Easy money, lack of alternatives — perfect excuses for a payday loan
Kansas is witnessing a payday poplosion — these centers are popping up all over the place and the authorities seem to be having their hands full with them. And one of the most immediate consequences of this sudden rise is the steep hike in the number of people who are facing financial problems thanks to payday loans. That’s because the loans have high interest rates, which makes it tough, sometimes impossible, for borrowers to fully replay the loan when it’s due.
However, people working in the payday loan industry don’t see it as an evil that needs to be eradicated. They say that these loans are most often used by people with legitimate emergencies, like needed medicine for a sick child or necessary car repairs. They claim that taking a payday loan is better than the only other alternative available to people — writing a bad check. This would mean facing an even more severe penalty from their bank. 49abcnews.com reports:
But over at Consumer Credit, the counselors hold out hope that people will educate themselves on the perils of payday loans and have a back up plan for those last minute money emergencies.
Read more: Benefits, consequences associated with payday loans