers of payday loans are from the ranks of these communities.

Not helpers but exploiters- it is also claimed that payday loan lenders do not help their customers during their time of need but rather exploit their financial difficulties to gain. They cite a study conducted in 2008 where a leading firm dealing in payday loans earned a $676million profit out of extending $4.2 billion in payday loans.

Ignore legal restrictions- payday loan lenders are circumventing the law on usury by imposing interest charges that are allowed by law.

Violates advertising restrictions- in Canada, there were reported advertisements without disclosure of APR placed on 


Facebook is not allowed by law.

Supporters of both sides continue to argue and this is good for the enlightenment of the customers. It still depends upon them to decide if payday loans are worth patronizing or if it’s more advantageous to not avail them.

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