Payday loans for the middle class
Sometimes, payday loans are necessary. When average citizens face the hardships that come along with a deep economic recession, something has to fill the gap if an unexpected expense comes along. Across the nation, an increasing number of middle-class families are embracing this reality, according to Indianapolis Star reporter Jeff Swiatek.
Banks aren’t serving public like no fax payday loans
Unfortunately, misinformed media members like Swiatek can’t see it. They claim that no fax payday loans lock borrowers in a cycle of debt, but it simply isn’t true. Swiatek and others like him bandy about this hollow talking point that sounds sensational but lacks factual support. While it is true that developing a savings cushion is the most ideal way to absorb financial shocks, that does not mean that payday loans equal a cycle of debt. There is no logical connection; the media can bleat the mantra into oblivion while monolithic big banks continue to betray the public trust.
APR and cash advance do not compute
Seriously, the hamfisted attempt at making the association must stop. Truth in Lending laws are antiquated and doddering in their requirement that cash advance stores must post those specific annual numbers. Payday loans are not annual loans. Take my word for it, please. This applies in Indiana or anywhere else, Mr. Swiatek.
Kathy Perron, the president of Momentive Consumer Credit Counseling Service in Indianapolis, considers online payday loans “a very costly way to do your banking.” Ms. Perron, let’s put all our cards on the table, shall we? Payday loans are likely more expensive than borrowing from friends and family. But do you want to hear something that’s truly expensive? Banks and their checking overdraft charges, that’s what.
Payday loans find a sophisticated audience
According to Advance America spokesman Jamie Fulmer, the company has “seen over time our customer profile inching toward a higher income.” Not only does that suggest that the current economic change in America is inescapable, but it could also mean that the clientele for payday loans has become increasingly solvent and educated. In fact, Advance America’s average customer comes from a $43,000 per year household, and half have attended college.
Indiana consumers speak out for payday loans
Swiatek does take a stab at sounding like a balanced reporter when he relates the story of Neil Fitzgerald. Mr. Fitzgerald, an Indianapolis tire shop supervisor, used a loan because he was short of cash to buy a used car after his truck blew a head gasket. Bills made things tough, but payday loans proved to be a bridge to financial stability.
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Well, with the banking and credit collapse we saw a few months ago, how can you blame people for going to payday loans? If you know that they aren’t going to raise their fees on you every couple of months, and the interest you pay (which really isn’t interest) will be lower than on a credit card, it sure seems like a more viable alternative.
You’re right on the mark with your section on APR. The only way to reach the much-hyped triple digit APR is to take out one advance and continue to renew the same advance every two weeks for an entire year. State laws and industry best practices do not all this to happen.
I’d go clean it up myself, but that might not work out too well. I can’t see us just leaving it all out there for eternity. Imagine what it will look like in 100 more years.