Payday Advance Loans

Payday advance loans are your ticket to the big time. Find out all you need to know today.

Payday Advance Loans - Pros And Cons

Lately there has been a lot of talk of short-term borrowing services in the media. Some people are for them, some against, but as always, the government is caught in the middle. Learn more today.

The Complaints about these services

Those who complain do so because they are angry about government regulations. As of now the government does not regulate how much money you can get and how much companies can charge for giving this money out. People only borrow from short-term lenders when they have no other options - so supply and demand are not really relevant in this situation. If loan companies all increase the amount they charge customers per dollar they borrow customers will have no choice but continue to pay the price. This is also common with online borrowing. The service is convenient, but is mainly controlled by the lenders.

As rates appear today, customers are really losing money. Still that doesn't stop people from taking the funds because they need the money. The so-called "no faxing payday loans" policies of many institutions make these fast cash transfers easier than ever. The government needs to install regulatory prices for these advances so that loan companies will not drive each other's prices up. People who borrow are already in financial distress - we shouldn't force them into worse debt.

Arguments for them

Those who are payday advance loans argue that those getting them are in control of their decision to get the loan. Many think these services have saved those in severe debt troubles. There are many editorials about the perils of instant borrowing options.

"The personal loans industry has come to the rescue of mothers with sick children, people with broken down cars, teachers who are paid only once a month and customers from all walks of life who want to avoid bounced check fees, late credit card payments, late car payments and late mortgage payment charges."

- Richard Rawle, The Desert News (UT), Opinion Editorial, July 11, 2002

Payday advance loans belief and theory

People like Rawle believe that these services are helping all types of people. But he does not address the fact that these people are still being penalized for getting paid only once a month or having car trouble by having to pay these high fees. Though the extra money helps them initially, these teachers and mother he speaks of still are victims of the economics of hardship. This is important.

Still the issue of short-term borrowing is a controversial one. Many urge the government to establish regulations on borrowing charges, but the process, like always, is a slow one. For now these services have virtually no regulation- so if you do get one shop around for the best rates. And be careful. How can you be careful? You can research prospective lenders at the site of the Better Business Bureau and www.ripoffreport.com. If there are no complaints, you may proceed. But be sure your providers answer your questions directly - especially with regard to how much you can expect the fee to be.


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