Bread, dough, mullah. Money has many names because it’s important and it talks. But over the past couple of decades, money has begun to speak a bit differently. To many, money has started speaking an entirely new language called cash advance loans.
Known by many in the US and UK as payday loans, they are based on a very simple premise. You go to a cash advance loan company and request a short term loan. This used to be done by talking to an adviser; it’s now even easier with instant cash advances. This loan will usually be around $1,500 or less, and you’re expected to pay it back within a few months after being issued.
Cash Advance Loans Are Hassle-Free
Cash advance loans provide people with money upfront, no questions asked and without the bureaucracy they would experience if approaching banks or other financial institutions. Cash advance loan companies are near enough the polar opposite of banks. They only provide small lump sums, and they are non-discriminatory; they don’t care if you are the Queen of England or Jimmy from Tesco’s. All they want to know is how much you need, and when you can pay it back.
You Can Get an Advance Online
Their dramatic rise has been for some reasons. Access to the internet for young and old has primarily fueled this demand, with online cash advances now being the most popular way to get one. Simply fill out a form and voila, your loan will be with you the next day with almost no questions asked.
Short Term Credit
But what people don’t think about is why so many people are looking for a cash advance loan. For all the negativity that payday loan companies receive, they aren’t forcing their customers to sign up against their will. People flock to them, and their popularity is because now many people need the short term credit that a cash advance loan can provide.
Originally cash advance loans were sold to consumers as a fix for emergencies. The ability to get a cash injection straight into your bank account, to overcome a medical problem or an overdue bill was a godsend to many.
But this proved to be only one small aspect of why people may seek a cash advance loan. Behind every loan, there are very personal reasons, which are often magnified by problems within wider society.
Cash Advance Loans Offer Privacy
Firstly, it is incredibly embarrassing for people to ask for money. It is bizarre, but there is a taboo surrounding the discussion of money. It isn’t the ‘proper’ etiquette to talk about your financial situation in a group setting, and don’t even think about asking someone how much they earn. Money only talks if you’re making a lot of it. When you need to speak about it, you can’t, because of the social stigma. People choose to forgo asking their family and friends and instead seek the help of an anonymous company. They would rather put their financial health in the hands of a discreet lender, rather than have people know they are hard up for cash.
This absence of discussion is further enhanced by the reduced level of financial understanding across many parts of society.
Many people who get a cash advance loan have no knowledge of the interest repayments required. These people think APR sounds more like a football team than their payment terms. Added to this is the powerful effect of compound interest. The saying goes, that those who don’t know what compound interest is are forever doomed to pay it. What may initially seem like a get out of jail free card, can quickly spiral out of control, as a result of the repayments which can quickly mount up into thousands in unpaid fees and debt.
Loans for Bad Credit
This lack of financial acumen has led to the absence of a capital safety net for individuals and families. Back in the day, most people would have a ‘rainy day fund’. This would be money set aside to cover any issues such as your car breaking down, or an unexpected bill.
But today in our credit funded the world, this is not an option to many. Their outgoing expenditures are so high that they cannot afford to save any at the end of the month. It’s not so difficult to see those who may be in this situation; they often seem to lead the most luxurious lifestyles. They have a nice new car on finance or that brand new iPhone. They watch their credit-funded 4K TV from the comfort of their financed sofa. “At least the sofa is payment-free for the first year and I won’t have to find cash advance loans near me yet, right?”
It’s easy to see how someone in this situation would be forced to seek a cash advance loan.
The massive increase in cash advance loans says a lot more about society than it does about the individuals. If many are seeking them, then many must be put into similar situations.
Arguably this is the effect of the post-recession world we live in. In the nineties and early noughties, if you wanted money you went to a bank. Since the recession, the banks have shut up shop to those the need of most help. Now bank checks are more stringent. If there is any slight whiff of financial instability in your history, they will boot you out of the door. This doesn’t seem like it’s going to change anytime soon either.