Payday loans , or loans available almost immediately are enjoying growing popularity. Non-bank loans are the main source of financing for liabilities up to USD 1,000. The non-banking market is constantly developing, which makes the offers more attractive. There are many reasons that contribute to greater interest in payday loans by people. Check why people are willing to reach for payday loans.
Reasons for the increase in popularity of payday loans
Consumer lifestyle is becoming more and more popular. The availability of all goods and services is tempting. The fact that earnings are rising does not mean that people stop borrowing. We earn better, so we want to afford more. Statistics show that four years ago the debt of people to loan companies was USD 589 million. Recent data indicates that it is already USD1.49 billion 1. This almost threefold increase is not surprising. Non-bank loans have been negatively ceased to be associated only. Increased legal restrictions resulting from the provisions of the amended Anti-usury Act have suppressed the unfair practices of loan companies. The Register of Loan Institutions was established. All this affected the transparency of the market.
There are several important factors that have also contributed to the increase in popularity of payday loans.
Payday loans are advertised as loans available to everyone. In fact, their availability is greater than loans. This is due to, among others, lower customer requirements. A person applying for a short-term loan in a non-bank company does not have a present certificate of earnings, and only declares the amount of achieved monthly income. Lenders operate mainly on the internet, so you can borrow money online. It is true that the bank is also increasingly able to receive a loan via the Internet, but it is a service for regular customers, achieving adequate income, which regularly affects the bank account. The network will find a lot of loan companies that can be analyzed without leaving a comfortable armchair.Various tools are available in the form of comparison websites, rankings, which makes choosing a suitable offer child’s play.
In the face of growing competition, loan companies are seeking customers by offering increasingly interesting solutions, such as payday pay for free. When taking a payday loan, you do not need to declare the purpose of spending the funds. A new customer can count on a loan for free. On the other hand, the one who has already borrowed may apply for a larger loan the second time.
We borrow, spend, pay back and we can forget about the loan. The short repayment period has many disadvantages, but the timely settlement of the liability allows you to take another loan or simply improve your creditworthiness. You do not need to watch the payment of monthly installments. Payday loans simply become a convenient form of borrowing money. All you have to do is indicate interesting loan parameters, repayment period and amount, then provide basic data to wait for your decision and transfer after a while.