When a person encounters financial difficulty, he or she is likely to be slighted by traditional financial institutions like banks on the quest for assistance. Banks will ask embarrassing personal questions such as where your income comes from – they may even demand to speak to a loan seeker’s boss or make them obtain an affidavit from a manager verifying paycheck amounts.
Applicants will also have to exhaustively discuss private aspects of finances, including loans and lines of credit from other institutions, as well as issues such as outstanding child support or financial judgments. Even after divulging all of this personal information, a bank is still likely to deny the client a loan based on metrics or spotty financial history. Though there may be understandable personal issues such as medical emergencies or home repair needs that pop up, banks tend to only review the facts and figures on paper, leaving the personal situation of the applicant out of the equation.
The end result of this interrogation leaves applicants disillusioned and still without the fiscal lifeline they need. They may feel even more ashamed and helpless than they did prior to approaching a bank, and hesitant to seek other opportunities.
Payday loans are a unique solution to these short term financial woes, removing many of the stressful components found in traditional bank interviews and applications. The organizations that provide payday loans work by utilizing an online form instead of an intimidating personal interview, and taking a more holistic approach to determining the eligibility and worth of individual applicants to ensure a better chance of acceptance. Using the promise of an upcoming paycheck as collateral for an upfront loan, these short term loans provide much-needed financial relief for emergency situations and prevent utility late fees and higher credit card rates from piling up.