Why payday loans are good for people

Payday loans are short-term loans meant to address an immediate need. These are also called cash advance loans, payday advance or salary advance loans. In some countries, payday loans have a negative reputation, there really is a lot of misunderstanding that led to this. For instance, APR or the interest rate used to calculate these types of loans are often looked at from the wrong perspective. The interest is annualize when it is only meant to be for short-term use. An example often cited when trying to explain this is how the hotel industry works. If a hotel offers rooms at $100 per night, saying that it is expensive at $350,000 per year is unfair.

Adding to this negative connotation about payday loans is that fact that some countries lack regulations and controls to govern the payday loan industry. This is not the case in Canada. Here, payday loans are governed by provincial regulations that balance the rights of consumers with the high-risk that payday loan companies take in lending.

These reasons are enough to justify the existence of the payday loan industry. But much more than that, the payday loan industry continues to exist because there is a need for this type of service. Some say that getting a payday loan is like borrowing against your future earnings. While there is truth behind that, we need to look at how credit cards work. It works in exactly the same way – spending money that you do not necessarily have in your pocket. Whether you’re buying a new pair of shoes or eating dinner at a restaurant and using your credit card to pay for it, you are purchasing something with money that is not out-of-pocket and will have to be paid for at a future date (preferably within the next billing statement). For people who do not have a credit card but have immediate wants and needs that cannot be covered ­­with the cash they hold in their pockets, payday loans are the answer.

Payday loans are also a reliable choice for people who have emergencies that may not have savings or access to any other funds. Whether it’s a need for immediate home repair or car problem that has to be addressed ASAP, payday loans can help in those situations.

Payday loans are not for everyone. There are people who need them and there are service providers that offer an honest transaction to help them when they need it. GoDay is one such company. We offer fast and easy online payday loan transactions. The process is secure and the fees disclosure is upfront.