London, UK -- (SBWIRE) -- 03/19/2013 -- Worldwide economic downturn has led to a rapid surge in the number of people in need of loans. In many cases, loan seekers are suffering from an immediate dire need of a relatively small amount of cash; therefore, when faced with an emergency, they turn to a payday loan from the first source they find available. The end result of such a situation is often unfortunate. In order to prevent those in need of a loan from encountering future disaster, Nifty Loans has launched an effort to educate the public on choosing loans with more suitable long term results.
Martin Grainger of Nifty Loans explained, "First of all, when in need of an emergency loan, many people panic and seek funding from the first company they find. The public should be aware that selecting one of the largest firms may not necessarily lead them to the best terms when it comes time to repay the loan. The larger, more high profile lenders often charge the highest interest rates of all their competitors; in fact, the industry leader in payday loans charges an almost inconceivable 4,214 percent on its short term loans. There are competitors out there that are willing to provide capital to those in need for much less additional cost. Customers must research a number of available lenders in order to find the lowest possible interest rates. The search may take a little longer, but it will create much less financial strain when repaying it."
Grainger continued, "Taking out a payday loan is often a very fast and easy process. There is no credit check, and the process is so streamlined that customers can usually get an approval in minutes. Then the money is deposited directly into their bank account. This is why these loans have become so popular among those in need, but payday loan providers often neglect to make it clear to borrowers what the consequences are for missing the repayment deadline. Late fees for payday loans are often exorbitant, especially because it is standard within the payday lending community to roll over a loan that has not been repaid on time. This ends up doubling the amount owed and compounding the interest; moreover, it has only been recently that payday lenders have instituted a cap on the number of times a payday loan may be rolled over. Because of this fact, many borrowers have racked up massive, inescapable levels of debt in just a few short months. When this happens, the borrower finds himself in worse financial shape than before the loan was taken out."
Grainger went on to say, "By staying calm in the face of adversity and researching numerous lenders, rather than only the high profile ones, borrowers can cut their initial interest rates considerably. As long as they repay the loan on time, they can avoid accruing exponential added costs. Finally, by keeping the number of payday loans taken out at an absolute minimum, borrowers can keep their financial history clean and escape having difficulty acquiring future mortgage and vehicle loans. Potential customers are welcome to visit our website, www.niftyloans.co.uk, for more information."
About Nifty Loans
Nifty Loans offers safe, secure payday loans with no hidden fees. They pride themselves in helping those in need of a payday loan to keep down interest rates and late fees by providing education regarding these loans.