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Payday Loan Companies Prey On The Poor
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Payday Loan Companies Prey On The Poor

Let me ask you a question?

If you needed money and I said to you I could lend you the money and the interest rate per year will be 400% - would you take the loan?

Probably not – but the crazy thing is, this is happening every single day in the United States – to the toon of 19 million Americans per year that end up in payday loan debt.

These payday loan companies know exactly what they are doing – go drive around and take notice where these guys set up shop.

You sure won’t find them in your more financially stable communities – but you will find them on almost every corner of the poorest communities.

And why is that?

Well I will say it because it's been known for the longest time but never really spoken about to outsiders – you can make millions if not billions of the back of the poorest people.

Unfortunately many of the people in these poorer communities have no place to turn when they have a financial crisis – so they have little choice but to use these payday loan companies.

And what’s even sadder is that once someone gets hooked on payday loans it’s very hard to get out of this trap.

It is estimated that one third of the people that use payday loan companies end up taking anywhere between 11 to 19 loans per year.

And like I mentioned earlier with the interest rate about 20 times more than a traditional bank loan these companies are raking in over 7 billion dollars per year in interest and fees.

These payday loan companies need to be stopped, they prey on the poor and they do it knowing these people have no place to turn and are desperate enough that they have no choice but to agree to these hideous interest rates and fees.

Studies have also revealed that over 50,000 Americans have gone bankrupt because of payday loans.

But it goes even deeper - many major banks are investing in the payday loan companies. These banks are closing down branches in poor communities and setting up more branches in wealthy communities.

And why wouldn't they do this?

There are not going to lend money to people that have little chance of paying it back, better known as a high risk loan.

However the payday loan companies are more than happy to move in and set up shop and provide their services. But the big banks aren't stupid they see the money that can be made so of course they are investing millions into the payday loan companies.

So they can still be seen as the friendly bank but are making big money of the backs of the poor – disgusting if you ask me.

But luckily there are other companies out there fighting the good fight and are determined to help anyone unfortunate enough to get caught in the payday loan trap.

There is a way out – these companies have what is called a payday loan consolidation program that everyone qualifies for to help people get out of the payday loan trap.

If you are one of the millions of people that is caught in the payday loan trap seek these companies out they are there to help you.

And as for the payday loan vultures the sooner they all get closed down the better.


Street Talk

It is a brutal country we live in when it comes to taking care of our less fortunate. Big business seems to look for the DEAL no matter what the cost is to society. Keep up the good work Leo, we may be the only thing between the poor and the sharks.

Reply
  about 9 years ago
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