PayDay Loans: Are Consumers Really “Victims of PayDay Loans” or A Victim of their Own Greed?
Payday loans are only a threat to the consumer if they do not understand the terms of a loan. Payday loans are just what their title suggests, they are loans that can get you through an unexpected expense from payday to payday. They are not long term loans.
The payment schedule, terms, and interest amounts are all spelled out in a contract that the consumer has to read and sign.How can a consumer be a victim to something when they have all of the details laid out in front of them to read?
With any loan, you should never borrow more than you can afford to pay back. The payday loans are no different, they are not meant for long term expenses. It does not take a genius to figure out that if your paycheck is $350.00 a week, you cannot afford to borrow $500.00.
The consumers are falling victim to their own greed. Just because you qualify for a $1,500.00 loan, doesn’t mean that you should borrow that much if you can’t pay it back.
It is a sad fact that in some states, they have put restrictions on payday loans that are causing some of the pay day loan offices to shut their doors & put them out of business, all because a select group of people cannot manage their own finances.
There has never been these issues with car dealerships , or any other administration that offers some type of financing. The contracts are not deceitful in any way, all of the details are spelled out, right there in black and white to be read, signed and agreed to. If the payday loan companies were misleading their customers, of course , it would be a different story. What this all boils down to is bad judgment on behalf of the consumers.
In the current state of our economy, I think that there would be more important things to place restrictions on other than payday loans. No one has given a second thought to the employees of the payday loan companies that will be out of a job, and all because someone with no financial fundamentals makes a poor judgement call.
Th consumers that are using the payday loans properly are not the ones that are complaining. The complaints are coming from the people who had no business taking out a loan that they could not pay back.
Instead of placing bans on the payday loan industry, maybe the government should take the time to better educate people on finances.