| The number of people using payday loans has greatly | | | | them between each paycheck. This puts them in a |
| increased in the last year. Despite this, the payday loan | | | | state of being dependent on a loan company that |
| industry has come under attack from a variety of | | | | doesn't have their best interests in mind. The large |
| different organizations. They have been criticized for | | | | interest rates they charge guarantee they will get |
| charging high interest rates and putting people who are | | | | more money back than they loan out to you. |
| often already low income further into debt. In this article | | | | Payday Loans = Plague? |
| I will discuss payday loans, and why it is best to avoid | | | | My advice for payday loans is to avoid them unless |
| them unless you absolutely have to use them. | | | | you have a large emergency and no money is |
| No Credit History? | | | | available. If you save a large amount of your income |
| Many people who use payday loans are unable to get | | | | every month, you should never have to use a payday |
| cash advances from traditional banks. This is often | | | | loan. These loans can put you into a cycle of debt |
| due to their credit history. Banks will typically reject | | | | which is hard to break free from. As soon as you pay |
| people who either have no credit or bad credit. This | | | | back one loan, you will probably have to borrow |
| has left open a large market for payday loan | | | | another one. Some companies even ask for collateral, |
| companies to make money from. Many services are | | | | such as your car. If you default on your payments, |
| now offered online, making it easier than ever for | | | | your car could be taken from you. This is something |
| people to borrow money. The irony of this is that | | | | you should want to avoid at all costs. |
| many banks are now giving credit to payday loan | | | | The Payday Loan Market Continues To Grow |
| companies in order to tap into the market. | | | | The payday loan industry will continue to grow larger, |
| Paying More For Your Credit From Your Bank | | | | especially due to the popularity of the internet. Many of |
| This allows the banks to make money off the payday | | | | these companies are only allowing new customers to |
| loan industry without having to directly provide loans to | | | | borrow $500 until they can demonstrate a good |
| the customers it normally rejects. This fact alone | | | | payment history. While some would say that this is a |
| should make anyone who uses payday loans angry. | | | | good thing, I think that this will entice more people to |
| With the rise of the internet many people don't even | | | | jump on board and begin borrowing money. It is |
| have to fax information to be approved anymore. It is | | | | important to understand that the payday loan |
| not necessary to show a credit history when applying | | | | companies win, not you. You are not going to get |
| for a payday loan, and this is why the industry has | | | | ahead financially by using their services. |
| become so large. Many people argue that payday | | | | Planning For Your Future |
| loans are good for people that need cash for | | | | If you are looking to become wealthy, you can do so |
| emergencies. | | | | by avoiding debt and saving money. You can invest |
| You Must Save, Save and Save Some More | | | | for your retirement or purchase things that will |
| My answer to that is people should save money for | | | | appreciate in value. You should want to earn interest |
| emergencies. If you save money consistently, you | | | | on your money instead of paying interest on money |
| should rarely have to use a payday loan. These loans | | | | you borrowed from someone else. This is what |
| are easy to get but come with a lot of strings. Many | | | | separates wealthy people from the poor. They earn |
| people become dependent on them, and begin using | | | | interest while the poor pay it. |