Ok like they said in Dragnet (that may before your time, hit TV show in the 60’s).
Payday lenders are getting very rich off people that are in desperate times. The truth of the matter is companies make the most money off people that have few options and little money.
Look at the car industry large and small car lots will give people with poor or even out right horrible credit a car loan. Even people that have just got out of bankruptcy can get a car loan.
How do they do it?
Simple the car lot carries the loan – in the industry it’s know as “carrying the paper”
Now since the car lot is taking the risk – you betcha you’re going to pay for it. So that’s why these car loans can have interest rates of 25% or more.
Some simple math – an SUV that is already 5 years old can still sell for $10,000 – using an in house loan from the car dealer with say 28% interest – and over 4 years – this car will cost over $14,000 and when you pay it off your car will be 9 years old.
And the car lot made a killing off you in interest not to mention possible ongoing car repairs.
The same thing is happening in the payday loan industry.
People who have no other option for cash are getting screwed. The lender does not want you to pay the loan off in two weeks or they make no money.
Big deal if they can make a one time $50 or $00 bucks off a small loan – they want you to keep paying that interest over and over again – that’s how they make their money.
And they know their customers will end up doing that – see scary stats below.
So like they said “Just the fact mam”
– Over 12 million people in the US get a payday loan.
– Most borrowers are white females between 25 – 44 years old
– Among borrowers 20% have a second job just to meet ends meat
– 58% of payday borrowers are consistently dealing with a shortfall of cash
– On average payday borrower will be in payday loan debt 5 months out of the year
– 4 out of 5 loan borrowers will use 3 or more loans per year
– More than 60% of all payday loans go to people using 12 or more loans per year (wow!)
– 76% of payday loans are renewals
– In a Pews pool 37% of the borrowers said they would take a payday loan on any type of terms
– Only 14% of people that use payday loans can afford to pay then back using their current monthly budget
With so many people in need of financial solutions, the payday loan industry is going no where. Until the government puts down some real legislation – it’s going to be the wild west and the borrowers are the ones that will loose in every gun fight.
If you are the one of 12 million people that just needed some money to get out of a financial ditch and now find yourself caught in the payday loan trap – we are here to help.
Give us a call at 1-877-280-5100 and let us go to work for you. You can also use our free online quote forum. One we get your request one of our payday loan experts will get in touch with you.
You can also find a video where I explain exactly how our payday loan debt consolidation program work by clicking here.
We looking forward to helping you get payday loan free.