In life, you don’t have a choice but to expect the unexpected. With this, it should be a basic practice to have an emergency fund so that the emergency will not leave you financially crippled. It is the best way to prepare for future emergencies that will require additional money. They can be in the form of medical conditions, job loss, home or car repairs or something that you’ve never imagined to ever happen to you. You wouldn’t want to just rely on credit cards or loans which will leave you more problems. But what if you are just fresh from college and just started to work? It would be difficult to balance your bills and student loans and saving up for an emergency fund. What happens when these circumstances came knocking on your door in the middle of the night? You have one of the overused option-borrowing from friends or families. But this has never worked out for either lender or borrower. If it does, these are rare cases. So what are your other options? One emerging lending scheme is payday loans online such as Dosh Express. It is the same with the usual payday loans based on storefront offices but this one is just processed online. These loans usually constitute small amounts promised to be paid by the borrower in a short time. It has a more lax process than those of banks making it more enticing to borrowers.
Although the interest rate is somewhat higher than banks, the number of users is continually growing and made itself a topic of debate for financial analysts. Due to its importance to users these are some suggestions from the experts to better improve payday loans online especially for the consumers:
- There should be a limit to the number of loans approved or rolled over to 5 times in a year for a single household. If incase they are able to exceed that number, the lenders should be obliged to direct these borrowers for money advice because it is a sign of financial instability.
- There should be stricter checks to ensure borrower’s capacity to pay.
- There should be shared information of borrowers for the lenders to avoid multiple use of this service at the same time.
- Banks should find a way to be more accessible to customers in dire need of emergency funds.
- Credit unions and other social lending alternatives should be encouraged and develop so that there would be other alternatives.