In today’s world where everyone is moving at a frenetic pace, it becomes quite difficult for some people to keep track of their finances. This can lead to complicated and ugly situations and to tide over their fiscal woes, they turn to borrowing. While some have the wisdom to make the right choices, a lot of individuals make the wrong decisions, especially when they are under pressure. Turning to pikavipit seems the easiest solution as many of these types of loans are available online and they advance you the money required in a matter of minutes. Their application process is very simple and the funds are transferred directly to the borrower’s bank account.
Why Quick Loans?
There are various factors that turn people to borrowing. Extravagant lifestyles or bad investments, or emergencies and unforeseeable events of many kinds makes people to choose this option as it is faster than traditional sources like banks. Also, many a time the borrowers may have already tried and failed to obtain loans banks and other financial institutions. Quick loans offer the easy way out of troubles as they provide the money almost instantly. Given the fact that these loans, being of small value inherently don’t require a collateral security also attracts those people who don’t qualify for loans from banks.
Since these loans are given at short notice and without any security and for very short loan periods, the interest rates are higher than banks. At the time of taking these loans, most people don’t realize the impact of the higher interest rate. It is a very important thing to know exactly how the loan works and what are the terms and conditions. Making hasty ill informed decisions can only lead to further problems. Sometimes, the amount of money paid in interests totals to more than the initial loan amount if not repaid in the stipulated time. Anyone who takes these types of quick and short term loans must ensure that they are repaid within that time and not extended over a long period. The longer the loan period, the more acute is the borrower’s problem.
These types of loans have received severe criticism for various reasons. The critics say that lenders often trap people from low income groups and exploit them financially. The lenders on the other hand argue that if it were not for these short term loans, these borrowers would have no other option. Another reason for disapproving these loans is the methods employed by lenders to recover the debts. Lenders are known to have used intimidation and force on borrowers.
Many laws have been established and enforced to protect the borrowers from unnecessary harassment, but the lenders have invariably found ways to circumvent these laws.
Should these loans be taken?
While not prudent, sometimes emergencies do arise which may force a persons hand. However, du caution must be observed and the loans should be repaid within the time period. Many people will take a second one in order to repay the first loan. This situation should be avoided as it can turn into a vicious cycle that could financially cripple a person. Also, all other options like banking loans and overdraft facilities, credit cards, etc., should be tried before choosing this option. Also, many lenders lure people into taking more loans than they actually require. So, anyone taking a short term loan should only borrow what is required, that is the bare minimum. Also, this route should only be taken to cater for emergencies or necessities and not for investing in stock markets or to lead and support expensive and avoidable lifestyles.
Financial decisions have long term impacts and an unwise judgment could lead to severe complications and problems.