The Pay Day Loan Industry Essay

The Pay Day Loan Industry Essay

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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 their poor spending habits. Ronald Reagan used the term "Trickle Down" economy, which basically means the same thing as buy now and pay later at astronomical rates. The 1980 's generation practiced this new philosophy and by the look of things it was passed down to the next generation. Pay day loans came in to offer these distressed families who the banks and normal loan companies wouldn 't work with and gave them a new alternative when it came to getting a loan in a hurry, but of course it came at a very high price. Some pay day loan companies finance rates were as high as 38.50% -- on a 14 day loan. Over the course of a year that would be approximately a 988% APR. Such high rates make a 28.50% annual credit card rate appear generous - which of course it is not. Pay day loans work like this; you bring in basic information such as a photo ID, for example your Driver 's License or State ID. You will need to show your Social Security Card 's and you are required to have a working telephone num...

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... to 10 years. You would get an approval for the money that is as per your settlement state and monetary ability. With the help of the sum that comes into your hands, you can do any thing. One can pay for his remaining debts as and when he wants. You can apply with a free of cost and no obligation online application form, that would be made available to you on the website of the money lenders. You have to fill it with your genuine personal details. Once the process of verification is over, you would get an approval. In as less time as possible, the money would come into your account. This online things would make the filling and faxing task zero. In this process of money lending, the money lenders have a bendable approach as far as any the borrower with stained credit record and concerned. Such a person would get an approval suitably without any delay from his side.

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