A study in 2016 that was carried out over a period of five years, of Pew Charitable Trusts, found that 12 million Americans were able to take out payday loans each year, and the who took out loans together paid $9 billion each year for loan fees, available at ipass.net`s website.

Benefits of Payday Loans

Acceleration

Payday loans are quick, and lenders usually approve loans on the same day or even the next day.

Easy to use

It is usually easy to get payday loans so you have an income source that is steady as well as a bank account that is in good standing, and a valid ID. It is possible to get approval to get a loan on the internet. While some people argue that payday loans are inherently unjust but there are laws to safeguard the rights of borrowers.

Accessibility

Depending on the circumstances, payday loans could be one of the few options for emergency cash for those who have poor credit.

Pros and Cons of Payday Loans

High-cost

 Payday loans can be accompanied by annual rates of up to 400 and the financing costs could amount to 15%-30 percent that the borrower is. These rates are even more noticeable when compared to the 16.17 percent national average of interest rates for credit cards and the 4.25 percent average interest rate for 30-year loans in late February 2022.

Cycle of Debt

 Because of the charges and interest that a payday loan incurs, it can quickly require the borrower to repay the majority of the next paycheck, thereby creating the possibility for those who take out a loan to be entangled in the cycle of repeated loans.

Harassment 

Payday lenders have an image of exploiting the financially vulnerable borrowers and employing aggressive and threatening collection methods.