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.…