At present time, economic crisis has turned down some of us, and in order to meet our financial obligations, we often turn to short-term loans. Due to the rapid increase of high inflation rates plus lower wages, most of the employees face difficult times in shouldering their expenses. The bottom line is, we turn to payday loans.
For instance, the check we issued will be due the next day, but we know that our checking account does not have sufficient funds. Then what do we think the best option to resolved this kind of conflict?
Perhaps, we may borrow from a friend;however, borrowing money from a friend and a family relative may cause various issues and problems. Besides, with the present status of our economic state, no one has really an extra cash. Remember what Shakespeare's have said, "Neither a borrower nor a lender be, for loan oft loses both itself and friend."
Thus, there is one option left to us, availing payday loans. This short-term loan can also help us in many financial emergencies.
But before anything else, let us consider determining legal payday lender from loan sharks.
Due to the high interest rates that some payday lenders have charged, they have been criticized as disguised loan sharks. But this is common thing among loan companies. As a matter of fact, loan sharks infinitely charge higher interest rates.
This is the very reason why payday lenders was put at a disadvantage. This now the time where we should know how to determine a legal payday lender from a loan shark.
For the information of everybody, a loan shark may be a group of people who offers illegal loans at very high interest rates and often supported by blackmails and violent threats. They are usually attached with loan companies which are less honorable and reputable.
On the other hand, legal payday lenders are not associated with black mails or threats because they are licensed and a member of respectable finance companies and associations.
In fact, the existence of payday loans have pushed loan sharks to turn to other pursuits. Payday loans are finance alternatives that are not exploitative.
Now, the best thing with payday loans is that, if a borrower cannot pay the loan amount on its due date, the lender offers the roll-over option to all of us who have availed the loan in case. Loan sharks, on the other hand, use threats and black mails.
Often times, the collector of loan sharks may even take away our appliances, just to make sure we will pay the interest. What worst is, if for in case the borrower is a woman, she may asked to sell her body instead just to equate the unpaid interest rate or even the loan amount itself. Once a loan shark has gotten hold of a victim, it does not let go easily.
With all its negatives, indeed legal payday lenders do not offer such agreements. Thus, we should really know how to distinguish legal payday lender from loan sharks or illegal lenders. This is for the benefit of all of us, for the safety and security of everybody.
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