According to US censor data, approximately half of the American population live in poverty – or is part of a low-income household. This means most families are struggling to meet their financial needs, let alone put food on the table. It comes as no surprise why many families have to resort to borrowing funds to make ends meet. As a result, there’s an increase in the number of pay day loans application online.
Guaranteed loans application online can be a solution for low-income families to access that much needed financial resources. Not only can they meet their financial obligations, but they’re saved from penalties associated with late payments. This is because payday loans are payable with the next pay check. Also, these types of loans are processed quickly; you’ll have the money in no time. While payday loans offer an immediate solution to a financial setback, there are drawbacks associated with them such as:
- They’re much more expensive than other loans; interest payable is very high
- It encourages bad financial habits
- Can lead to extreme debt
Payday loans are very easy to obtain—not to mention fast and convenient. Many low-income families depend on these loans to survive. They simply need to guard against falling into a viscous cycle of constant borrowing.