The general opinion amongst many is that the general public are not looking to borrow money as much as there were – but why?
1. Lack of available credit.
2. Too difficult to be approved.
3. Concerned about repayments due to worries about work.
These are the 3 main reasons given.
At Hour Payday LoansBlog we work with many internet companies that take applications from members of the public and try to offer them money – and we can tell you that the “thirst” or “appetite” for borrowing money is still there.
So, lets break down the reasons why feel they can not or do not want to borrow:
1. “Lack of available credit”
There is no point pretending that there is the availability of loans like there was pre-2008. That simply is not true. However, there are still lenders that have money that they WANT to lend to customers like you. Despite interest rates in the UK sitting at 0.5% (as of 19th July 2010) you still will not get a loan rate anywhere near that level – however there are some good deals still to be had. Payday Loans offer customers a great way of borrowing up to £1,000 until next pay day and although the APR is not attractive (APR is over a year… Payday Loans over a few days so they are not really comparable) they generally work out as £25-£30 interest for ever £100 borrowed. If you need quick cash then this is a small price to pay.
2. “Too difficult to be approved”
Again.. I will not pretend it is easy to be approved finance. However, it is not as difficult as many people are led to believe. Many people believe that their credit rating is worse than it is and they simply cannot get any unsecured, payday or secured loans.
Many websites offer simple application forms to get you quotes so it is worth shopping around to see what you can find.
3. “Concerned about repayments due to worries about work”
This concern is a good concern to have – as nobody wants to miss payments on the money they owe. It is important to know 2 things really. Number 1, a lender will not lend to you if they feel you cannot pay the loan back. Number 2, think carefully about your stability in work and the ability to continue repaying - you are the only person that can be the judge of that.
To answer the headline of this post… nobody ever WANTS to borrow money… nobody WANTS a loan. People WANT what a loan can give them whether that is a new car, home improvements, fixing a washing machine or reducing your monthly payments on other commitments.
You have some good points and another one to add on that might be that some are capping on APR for payday loans that reduces the borrowers credit options. Just some additional information you might want to add.
Well, I don’t think that people are into loans anymore.
I think all the recent financial troubles (and I don’t believe they are over yet) have made most people stop and think and become very cautious.
When people start being told that there is trouble, most thinking people start to barricade themselves in and look for protection. If interest rates are going to rise and rise sharply, then it is a really good idea to get rid of the debt.
Since getting a loan is a consignment, you have to be very careful with your decisions. Choose the right lender. There is more to picking a lender than just looking for one with the least interest. Keep in mind that those with low interest require longer period. Remember, when choosing a lender, check its stability, its flexibility, repayment schemes, and interest rates.
Well, one of the biggest disadvantages is when you miss payments, you will really face serious consequences. Just like facing foreclosure or repossession of the property. In addition, you could also face penalties and legal issues. It will also reflect in your credit rating, which can lead to a low credit scores.
I know people are worried about making the payments on there loans but if your going to get a loan what is it really for? Are you getting a loan to try to get the car of your dreams and barely make payments? I would think that the best reason to get a loan is to make more money with that loan. When it comes to getting loans to start a small business or any business you need to take that risk of not being able to make payments. But at least you have a better chance of making those payments.
Considering the above three factors now-a-days its very hard to get a loan. Even if you get the high interest rate welcomes and frightens you. Thats why people are become more cautious and are not interested in high rate loans. Hope they will come down soon.
We still have plenty of users that use our website online to apply for loans. How is the market for payday loans in United Kingdom ?.
It’s a growing market in the UK that is for sure.
People have just been scared off by all the horror stories of bailiffs etc. Eventually people will return to the ways of the credit boom and start spending more than they earn.
There are so many concerns about credit cards and barrowing money. I would say you have the 3 biggest concerns although I would also add the rate at which it is going to cost you on the loans.
All are reasons you defined is good But you forgot to mention one reason. More than 40% people getting this kinda loans because they want money in urgent. And banks and other org not able to give in short time.
Your site is very unique. Thanks for the information.
Wow! Thank you! I often wanted to write in my site a thing like in which. Can I take element of your post to my web log?
yes why not everybody now a days take the loan for complete his or her wishes….