Payday Loans: A Cycle of Dependence
Cash loans offer an easy way to obtain quick cash. Typically needed for emergencies including disconnection of utilities, completion of car repairs, or for rent, mortgage, or credit-card payments, customers complete an application on-line, over the phone or in person, with cash deposited the next business day into their checking or saving’s account, if the loan is approved. Approval of the loan status quickly occurs, once the applicant’s information is verified. Typically needed as a short-term solution to financial need, cash loan assistance requires customer agreement to repay the balance of the loan and added finance charge in full. Repayment is usually expected at the customer’s next pay period, although individuals may have the option to pay only the finance charge, extending the date due to the following pay period for remainder of the loan balance. Persons with poor credit ratings may also qualify, and amount of loaned cash assistance is based on factors such as employment verification and ability to repay the loan. While cash loans offer a short-term solution to those financially struggling, this cash loan option encourages dependence through a cycle of repeated use, rather than by learning improved methods of budgeting and managing finances to better meet individual need.
