Where people in desperate, urgent need of cash suppose to go and find the money in a short time. They have probably tried their banks and credit card companies, already with no luck.
There is a need for providers of legal, fast cash loans. It is probably impossible, however, what would happen if payday loans were banned from operation? The grounds would be left for loan sharks to operate the way they want. Now, nobody would want that no matter how much they hate payday loans.
Payday loans may be expensive. Nevertheless, not getting cash advance has its costs as well and it may be prolonged cost. Missing a payment will lead to fines and credit score deductions. If someone keeps missing his payments, he will have to pay sizable late fees. And his credit score will deteriorate to a level that he will not be able to have any chance of getting a loan for a while. Considering the alternatives, the fees payday company charges for a loan may not be the real issue.
The real problem with them is that their payment term is far too short to solve any real problem rather than delaying cash shortness for couple of weeks. They may have their reasons for demanding the money from the first wage pay. After all, some of these companies promise not to carry out credit check on their applicants. That is a considerable risk on their part to take. Unfortunately, most of their clients are in serious cash problem and if the loan is taken back from their wages straight away, they can not meet their commitments again. Here is the bigger problem starts. They keep extending their loan and paying the charges over and over. So they can not really come up with the money, because any spare money that they might accumulate goes to pay the fees. What is the solution? What other alternatives are available to people in need of urgent cash to pay for an emergency or unexpected bills?
There are now few companies out there to bring the competition to payday loans. They are prepared to lend cash money for over 3 months. That is a long enough period for most people to solve their cash troubles.