1. Why payday loans remain in demand
Payday loans only serve to be the bridge between an immediate need until
consumers are able to access their next salaries to return the loan back to payday
lenders. The term usually given to borrowers is fourteen days and until that time
comes, the borrowers won’t have to worry about other charges if the chosen
company is licensed and well regulated. Although the assistance provided by
these companies are well known, there are some cases of complaints against
companies that harasses borrowers who failed to return the loan at the given
time.
Such isolated cases are then fuelled by individuals from banks and traditional
lending institutions who then tried pulling down the reputation of payday loans
by applying the concept of annual percentage rate to a loan that only covers four
weeks at the most. Anyone with the experience of signing overdraft checks
provided by the bank to pay for small bills or to address any household
emergencies will know the difference of convenience if that same person also
managed a payday loan sometime in his or her life.
Compared to banks, payday loans cater to low-income employees who have
trouble making ends meet. A worker earning minimum wage will only be asked to
provide the most recent payment stubs and possibly, a bank statement as well.
He will not be asked to wait for a long period of time before a decision to be
approved has come down. Contrary to what others might think who have no
experience in payday loans, these types of lenders are not loan sharks. The
lending business is subject to the strict laws of the government, must adhere to
the Office of Fair Trading Guidelines, and is therefore, is obligated to disclose any
interest and fees needed to be paid back along with the money owed to the
company.
In retrospect, consumers in dire need without gaining more information about
payday loans and those who rush ahead without properly checking the reputation
of the payday loan company they chose often get themselves victimized by fraud.
Payday loans should only be a last result if there are no other options for
consumers to obtain what they need. In order to be safe from scams, they should

2. conduct their own research on certain payday loans available by checking with
government agencies that provides licensing to such business. If the company in
check is registered and licensed, then the company is safe to get money from.
Payday loans offer the flexibility that most banks don’t to regular consumers.
Although they do tend to have higher rates and if the deadline for payment was
missed, they will then be allowed to extend the term for payment. It may be a
good option but it must only be a last resort. Consumers must first think it
through and if they do have the capacity to pay back the amount combined with
the interest with no problems at all then that would be the time to actually try
this service.