Payday loan providers do not prey on the poor

It’s been alleged that personal loan companies, like Payday advance providers, prey on the poor and desperate. A payroll loans is offered to individuals too desperate for cash to pass up the opportunity, or so the story goes. The borrowers are then responsible for payments no one can make, and thus begins an endless cycle of debt. The catch, of course, is that payday lenders do not prey on the poor. If it was true that payday loan companies were lending only to the poorest and most desperate to exploit them, the industry would have gone out of business long ago. Resource for this article – Payday personal loan companies could not prey on the poor if they tried by Personal Money Store.

The average money advance consumer

Demographic studies would show if Payday loan providers preyed on the poor mostly. That isn’t true. It’s different. The average short term personal loan borrower is really the definition of middle class. The bulk of payday customers make between $25,000 and $50,000 per year, they are more likely to be high school graduates or have completed some college, be married, have children and be younger than 45 years of age. The government gives the argument that payday lenders are predatory. This is given because sometimes borrowers can’t pay back. Lending money to individuals who cannot repay it is not a really good business strategy. Loan providers only make about $2 off most payday advances anyway which makes it even harder to believe.

Cash advance stores cannot lend to just any person

Many think that cash advance loan companies just want to hook individuals into borrowing. This assumes that they lend to any person who walks via the doors. That is not at all true. 11 percent of all applicants applying for pay day loans are entirely turned down while 20 percent of very first time applicants are rejected. You will find criteria for small loans certainly. Do you would like to know how to get a cash advance? What criteria is needed? That is not hard to discover. It’s having some definite payday cash coming in.

Follow the crusaders advice and do not hold water

The idea that payday loan providers lend to any person is ludicrous. If borrowers were struggling to repay, no payday advance store would stay in business long. The profit margin isn’t really big. It is 10 percent or less usually. Financial institution of The United States makes much more than that most of the time. Want more facts and statistics of payday loans? Personal Money Store has them for you.