Have you ever wondered why quick payday loans are so popular and widely used on a daily basis? The majority of payday loan advance users rely on these loans primarily because their budget has gotten out of control. You have suddenly found out that you have been given a raise. This takes your standard salary of just $20,000 and pushes you up to an astronomical $25,000 a year. This seems like a lot of money to you but what are you really going to do with that additional $5,000 a year? The majority of consumers fail to remember that the additional $5,000 a year that they are now getting is not really an extra $5,000 in the bank. Rather this is additional money that you would receive in the course of a year and if you consider that the average tax rate is 28% you are actually looking at taking home about $5,000 a year minus the 28% taxes. This breaks the average yearly money you are taking home down to just $3,600 a year.
Does this still sound quite so great? I am sure it still seems like a fabulous amount, but let us consider for a moment that you are paid weekly. Now we need to take that $3,600 a year and break it down into what you are actually bringing home a week. The average amount is just over $69 dollars a week, which may be a bit of a boost to your paycheck but is certainly not going to allow you to miraculous retire immediately. But one of the biggest mistakes that consumers make is they get a better job, an additional bit of cash or even win a small amount in the lottery and start making huge changes to their lifestyle. So the consumer who used to rely on a payday loan is now earning more money and should now be free of a stressed budget which required them to seek payday loans right?
Consumers go out and upgrade their cell phone plan, they buy a new car, they buy a bigger house, move to a new apartment, the choices are almost unlimited but the final result is the same thing. They are suddenly finding themselves spending out a lot more money each month than they actually have coming in which creates a huge problem in terms of how to effectively manage a budget and start saving money when your budget is stretched far beyond capacity. Suddenly you find yourself sitting around wondering where did all of that money go.
This is a mistake that a lot of consumers make, and it is not just the young adults who are fresh in the work force, this is a mistake that plagues consumers and employees regardless of how old they are, and regardless of whether they are making $25,000 a year or $150,000 a year. The American dream is to have the best and to own the best. But at what cost does this really come? How are you ever expected to get ahead and ensure that you can stay on top of your bills?
For the times when a raise does not just grow on a tree ready to be plucked at any given moment there is the ability to easily and quickly turn to a fast payday loans to help you ensure that you are able to pay your bills. As your budget grows and the amount of money you have coming in each month grows as well, there are sure to be times when a bit of additional cash is a great benefit, for those moments when your bank account is empty and your raise just cannot cover all of your expenses you know that a bit of fast cash may be your only answer.…
All around the country there are people who strongly disagree that an Online Payday Loan can be a helpful tool to have. Yet discovering new ways to replace the void that a cash advance fills is never easy. For example, in Virginia lately there is legislation moving through the government that would limit the interest that can be charged in a cash advance to only 36%, which is a very sharp decrease from the 390% that is currently charged on average. Yet how will this really impact the cash advance industry as well as the consumers themselves who look to a cash advance as a quick way to get some much needed cash? The ultimate question lies in what happens in terms of interest rates. While cash advances are certainly a bad idea if you become trapped in them, they do provide a useful benefit to the consumers in the country who have bad credit and not enough money in the bank to cover sudden expenses. Sadly, to say that this category of consumer covers much more than many people would ever like to admit, yet it is an important and crucial statement that needs to be looked at very closely.
For companies who are criticized as being extremely harsh on the poor and those with bad credit, the cash advance industry only works typically with those who are limited in income. While occasionally there will be someone with a very good job who applies, the majority of people who are applying for a cash advance typically have nowhere else to turn in order to get the help that they need with their bills and finances. This means that overall the cash advance industry is able to help consumers a great deal.
States such as Virginia seem to be leading the pack with legislature designed to limit the harsh effects that a cash advance can have on consumers, but the main problem that is being heavily ignored is what will happen to consumers once the cash advance industry comes to a halt? For consumers who have bad credit where are they expected to turn in order to gain the money that they need to cover unexpected expenses? The problems of finding quick cash when you are in a pinch is something that has existed for a very long time, and it is certainly not likely to disappear anytime in the near future.
Ensuring that consumers have the access to cash that they need is very important to ensure that consumers are able to survive. Without the added benefits that a payday loan provides it is extremely difficult for many consumers to survive and this throws many people into a huge bind. While protesting the ideas of banning payday advances always sounds like a fabulous idea, there are plenty of consequences and considerations that need to be taken into account first. Do legislatures have a glorified plan to lend money to consumers when payday loan providers decides that risks are too high to lend money to customers in their state? What will the aftermath be due to these politicians who are blindly throwing laws around?
People who are pushing to cut out the cash advance industry tend to fail to look at how these consumers would be able to meet their short term financial needs. This causes huge problems, so while it may appear that a cash advance is pure evil and serves no useful purpose to citizens it is safe to say that it also assists a lot of consumers at making sure they are able to stay afloat in a very harsh financial world. While the battle between states and these necessary payday advance loans rage on there are evident numbers of customers who support and back payday lenders because they know that they can obtain fast money anytime it is needed. With 60% + of payday loan recipients receiving Payday Loans Online many states recognize that there will be a very large void to fill if these short term loans are banned. A prime example of slashing payday loan rates is evident when you look at the latest laws which affect military personnel. When a cap of 36% were put on any dependent of an elisted military applicant payday lenders simply pre-screen and deny any customer who qualifies under the new legislation. Without a good solid plan to grant financing to families in need these law makers definately needs to think twice and act once.…