Posts Tagged ‘personal loans’

20
Sep

How Important Is Payday Lending To Local Communities

Posted by Emily

More and more families and shared households are facing a common challenge on a wider scale.  The challenge is the shortage of funds. The economy’s current state as well as the surge of job losses in this nation has left many families turning to new alternatives that would have never been previously considered.  We hear many testimonies and have been called “life savers”  in many cases during hard times. One customer reported that she was able to use a payday loan to avoid the high Non-Sufficient Funds (NSF) charged by the banks.  The average bank fee for (NSF) $35 per charge, compared to the finance fees charged by most payday lending companies which start at around $15-$20 and up. Many have depleted savings, and borrow money from friends and family to get by during critical times.  Many have taken on jobs that pay far less than what  the household was accustomed to bringing in.  While the unemployment rate is steady and job creation and development has been slow, many have begun to entertain the thought of obtaining short term loans.  This is where the Payday Loan industry fits into the picture.

Who are some of the consumers of payday loans? Having to borrow money is obviously not something most families like to report.  However, according to the Survey of Consumer Finance Data (SCF) the average consumer of a payday loan is approximately aged 36-39, is Caucasian, and has some college education, but  no degree.  Another %19 of borrowers taking out payday loans do have a college degree.  Industry figures as well as the SCF’s data show that the mean income for families who took out a cash advance payday loans was in the range but not much over $32,000, whereas the households bringing an income closer to $80,000 and above were less likely to take out a payday loan.  The Federation of International Civil Servants Association reports that their payday loan borrowers have an average household income of  more than $40,000.   Another report stated that the average family income for families taking out payday loans ranged between $25,000 to $49,000.

Much can be said from this data. Not only does it thwart the previous information stating that payday loans were only utilized by low income households, but it shows the frequent use of these loans by families with both low income and middle class incomes. It also clearly addresses the necessity of having access to this type of service for both income levels.

We may be able to help you during your cash shortage. Apply here

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11
Nov

Finance Survives Credit Crunch

Posted by admin

payday loansThe website  Motorpoint has reported that people looking to buy cars are still looking for the proper credit arrangements to finance the deals including the right personal loans.

In the pole that went on for a week , a little over half of the people that participated in the survey said they would consider getting a car loan , in spite of the fact that many loans had been curtailed. The managing editor at Motorpoint had this to say:

“The results of our survey show that people are still more than willing to use credit to purchase their next vehicle.”

In other related news,  Honda will go ahead with plans to cut jobs at its Swindon factory. This move could very well put some workers in the position where they will need some manner of online cash advance.

The Union involved have said that they are suspicious about where the money was used that was saved from agreed to cut backs.

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11
Nov

US Banks Maintain Tight Leash On Loans

Posted by admin

payday loanThe latest reports are stating that the credit crunch is far from loosening its grip on consumer loans and by proxy personal loans.

The report that was released last week  blamed tight credit as the reason that at least parts of the recession continue to hang on . JP-Morgan Chase & Co are just a few of the banks that have lowered their lending rates. Still,  with the bigger banks still keeping the money close, it seems that more people will begin to explore all that payday loans have to offer.

There does seem to be at least a little bit of a bright side however. With less money being freed up for consumer loans, it’s a safe bet that the interest rates will not see any drastic jumps over the next while.



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