According to a California assembly
man with the initials C.C, payday loans are a vital tool in these tough
economic times. C.C. says that his new bill to raise to amount of money
citizens can borrow with an online payday loan will help Californians in their
financial struggles.
"It is a financial tool for
poor people who routinely get rejected by banks and all other lending
institutions," C.C. stated in an e-mail.
One member of the California
Investment Coalition does not agree with C.C., and responded to his statement
by declaring that "if a person does not have enough money to make it
through the next two weeks it's not like that is suddenly going to change. It's
like if someone is treading water, you throw them an anchor. It's just going to
sink them."
Most men and women who take out
short term loans are not poor. In fact, the usually make between $25,000 and
$50,000 a year, qualifying them as middle-class Americans. These men and women
use payday loans to boost their credit, save money in their bank account, and
remedy finance issues that just come at a bad time, when the balance is low and
a paycheck is only a few weeks ahead.
These loans are similar to asking a
boss at work for a paycheck advance. Often a money need will arise when funds
are tightest, facilitating the need for payday loans and other such short-term
loan businesses.
Borrowers must be smart when
committing tone of these loans. They can be dangerous if you are not
financially stable or cannot repay the loan right when it is due. For the less
financially responsible, it is probably best to bypass a payday loan, because
once you get in, it can be hard to get out without the right amount of money.
A spokesman for the Community
Financial Association of America reminds borrowers that payday loans are never
beneficial as a long term credit solution. They are meant to last for up to one
month only, and if they are stretched beyond that the borrower has warped their
purpose and will reap financial consequences.
These loans can be very beneficial
when used in context. The CFSAA point out that it is much cheaper to take out a
payday loan in order to fix a car then lose a day's wages because you cannot
afford to fix the car yet without assistance. In similarity, it is better to
take out a short term loan to pay off a utility bill than pay the fee to
reconnect the utilities after they have been shut off.
In the end, a one of these loans can
be a very vital tool to fix a financial emergency, or even just pay for an
average expense when not financially fit to do so. If customers are wise with
their borrowing, they will experience a great benefit by taking out an online
payday loan .
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