Helps Consumers Choose Between Informal Borrowing and Payday Loans

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When strapped for cash, it is very important that consumers make the right choice between getting a payday loan and borrowing money from a friend or a relative, asserts, a leading information portal about short-term cash solutions. While borrowing money is never a pleasant experience, it is important that consumers are acquainted with the risks and benefits associated with those two particular alternatives.

A new commentary by, an information portal for short-term financing, operated by Green Spiral Media, compares payday loans with informal borrowing so as to help consumers choose between these two options when in urgent need of cash. Since both options have their advantages and disadvantages, it is important that consumers have enough information so as to make the right choice with regards to their personal circumstances. points out that the choice between a payday loan and informal borrowing is present when the person has a paying job, which is the main condition for getting a payday loan in the first place. If that, however, is not the case, borrowing money from family or friends may be the only available solution.

The commentary explores in detail the potential benefits of informal borrowing such as the lack of interest and the more flexible conditions for paying the loan back. notes that when getting a payday loan, it is important for consumers to pay the loan back on time, as stipulated in the payday loan agreement. This is not the case with informal borrowing where a friend or a relative may have no objections to extending the deadline as much as needed.

The article then goes on to look into the risks associated with informal borrowing. While being a more flexible way for consumers to solve their cash problems, informal borrowing puts a strain on people’s relationships. The other main drawback associated with borrowing money from family or friends is that a person needs to admit to having money problems, which may be embarrassing and is also likely to lead to unpleasant questions on behalf of the lender. Payday loans on the other hand offer the advantage of confidentiality and in addition, the payday loan provider will not enquire about the purpose and application of the payday loan.
In its article, advises consumers, when choosing between a payday loan and informal borrowing, to think about the effect of the loan both on their finances and on their relationships.

To read the full article, or to get more information about short-term cash solutions, go to

About Green Spiral Media
Green Spiral Media is a company operating several leading websites with information about payday loans. The websites in question work with a few trusted payday loan providers with the purpose of offering convenient cash loans to consumers who need them. In addition, the Green Spiral Media company works to keep its customers on track with the latest trends, news and developments in the field of short-term cash financing.

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Jamie Warsh
Green Spiral Media
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