Easy payday loans online with no credit check have been brought to the market as a convenient way to receive extra cash for personal emergencies. Today, there are more than 23,000 companies that issue payday funds in the United States. This is more than the number of KFC’s restaurants operating across the country.
Do no credit check loans guaranteed approval, emergency help from direct lenders really have such a big market demand? Yes, they are. Believe it or not, private funders like Instant Сash Advance focus on the most vulnerable categories of population. These are people without an academic degree, unemployed, African Americans, and individuals getting below $40,000 a year. But the major candidates for payday funds are young people below 21.
Private funders often take the benefit from your people’s closeness to technology usage. Instead of going to the land-based office, they will find all the necessary information on the Internet. More than 35% of young Americans claim easy payday loans online with no credit check. Only 15% of them read through the terms and conditions thoroughly. The rest of young people make everything fast without falling for details.
By 2021, about 6% of American adults have taken out payday funds. Most borrowers are 18 – 24 years old. With the fast-growing cost of living, quick borrowings with limited paperwork and fast application can be an enticing instrument to address personal financial needs. According to the CNBC survey from 2018, approximately 40% of 18 – 21 year old people and more than 51% of Millennials have considered taking out payday funds at least once in their life.
Does it worth your attention?
Payday funds – Is it a bad deal?
Individuals who are vulnerable to payday funders like Instantcashtime.com are often remain refused by the bank or have no bank account at all. This is why they try to build credit under the less attractive terms and conditions. For example, they accept high interest rates and different charges for misuse. High interest rates make borrowers unable to cover debts on time. Thus, borrowers fall into a trap.
The worst thing is that payday funding services usually focus on low-income or unemployed social categories. These are people who take out 10 or more loans per year.
Extra costs are the major explanation of why people refer to same day loans easy approval with no credit check. For Millennials and Generation Z, all expenses include student repayments and average daily costs. Only 16% of borrowers took out a payday loan for unplanned things. Fees coming with payday funds alone are estimated at $4 billion, while payday funding services cost around $7 billion for 12 million borrowers in the United States per year.
Solution for young people facing a debt crisis
Young people are suffering from financial hardships more than any other social category. By 2020, the number of households with student loan debt was doubled up. One-third of young adults have a student loan, which is their major source of financial support. According to the recent Northwestern Mutual study, Millennials have an average of $28,000 in debt. The situation with COVID-19 made the situation even worse as the financial need of most people became even bigger.
Americans who obtain an academic degree often end up with a student debt to be covered within one, two, or more years. The statistical indicators are even worse for young African Americans who often take out easy payday loans online with no credit check from private funding companies and then claim to be unable to pay their expenses for three months.
Payday funders encouraged by President’s administration
Even when young people fall victim to unreliable payday funders, the federal government doesn’t seem to take active measures to change the situation. Biden’s administration suggested to terminate the policy protecting borrowers from easy payday loans online with no credit check and with the interest rate of higher than 400%. The fate of the policy will most likely be decided by the end of 2021. If the decision is in the favor of the payday funding companies, it will be one of the worst “achievements” of President’s administration.
Bottom line
Young people have to deal with serious financial difficulties compared with previous generations. They often have to cover their essential and additional needs. Despite a well-developed system of university grants, not all students can get financial support throughout academic years.
Payday loans look attractive for young adults. They are easily manageable and perfectly suitable for surviving between paychecks. Without proper control, borrowed funds may turn into a disaster. Hopefully, the reduction of payday funders’ impact on politicians will make borrowers more protected by law.
