Payday Loan Industry

There are many payday loan services a person can go to for a loan. These lenders normally offer loans from $100 to $1500. The amount a Payday Lender’s loan will vary based on state laws and their own lending requirements. Most first time pay day loan borrower should only expect loan amount to be in the $100 to $300 range. You may be asking yourself, “Why are they saying they will loan $1500 when I may only get $300?” the answers to these questions are one ; most payday lenders not do check credits. The assumption here is, the borrower has bad credit or a payday loan is unsecured. So, there is a higher risk to the lender for this type of loan.

But on the other hand the battle between state lawmakers and the payday loan industry continues to heat up. I have mixed emotions regarding this battle. While at the height of my payday loan borrowing, I was paying over $1000 per month in interest. This massive debt load was strangling my financial foothold. But I am a firm believer in personal responsibility. I got myself in too deep with payday loans and I had to work a second job to pay these loans off. People need to understand what they are agreeing to before they secure a payday loan. They must have a payoff plan before they get the loan and work toward removing the cause that forced them to get this high interest financing. While I agree some forms of legislation is needed to curtail the greed of some payday loan lenders, it is insane to only allowing lenders to charge 17% APR. This will only drive the Payday Loan industry into the ground. Leaving those who need payday loans left out in the cold with no lenders to turn to.  So does the Payday Loan Industry have a place in the financial market? I believe they do.