The Payday Loan Debt Trap

The truth about payday loan interest rates Nowadays, many people ask for the help of a payday loan company in order to solve their temporary financial troubles. As appealing as such companies tend to be at the beginning, you will soon realize that the truth is far from what you are initially make to believe about getting a payday loan. One of the main traps that are hidden behind the attractive appearance of payday loan companies refers to the interest rates, which are much higher than you would

institutions and the wave of irresponsible mortgage lending (The Economist). Subprime borrowers with poor credit histories and insufficient funds for repaying the loans were allowed to borrow money which they could not pay back, thus in turn initiating a nationwide housing market crash (The Economist). Many of these borrowers were granted these loans because of the poor judgement of banks and financial institutions, thus the government needed to create an institution which would protect consumers against

Payday loans are small amounts of money lent to borrowers for a short period of time with high interest rates and fees, not secured by any collateral. The amount of the loan is typically small, ranging from as little as $100, with some lenders lending up to $1000. The average loan is $375. The fee ranges from $10 to $30 for each $100 borrowed, according to the CFPB. While some describe the fee as an interest rate, it is typically a fee charged on the loan. Under federal law, lenders must calculate

Are Payday Loans Addictive? Are Payday Loans Addictive? Payday loans can be addictive because they 're readily available and easy to get, so people turn to them often when they need cash to tide them over during financial emergencies. Unfortunately, these loans were meant only for short-term, emergency cash needs and carry high interest rates to keep them available to everyone--even people with bad credit. These loans, which are meant to be repaid from the next paycheck, can trap people in cycles

Should Online Payday Lending Be More Closely Regulated? Should Online Payday Lending Be More Closely Regulated? Payday loans generate lots of controversy because they 're offered to people who have bad credit or limited credit histories, which makes them high-risk borrowers. Traditional lenders seldom approve loans for these types of borrowers and never quickly enough when a cash emergency occurs. Unfortunately, many of these same people don 't use payday loans as intended -- as short-term emergency

Payday Loans - Are They as Bad as Some Make Them Out to Be? Payday Loans - Are They as Bad as Some Make Them Out to Be? Payday loans fulfill real-world needs for families that can 't cover emergency expenses from their savings. Even people with stellar credit can 't always negotiate loans quickly enough when a financial emergency arises. The premise is simple: Short-term loans are available, even for people with low credit scores, and people can get money into their accounts faster than trying to

sometimes there are unforeseen financial circumstances. Paydays loans are a good option to consider. Keep these tips in mind when thinking about getting a payday loan. People should only use a payday loan as their last resort. Loans carry very high interest rates which actually have you paying close to 25 percent of the initial amount of the loan. Prior to securing a payday loan, investigate your options. A simple method to find reputable payday loan lenders to to look on websites that review them. You

Simple Ways to Repay a Payday Loan Fast 7 Simple Ways to Repay a Payday Loan Fast Paydays loans are often valuable resources for people from all socioeconomic groups. Anyone can get behind and need some emergency cash, and there are multiple installment loans, online personal loans, payday loans and other types of loans to help your family get the cash it needs. However, payday loans can cause people to get trapped in cycles of debt because of their higher interest rates. These loans aren’t meant for

hope. There is, however, an entire financial industry set up to help with such problems. A payday lender is probably nearby that will provide you a small, short term loan to help you get back on your feet. Payday loans come in many forms, but generally speaking, they are small ($375 on average), short term (one to two weeks), high interest (391% API average) loans. Advocates for payday loans argue that the loans are available for people who have emergencies like sudden medical expenses, and are available

A New Credit Bureau Is Born for Payday Loans A New Credit Bureau Is Born for Payday Loans The Consumer Financial Protection Bureau, according to Blog.credit.com, has defined the rough outline of a proposed new credit bureau for short-term and payday loan borrowers and lenders. This proposal has stunned many payday loan critics because the proposal could be viewed as acknowledging the industry instead of suppressing it, which has been the direction that the CFPB's previous efforts have taken. Federal