Each year millions of Americans are taking out small loans at rates
that can reach four hundred percent a year or more. You may compare
these high rates to those of loan sharks, but in America, it is
absolutely legal. As a matter of fact, these loans are part of a
trend called payday lending or payday loans. Payday loan stores,
now a forty billion dollar industry, are among the fastest growing
financial services in America. Ten years ago they did not exist,
now there are more than twenty two thousand payday loan stores in
America. For those strapped for cash, a payday loan can be cheaper
than other alternatives, though the FDIC says a customer should
not continue a payday loans more than three months a year. This
means no more than six loans. If one makes more than six loans a
year, they might be directing their self to severe financial hardship
in the future. People take out an average of six to seven loans
a year. They are quick and easy to get. You don’t need credit.
Usually, all you need is a job and a checking account.
However, be aware, that it would be in one’s best interest
to use payday loan services as a temporary solution to financial
hardships. Using these services for long periods of time only means
you are gathering interest and falling deeper into financial hardship.
© 2006 Payday Loan Information.