Banks are pointing the finger at everyone else around them
In Business First of Columbus there was an article titled “Credit Counselors Steer Clients Clear of Payday Loans“
The article says: “The nonprofit research group Policy Matters Ohio is putting its support behind efforts to keep new restrictions on payday loans lenders in place, citing the loans they issue create a cycle of debt for their clients.”
I feel compelled to comment as financial institutions are pointing the finger at everyone else around them in regards to the financial crisis our country is currently enduring. Others are using the crisis to advance their own agenda as evidenced in the quoted article above.
Payday loans did not cause the financial crisis.
Payday loans are not responsible for the cyclical debt that we are seeing across America. This is solely the negligence and irresponsibility of the banks. You don’t have to look any further than the 700 billion dollar bailout to see the truth in this.
Payday loans can save you money.
In contrast to the quoted article, most individuals borrow payday loans to help avoid the cycle of debt from occurring. For example, a late mortgage payment can cost a homeowner easily $60 to $100 dollars or more in penalty fees. By borrowing a $100 payday loan to meet the mortgage payment and avoid the penalty fee you could save yourself $45 to $85.
Payday loans provide everyone a quick and efficient way to avoid the pile up of debt resulting from consumer credit card and bank loan penalties. As with any financial loan however, it is the borrowers responsibility to only borrow what they can afford to pay back. The responsible use of payday loans is strongly encouraged no matter what financial institution you are borrowing from.
To think that anyone would blame the current economies’ woes in any way on payday loans is ridiculous. The two issues are barely related. Why isn’t legislation being passed to regulate predatory lending in the mortgage field? Or the same with credit card companies? Those two industries are far more to blame than the payday loan industry. How many people wind up with 4 or more credit cards, and the card companies keep giving them more, instead of some responsibility on the part of the credit industry? You can’t get approved by a payday loan company to get in nearly the amount of trouble mortgage and card lenders will allow you to get into.
I feel like the government is clueless as to where to begin the healing process, as the further destruction of our economy continues. Because of their uncertainties, they base their focus on petty matters in hopes to drive the attention of people and distract them from the “real problems” we are facing today. Payday advance loans are without a doubt easier to obtain and manage for consumers who are in need of immediate short-term help and are unable to rely on the banking system.