People turn to payday loans as new credit card laws set in
New credit card laws
Payday loans are in higher demand now than ever before. During the economic downturn and the credit crunch, more people from more income brackets started turning to payday loans than ever before. Reuters reports that “Customers’ average income has increased to about $50,000 from $41,000, and a significant portion of customers have a median household income over $75,000.”
Furthermore, experts predict that once credit card issuers start feeling the crunch from the new credit card laws, fewer people will be approved for credit cards. Likely payday loans will be in even higher demand as people have fewer options for credit.
How payday loans work
Many people prefer using short-term credit to using credit cards simply because it saves them money in the long run. Payday loans generally only have terms of about two weeks or until you receive your next paycheck. You must pay back your payday loan plus lenders fees all at once. So, after your two-week loan is up, you’re done. There’s no compounded interest every month on charges that can sit there for years.
Payday loans can also save people money on overdraft fees. As banks begin to lose money because of the new credit card loans, they might turn to overdraft fees as a source of additional income. Bank overdraft fees are already extremely high; many charge $35 per transaction, regardless of the amount.
Payday loans can work for anyone
More people are discovering how fast, easy and convenient payday loans are every day. You can get the extra cash you need automatically deposited into your account in just a couple of hours. You can get small payday loans for just $100, or you can borrow up to $1,000.
Whatever your financial emergency is, payday loans can help you get out of hot water. Click “Apply Now” to fill out a short application.