Payday loans are viewed by most consumer advocates as the financial equivalent of a zombie virus.
They just eat income and create a viciously repeating cycle that consumes borrowers’ money; much like zombies consume brains and human flesh while infecting other people into becoming zombies.
However, these allegations are simply untrue. While no one really tries to become a zombie in most fictional stories, when it comes to payday loans, people willingly borrow them.
Payday Loans Articles
Mar, 19, 2013
America’s current approach to payday loan policy is that there isn’t a current approach to payday loan policy.
While the federal government did “protect” soldiers from the potential pitfalls of payday loans with the Military Lending Act of 2007, there hasn’t been any type of federal legislation approaching that level of regulation for civilians.
On a state-to-state level, payday loan regulation is a patchwork of regulatory levels ranging from draconian stifling to a hotbed of open lending activity.
Mar, 13, 2013
The dreaded Sequester is here.
Like a storm on the horizon slowly rolling towards America, it has finally arrived.
While the finger-pointing is in full swing in Washington D.C., the repercussions of the massive federal budget cuts are already being felt.
In fact, the Sequester’s squeeze may end up leading to a boom in payday loan borrowing.
Let’s take a brief and broad look at what the Sequester is before diving into how a massive budget cut would lead to a rise in payday lending.
Birth of Disaster
Feb, 12, 2013
When peoples’ wallets are light and money is tight, a number of them turn to payday loans.
It’s hard to imagine that before payday loans, the only option for cash-strapped individuals was to approach friends and family or take something valuable to a pawnshop. Borrowing a small amount of money from a bank would be helpful, but some banks can take weeks to process an application for a loan.
Since these options are tenuous at best, many people turn to payday loans.
Jan, 24, 2013
The war on payday lenders wages on.
Across the country, legislators and politicians fight to end payday loans once and for all. In addition, there are other voices emerging from those who believe in a right for financial choice and freedom.
But are their insights educated or simply biased?
Support in an Unlikely Realm
Although there are few non-business advocates for payday loans, one collegiate professor does see a need for short-term lenders within the economy.
Dec, 5, 2012
Pro-regulatory and pro-lender factions in the payday loan war continue to duke-it-out across the country. As one county gets new zoning laws or one payday loan lender backs a victorious political candidate, it is easy to forget that this war is a two-sided argument since news stories tend to be so one-sided. The media almost always covers tragic stories of borrowers who end up in massive debt traps rather than telling the story through an unbiased lens. While shedding light on payday loan victims isn’t inherently unbiased, refusing to cover the topic from the other side’s point-of-view is.
Nov, 6, 2012
The quintessential and often stigmatized payday loan can be found in inner city retail lending stores surrounded by pawnshops, high crime areas, and slow police response times. At least, that’s the average idea that comes to mind when one thinks of cash advances. Unfortunately, most questions about payday loans pertain to financing from retail lenders and not big banks. However, this interpretation needs a massive overhaul now that large financial institutions have entered the fray.
Oct, 26, 2012
Once again, Christmas will be here before anyone realizes it. Time flies and the holiday season will soon arrive. While everyone loves a good holiday, it is sobering to remember that due to ongoing economic difficulties, not everyone can spend as much as they would like to during what should be times of joy.
Oct, 1, 2012
While consumer advocates have achieved some victories in court and on the streets regarding the ongoing payday loan wars, certain cash advance lenders are continuing to expand their foothold online. These lenders offer a specific type of financing called a merchant cash advance loan. Online retailers, or e-tailers, have found merchant cash advance loans to be a source of funding well suited to their online nature.
Sep, 7, 2012
The payday loan industry has seen better days. Just a few years ago, as the economy worsened, the cash advance loan business soared since financially desperate Americans turned to cash advances in order to make ends meet. But with more and more Americans taking out high interest payday loans, it was only a matter of time before some unscrupulous and unethical lenders appeared on the scene to take advantage of borrowers.