Payday loans in birmingham alabama - Huntington
Payday loans are a form of high-cost short-term credit. They provide small amounts of credit, typically in the range of £50 to £500, with relatively high rates of interest of up to 1500% APR. They are unsecured loans, which means that they are not secured against an asset (like a house or a car), but are instead borrowed against future income. These loans are taken out over short periods, traditionally ‘until payday’ when they are repaid, although lenders are now offering longer term installment loans of up to 12 months.,For payday lenders, the shift to online borrowing also meant that they no longer needed to operate a network of high street shops or call centres to sell loans to customers and process applications, which helped to minimise costs.
Instead, investment was made in digital infrastructure, financial technology (‘fintech’), marketing and advertising.
A whole suite of digital, marketing and sales products and services has grown around the payday lending market to exploit this commercial opportunity and further challenge the centrality of the banks in financial services.,We know that many consumers now apply for high-cost short-term credit online through a digital interface. This led us to the payday loan website.
The interface has undergone a number of iterations over the years, partly in response to regulatory change, but also due to the increased application of user experience principles, analytics and user testing as a way to optimise online experiences for consumers.
There is design uniformity across different payday lending websites, contributing to a recognisable ‘look and feel’.
Perhaps the most iconic and integral element is the slider. Usually made up of two sliding bars, the slider offers the potential customer the opportunity to select the amount they wish to borrow and the term of the loan.
The slider works in real-time and presents the customer with a dynamic calculation as they move the bars. Next to the slider, there is the ‘Apply Now’ button. This starts the loan application process.,The accessibility and immediacy of credit is a significant part of how payday lenders market themselves.
Rather than the user having to select an amount from a drop-down box or entering a value using the keyboard, they engage with a single and smooth sliding motion. This is about making customers feel comfortable and ‘at ease’ as they engage with the application process. The use of colour, copywriting and imagery featured in their descriptions of how this was achieved. For example, photography of everyday scenes, like someone sitting down for a cup of tea in the kitchen or a person at work in an office, were used to make the act of applying for credit online appear familiar, relatable and easily attainable. This attempts to create feelings of acceptability, whereby the use of high-cost short-term credit is a normal and ‘okay’ thing to do.
It is particularly important to minimise any worries or concerns the consumer might have about using this type of credit, especially given the negative media attention the industry has received.,Many lenders will tell you that a typical customer takes out a loan in the event of the unexpected – an unplanned bill, a car repair, a new boiler.
Whilst this may be the case for some, it fails to give us an insight into the lived experience of payday lending and, more broadly, the embodied and increasingly digitised life of credit, debt and money – budgeting, online banking, online shopping, applying, managing, juggling, saving and repaying. People told us that they applied for a loan at home in the kitchen or while they were in bed at night, during their lunch break at work, whilst travelling on the bus, at a rugby game, in the pub on an evening, on holiday or whilst shopping in town.,Some people told us how important it was for them to manage their finances online using personal digital devices. For some, this was a matter of anonymity and privacy.
By dealing with lenders online, they did not have to apply in person or over the telephone and have to discuss their money matters with someone else. This helped people to deal with feelings of embarrassment about taking out a loan, for others, it meant they could avoid judgement. The use of personal devices was also significant.
Rather than having a paper trail of receipts or loan letters, much of the communication between borrowers and lenders was done via text message or email, all managed on mobile phones or tablets. For some, this was a discrete way of managing their day-to-day finances.
Their use of loans could be hidden from others. Keeping their use of high-cost short-term credit a secret from family and friends was bound up with feelings of embarrassment and guilt about their ability to manage their money, especially when using products deemed to be ‘sub-prime’ in nature.
However, sometimes the communication from lenders became intrusive and capable of inducing anxiety for the people we interviewed. In cases where a borrower’s ability to meet repayments became problematic, communication could become a constant reminder of the debt owed, punctuating everyday life.,For payday lenders, the shift to online borrowing also meant that they no longer needed to operate a network of high street shops or call centres to sell loans to customers and process applications, which helped to minimise costs. Instead, investment was made in digital infrastructure, financial technology (‘fintech’), marketing and advertising.
A whole suite of digital, marketing and sales products and services has grown around the payday lending market to exploit this commercial opportunity and further challenge the centrality of the banks in financial services.,What is it like to have a payday loan?
Many lenders will tell you that a typical customer takes out a loan in the event of the unexpected – an unplanned bill, a car repair, a new boiler. Whilst this may be the case for some, it fails to give us an insight into the lived experience of payday lending and, more broadly, the embodied and increasingly digitised life of credit, debt and money – budgeting, online banking, online shopping, applying, managing, juggling, saving and repaying.
People told us that they applied for a loan at home in the kitchen or while they were in bed at night, during their lunch break at work, whilst travelling on the bus, at a rugby game, in the pub on an evening, on holiday or whilst shopping in town. Digital access to credit can help many consumers deal with an immediate need tied to money, particularly in terms of providing reassurance or relief from concerns they had around money matters.
However, the speed of decision can also become tied up with feelings of guilt, shame, embarrassment and worry: I’ve used it, I mean, it’s terrible to say, I’ve used it after a few pints a couple of times […], been in, had a good time, and thought, “Money’s a bit short. I’ll just do it, and it means I can stay out a bit longer,” which is a dreadful thing to say, you know. […] It’s always been a regret though, because you wake up the next day, and you think, “Well, you could have just went home, really. […] It was after about five or six pints, and it was a case of, “Well, why not?” You know, because your mind-set changes, and you can be more impulsive if you’ve had a few beers. […] You’re sat out, you’re with friends, or even if you’re not with friends, you’re just enjoying sitting out and having a couple of drinks, relaxing, you think, “Yeah, it’ll be all right.
It’ll work itself out.” Some people told us how important it was for them to manage their finances online using personal digital devices.
For some, this was a matter of anonymity and privacy.
By dealing with lenders online, they did not have to apply in person or over the telephone and have to discuss their money matters with someone else.
payday loans tucson az
Комментарии
Отправить комментарий