Payday loans compare favorably to many of the consumer alternatives that are offered. Many government officials that are pushing for state and federal regulation of the payday loan industry would like you to think that your being taken advantage of. The truth of the matter is, the high interest rates of these two week term loans performs better than you may think.
Lets compare a $100 payday advance with a $15 fee and 391% APR. That 391% APR is what these regulation nazi’s are complaining about, but compare that to it’s counter parts that are currently being used by the general public:
- $100 credit card balance with a $37 late fee… 956% APR
- $100 bounced check $55.59 NSF… 1449% APR
- $100 utility bill with a $46.16 late & reconnect fee… 1203% APR
Payday Loan Interest Rates
Lets be realistic, payday loans are under fire because the financial giants are missing out on there cut of the money. Many plans have been put forth to offer a better “more legitimate” rate through traditional financial institutions, but if you look at those plans and the requirements involved it’s nothing more than a ploy to get your money with the large financial companies, and to lock in accounts with their banks.
The word regulation to these government bureaucrats is just another term to describe a regulated source of income for their institutions to profit from. If you truly do not want to pay the high fees involved with payday loans and or cash advances, do not take out a loan. It’s time to take responsibility for yourself, nothing in this world is free least of all money.
Payday loans for the responsible party is extremely simple to manage.
- Borrow what you need.
- Make payments on time.
- Do not extend your two week loan.
Number 3 in this list is highly important. If you are unable to make payments on your payday loan or cash advance in the 2-4 week period you have the loan for, you should not be taking out the loan. Doing so is your own irresponsible decision and you deserve to pay the price.
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I am in the middle on this, I agree that consumers should take responsibility for their own financial actions, and often regulation tends to force people to do the right thing.
Also as a side note, if your bank is charging you $55 for a bounced check, you should find a different bank.
Please, are you able to PM me and inform me couple of additional thinks about this, I’m genuinely fan of your website…