Why Do People Use Payday Loans?

Payday loans are for small amounts for days or weeks, not months. It's a short term credit solution for smoothing out welfare and maintaining consumption - whether it's something unexpected, like a car repair or for some of life's luxuries like going out for dinner or even a weekend away.

But what is it that drives people to such a loan in the first place you? Many think payday loans are for desperate people on the brink of financial ruin. This is simply not the case. Our client research and experience don't support this sentiment.

Some expect that most of our clients have very poor credit records, but in reality, many have perfect credit records. They prefer to take a small loan and repay it a couple of weeks later rather than be tied down to a long-term loan for more money than they originally needed or wanted. By using a payday loan it's all over and done with after a few weeks. Stress-free. Convenient. Everybody's happy.

Traditional personal loans aren't available for very small amounts, and people end up with more credit than they need and paying it off for years. Many of our clients have said credit cards require too much discipline, get used too often and ultimately drag out for way too long, hanging over their head and growing all the time.

These other forms of finance are useful, but have a different purpose from payday loans. Most of our clients have indicated they would rather keep credit cards and traditional personal loans for bigger purchases. In both cases there's a bit of paperwork required up front with the products not oriented around convenience as much as Cash Doctors payday loans.

Cash Doctors also has quite a few clients who have a small credit history glitch and need a little bit of extra credit from time to time. Unfortunately the credit rating system in Australia can be excessive at times, penalising some excellent people for very minor defaults for too long.

With the rise of debt and the ease at which credit is acquired from 'the big bad banks and credit card companies' it is clear that there is a genuine need for an easily accessible payday loan industry to help smooth consumers' income and maintain their quality of life. Now this may seem as if we are just chasing the scraps from the other companies, but this is not the case. Cash Doctors has identified a need that encompasses a wide range of consumers.

Consumers of Cash Doctors' short-term loans appreciate the transparency and comfort that is provided to them when they apply. There are no catches and no gimmicks, just a simple economic equation that benefits both the client and the business. Because let's not dress it up with bells and whistles, we want to make a profit right? In order to do this in the best way possible, everything is laid out for our clients so they can see exactly what they are getting themselves into. What interest rate they will have to pay, and all fees are clearly illustrated right from the beginning of the loan process.

Cash Doctors allows clients to borrow (and therefore repay) using terms based on their own welfare and well-being. Payday loans help people who are looking for flexibility in their loans, small amounts and short terms, and this is exactly what Cash Doctors offers.