Emergency loan lenders lend money to almost everyone in dire need of financial assistance, and are popular because of this aspect. However, there is an allegation that suggests that there are set targets for these lenders, and they hold lending as a high profit, money minded business. Downfalls like never ending debts may be caused, trapping customers into a compulsory loan borrowing situation.

The lenders lend money specifically to the poor income group, who are already indebted to many sources, novice young individuals and the financially inexperienced. The poor are cornered because they do not have many money lending sources to resort to when they are in a financial crisis situation – which is frequent. Payday loans may be taken in order to pay off earlier debts, but this actually ends up creating and continuing a circle of debts. The financially inexperienced novices are lured into a similar trap, until they learn the risks and holes of the system. The plain truth is that this sector of people is the neediest of the monetary help and faces the most unexpected financial disasters. So lenders are said to lend money to these sections more predominantly, exploiting the borrower’s lack of knowledge of the economics of the loan. Many people fail to understand that emergency loans are moderately high on interest, so they can snowball into large and unmanageable debts if defaulted.