The pay day loan industry is one of the fastest growing businesses concepts that our country has ever seen. Supposedly it is set-up for emergency access to money when you needed the money like yesterday. This industry sprung up on the skirts of epidemic bankruptcies in the USA. Working class people had become accustomed to spending more than they had on the promise to pay the money back at a later date. Predictably such types of spending habits catch up with you and eventually people become so over extended with credit card payments, cars that they could not afford but wanted -- and got anyway plus any of a number of other buy now pay later types of purchases that record bankruptcies were the result of many families coming to reality with …show more content…
Credit checks normally are not done when you apply for a Pay Day Loan so your credit history isn 't held against you. Some companies are members of a inner circle type of credit checking system that checks for bounced checks and how many other pay day loans a client has out. Too many of these types of issue can limit the amount of money you can borrow or disqualify you all together. That 's really all the information most companies ask for and then are willing to loan a person as much as $1,500 on their promise to pay them back. With all of these financial negatives in the pay day loan industry one might wonder how companies could ever make a profit, the answer is in their finances fees. Because pay day loan companies understand that they are mostly dealing with people with bad credit problems to begin their rates are based on what sector of the financial world they are dealing with. Because they don 't bother to do credit history checks, other than what is apparent on your bank statement this of course likely means they assume you are a high risk when you walk through their office door and thus even people with a great credit history who find themselves in a bind will see finances fees normally ranging from 20% per 14 days or about 588% annually, and these fees can go all the way up to 38.50% depending on the pay day loan company you
Payday Lending (sometimes called cash advance): The borrower uses a post-dated check or electronic checking account information as collateral for a short-term loan. Borrowers need only personal identification, a checking account, and income to qualify.
Scott Gilmore's “Me, The Other Scott, And payday-loans” is an educational paper based on Gilmore's experience with financial fraud, the stresses of Payday Loans and the stigma behind people who use payday- loans. Payday-loans can be a lifesaver in a pinch, but could metaphorically kill you in the long run. Additionally, payday-loans target the financially unstable and people in less appealing urban areas because they assume they are the ones who need the loans. In my opinion, it is unfair to label someone using payday-loans as poor. Gilmore supports this point as he states, “these are respectable people with jobs facing unexpected car repair, or running too short to buy back to school supplies”. The reality is not
Late Payments: People do not realize that their payment history can significantly affect their credit score. Every bank or lender provides a due date for making a payment but they also provide a grace period before which the late fees is levied. This is where people make mistakes. They
Modern day American capitalism is founded on the concept of credit. Credit, as defined by Dictionary.com, is “ Confidence in a purchaser’s ability and intention to pay,displayed by entrusting the buyer with goods or services without immediate payment,” (Online Etymology Dictionary. Retrieved April 23, 2014, from Dictionary.com website). This pent up credit is what causes consumer debt to swallow individuals whole, robbing them of their financial security. This consumer debt, defined as “ Money owed by individuals, generally for goods or services that they have purchased,” has become a norm among our society (Consumer Debt. (2010). The reason as to why consumer debt is becoming a prime concern for Americans is the inability to make payments, predation of citizens by credit card companies, and how immediate relief leads to disastrous long term results.
Let me tell you something about Payday these are the loans which will be approved within very short time called just within one hour.
Designed for the people having a large sum of loan to pay, compared to your monthly income.
Elliott states, “A college education should offer to all graduates similar opportunities to achieve financial success in the long run.” It does not in fact to that at all. Having high debt holds students back from that. It is sad you cannot go to school for what you are passionate about cause the fear of debt and not having good money after graduation. Article mentions, “two students investing similar levels of effort and ability in college and yet achieving dissimilar outcomes upon graduation. Obviously, there is a different in the post-graduation lives of students with and without debt” (Elliott). It would not be worth it to the one with debt because they cannot use their degree. All of your loans would not be worth it because of loan debt. I feel it would only be worth it if you had means on paying it back instead of struggling. Loans are not
Melzer, B. T. (2011) The real cost of credit access: Evidence from the payday lending market. The Quarterly Journal of Economics.
This blog post describes research on the effect of limits on payday lending. It notes that a study by Harold Cuffe and Christopher Gibbs has found that such restrictions not only restrict the number of payday loans being made, they also significantly reduce sales at liquor stores, particularly for those within 33 feet of a payday lender.
The interest rate could be up to 1000% of the amount of money that they borrowed, if they cannot repay the loan on time, just the interest fee itself can consume them alive. What's making the situation worse is the check-cashing stores themselves are unable to handle the flow of money with their customers. This is stated in the article, “For example, state regulators typically find that check-cashing stores don't have enough employees and don't train them well enough to conduct business soundly. And some check cashers have already been involved in floating illegal loans or schemes that allow businesses to avoid taxes.” Based on the lid piece of evidence, the article insists that passing the new bills brings no benefits but destruction to the entire economy. Now the problem is not only posed on the low-income families, large businesses are also one of the main concerns that can make the economy collapse. The government will no longer able to keep track on these large businesses if they don't have the accurate information about these corporations because the check-cashing stores have helped to compose fake
God created everyone equally, and everything happens in a person’s life is according to God’s plan. Every individual has fallen into debt situation at least one time in his or her life. If you are never in debt, then you are the luckiest person in the world; you have nothing to worry about. Every situation is different. Debt is something no one wants to happen. No one wants to be a victim of debt; however, sometimes they cannot avoid it because of their situations.
While both cash and credit are two acceptable forms of payment, they vary in many ways. Which one best suit your needs?
Daylight savings time has been something that individuals born post World War I have always had implemented in their lives. Many people never really consider the point of daylight savings time until it rolls around twice a year nor do they realize the original purpose. There are approximately 70 countries out of 196 that observe daylight savings time, at least in a portion of the country. Daylight savings time has had many changes throughout the history of it, but is it time to move on? Although there may be advantages such as more natural light, but disadvantages such as the disruptions with our circadian rhythms outweigh the advantages.
“Student loans can turn what should be a blessing—an education—into a burden” (Dave Ramsey). Student loans can cause many graduating students to feel lost and helpless because they have so much debt after graduating. Because of student loans, college students think they can just get through college and pay the loans off easily after they graduate since they will be making money. However, sometimes it isn’t that easy. You can graduate college without taking out one single loan!
The 3 advantages of salary would be one, it simplifies budgeting; “a monthly salary simplifies budgeting, because household bills are often due monthly” (Grace, n.d paragraph 2). Two, guaranteed pay; “a salaried employee receives a guaranteed amount of pay each pay day. This guaranteed payment is steady income that gives you peace of mind” (Grace n.d. paragraph 3). Three, “salaried employees receive competitive benefits and bonuses” (Grace, n.d paragraph 4). The disadvantages of a salary job would one, “if you are salaried- exempt, your employer does not have to pay you overtime if you work more than 40 hours per. Week” (Grace n.d paragraph 5). Two, “a monthly salary position has its ups and downs” (Grace n.d paragraph 1). Three, workers are