The number of people using payday loans has greatly increased in the last year. Despite this, the payday loan industry has come under attack from a variety of different organizations. They have been criticized for charging high interest rates and putting people who are often already low income further into debt. In this article I will discuss payday loans, and why it is best to avoid them unless you absolutely have to use them.
No Credit History?
Many people who use payday loans are unable to get cash advances from traditional banks. This is often due to their credit history. Banks will typically reject people who either have no credit or bad credit. This has left open a large market for payday loan companies to make money from. Many services are now offered online, making it easier than ever for people to borrow money. The irony of this is that many banks are now giving credit to payday loan companies in order to tap into the market.
Paying More For Your Credit From Your Bank
This allows the banks to make money off the payday loan industry without having to directly provide loans to the customers it normally rejects. This fact alone should make anyone who uses payday loans angry. With the rise of the internet many people don’t even have to fax information to be approved anymore. It is not necessary to show a credit history when applying for a payday loan, and this is why the industry has become so large. Many people argue that payday loans are good for people that need cash for emergencies.
You Must Save, Save and Save Some More
My answer to that is people should save money for emergencies. If you save money consistently, you should rarely have to use a payday loan. These loans are easy to get but come with a lot of strings. Many people become dependent on them, and begin using them between each paycheck. This puts them in a state of being dependent on a loan company that doesn’t have their best interests in mind. The large interest rates they charge guarantee they will get more money back than they loan out to you.
Payday Loans = Plague?
My advice for payday loans is to avoid them unless you have a large emergency and no money is available. If you save a large amount of your income every month, you should never have to use a payday loan. These loans can put you into a cycle of debt which is hard to break free from. As soon as you pay back one loan, you will probably have to borrow another one. Some companies even ask for collateral, such as your car. If you default on your payments, your car could be taken from you. This is something you should want to avoid at all costs.
The Payday Loan Market Continues To Grow
The payday loan industry will continue to grow larger, especially due to the popularity of the internet. Many of these companies are only allowing new customers to borrow $500 until they can demonstrate a good payment history. While some would say that this is a good thing, I think that this will entice more people to jump on board and begin borrowing money. It is important to understand that the payday loan companies win, not you. You are not going to get ahead financially by using their services.
Planning For Your Future
If you are looking to become wealthy, you can do so by avoiding debt and saving money. You can invest for your retirement or purchase things that will appreciate in value. You should want to earn interest on your money instead of paying interest on money you borrowed from someone else. This is what separates wealthy people from the poor. They earn interest while the poor pay it.
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PAYDAY LOANS STINK! The political climate is changing and their end is near. Their store fronts are becoming more and more dangerous places to work. Their disgruntled clients are getting smarter, banding together and learning how to fight back. Payday Loan companies offered some valuable service to the community, but for too long, we’ve been playing by the unfair rules written by these powerful companies. PAYDAYLOANSSTINK.COM welcomes them to exist, but its time that the playing field is leveled. Payday Loan companies have proliferated through intimidation and misinformation for too long. PAYDAYLOANSSTINK.COM exists to give you – the consumer & the employee – the information you need to gain the upperhand. To escape their devious cycle-of-debt trap! PAYDAYLOANSSTINK.COM invites every one affected – including employees of the industry – to join in the discussion and learn from each other.
- JUST STOP PAYING! Always remember to put a Stop Payment on your check. It forces them to stop charging interest and negotiate a payment on your terms. Not theirs!
- Did you know that by sending them a simple Cease And Desist letter by certified mail, you can get all of their harassing phone calls – to you, your work and your family – to stop?
- And did you know that many Payday Loan store fronts are blatantly breaking laws every day? That a simple letter to your City Council or your Attorney General could help to shut them down? Or even get some of your money refunded?
- THE “EPP” EXTENDED PAYMENT PLAN – Available at nearly 70% of the nation’s Payday Loan stores, but yet you are never told about the EPP – “Right now your Payday Loan store is offering a three-month, interest-free payment plan for anyone who has a current loan! Save hundreds of dollars in interest. That’s right! Whether it’s Advance America, Check Into Cash, Quik Cash, Check N Go or some other Payday Cash Advance company, just tell them you are tired of paying interest and would like your FREE EPP. The Extended Payment Plan. Ask for it today before it’s gone!”
PAYDAYLOANSTINK.COM thanks you for taking the time to read this quick comment. Our new site has much more detailed information available regarding the topics above. As well as – “Small Claims”, “BBB & FTC Complaints”, “Arbitration Agreements”, Community Forums & more!