Once upon a time, if you had a few cash flow issues, you could head down to your local bank, speak with the manager about the issues you were having, and they could work something out for you.

Nowadays, the bank manager often has no real power, and it is easier for the banks to pretend like you don’t exist, than lend you a helping hand, that is unless you are asking for something upwards of $5,000.

On average, for a bank to issue a one-year loan of about $3,000, it can cost them around $400, and so it is easy to see why they would pretend you are a phantom when you come asking for a few hundred dollars to make it through the week.

Because of this, it is easy to see why short term loans like pawning are taking off.

With the emergence of the fast small payday loan as a major player in the money lending world, there has been a lot of concern about the ways that these types of companies operate, whether they have the best interest of the borrowers at heart of it they are just trying to take advantage of people in an already bad situation.

This argument is a fair criticism, especially of the pawn loan industry. Customers in financial need put their possessions up as collateral for the loan, they get them back after they have paid the loan (if they can pay it off), the fees and the interest which can be very difficult for some in a worrying financial position.

Don’t put your possessions at risk and consider applying for a small cash payday loan instead – if used responsibly, such loans can be a convenient and fast way of getting extra cash until next pay check arrives without having to risk your assets.

Here in New Zealand, any financial provider has to be registered and is therefore bound under the Credit Contracts and Consumer Finance Act that helps to protect borrowers from unsavoury lenders. The Act stops lenders from having any hidden fees or rates; everything you have to pay has to be spelled out in plain English on your loan contract. The Act also stops companies from charging oppressive fees or interest rates and gives the borrower an opt-out period of a few days after they have signed the contract.

Borrowing money from these institutions in New Zealand can be a very safe process, and as long as you read everything in the contract and are happy with what it says, then you should be able to get a loan that suits your needs. You can apply for a payday loan here.