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In defense of payday lenders
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Payday lenders are often blamed for taking advantage of the little guy. But that's something that Justin Davis, a payday lender in Kansas City, Missouri, takes issue with.
"For me and my business, I try to treat my customers right," says Davis. "As long as people do the math, then they are not doing something stupid."
A recent study from Pew reports that the average payday loan borrower ends up indebted for five months*, paying $520 in finance charges for loans averaging $375.
But Davis, who charges a 17 percent interest rate for a two-week loan, argues that his business can still be a good alternative for those who are trying to avoid even higher overdraft fees on late bills.
"My service is not only competitve with those fees, but in many instances, cheaper," Davis says. "Most banks will charge you a $4-a-day continuous overdraft fee."
*CORRECTION: An earlier version of this story incorrectly referred to the length of time a payday loan borrower remains in debt, according to a Pew study. According to the study, the average borrower is in debt for five months. The text has been corrected.
Everyone has a right to choose kind of lender whether they are one day paid or monthly. Lender charge more rate of interest than banks. I think before taking money from lender think twice banks provide better services then. Nice post…. Thanks to share with us!!
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There is different kind of lender in market who’s providing loan. Some lenders are fraud who charges more rate of interest to receive lot of money and some of them better lender who provide you better loan services at the reasonable rate. Check out some websites before taking the loan.
There are lots of lenders providing short-term loans today, but it's not right to think that all of them are predatory. There are reputable and trustworthy lenders who charge reasonable interest rates and do not charge and hidden fees, they just make their money. It’s not worth to forget that if a loan will bring you use depends on you also, it’s important to use payday loans prudently and apply to payday lenders only if it’s necessary. No one is forced to use payday loan services, every one has a right to choose. Furthermore, there are lots of lending options available today and it's possible to choose something more affordable. Financial experts warn consumers that loans till payday have high interest rates because they are short-term and unsecured so it's not worth to use them if you're not sure that the price is affordable for you.
Jennifer from https://paydayloansat.com/
I always check out this website before getting a loan - www.dollar-plan.com - My personal favourite are trusted payday because they can always get me a loan despite my poor credit history.
Consumer advocates have gone in the wrong direction since the economic downfall; everyone has it seems. You'd think that as consumers, we would have committed ourselves to be more diligent with our own finances, after seeing how brazen the banks are to pull a fast one... You'd think the government would have more than just a mere civil suit against the banks that defrauded the world economy into austerity... You'd think that consumer advocates would be holding the government accountable for this... Nope. Instead, they're blaming payday lenders and telling people it's not their fault for being so inept with their credit. Where did we go so wrong?
