This Article is About
payday loan consolidation
payday loan lenders
payday lenders
credit unions
term money
payday loans
financial institutions
background check
debts
temptation
bankruptcy
banks
Payday Loan Consolidation Becomes Enemy Of Small Banks
Join 1000's of Authors at StreetArticles Today!

Payday Loan Consolidation Becomes Enemy Of Small Banks

It is no surprise that many payday loan lenders love the recent explosion in popularity of their services. Many lenders have been able to make a huge profit over the course of the last few years because there are so many people who need short-term money. More importantly, the number of payday lenders has also increased greatly as well. The increase is particular to small banks, credit unions, and other institutions that have historically not allowed such loans. However, the lucrative aspects of the industry are making many institutions change their opinions and attitudes toward the practice.

Why Small Banks Hate Payday Loan Consolidation

The availability of payday loans in the past few years has been caused because of the increasing demand that Americans are showing. This cycle has made many lenders quite rich, but the threat of loan consolidation has really started to irritate lenders. Many of the lenders are happy to be able to get some money out of customers that might otherwise just declare bankruptcy. However, the consolidation process is helping many borrowers get out of mountains of debt at rates that are not as profitable for the small banks, credit unions, and other financial institutions.

Nonetheless, the banks are going to have to get used to the payday loan consolidation so long as the industry continues to grow. Over the course of the next few years there are supposed to be 37% more lenders than there are today.

How This Affects You

The biggest problem with more lenders is that the temptation to borrow money is even greater than before. You will be faced with lenders wherever you go, which means you can technically borrow from many different lenders.

This is one of the easiest ways to fall victim to what is called the payday loan trap. Many of the people fall victim to this trap because there are so many lenders willing to offer money without much of a background check. People use many lenders to pay for something and then have debts to every single individual payday loan company. There are ways that people can get out of the debt by means of a payday loan consolidation even when they are faced with an increasing number of lenders. The main approach that is used is to get a payday loan debt settlement and get out of the debt cycle completely. Once all costs with the lenders are negotiated, its best to avoid getting another payday loan. Otherwise you will be using one to pay for another for years to come.


Street Talk

Hello David, good article. I have seen a large amount of Car Title and Pay Day Loan businesses popping up all over in many cities and rural areas. It sickens me that these "fellow" humans enjoy making a profit from strapped citizens. The Car Title places should be outlawed, people sometimes do not really read the fine print and do not realize that their car can be taken after say five oclock the same day that they miss a payment, you handed over the title so you are out of luck. Your article was well written and gave infomation that I didn't realize, the fact that people were going to many pay day lenders most out of desperation and have to pay huge interest rates, The fact that there is "no credit check" makes sense. They are not doing this as a gesture of good faith but instead are bringing more people into debt for their greedy purposes. Regards, April

Reply
  about 8 years ago

Excuse me if I don't feel too bad for those small banks. :) Pinned

Reply
  about 9 years ago

I don't think anyone does ;)

Reply
  about 9 years ago

Great article, It's a crazy state of affairs in the world, to much debt, and everyone seems to be drowning in it.

Reply
  about 9 years ago

Thanks Ty! And yes your quite right about that. I just deal with the worst of worst in debt for people ;)

Reply
  about 9 years ago
You May Also Like
Payday Loan Consolidation Scams
With the increase of people using payday loan companies as a short term solution for a financial emergency – more and more people are getting caught in what is known as the payday loan trap. And the trap is having too many loans. People get more than one loan –…
By: Leo E in  Finance  >  Debt Consolidation   Dec 02, 2012  
1
  Likes: 0

Post Holiday Financial Blues And How To Beat Them
Many people get desperate during the holiday season and take risks they would otherwise not find themselves taking. It could be the pressure of not enough money to cover gifts for our children, or the pressure of having to go to family gatherings without any presents to give Now they…
By: Shawn Lee  in  Finance  >  Debt Consolidation   Feb 28, 2013  
12
  Likes: 13

Payday Loan Consolidation Assistance
For many people, payday loan consolidation assistance is an option. Various loans and resources are available and can help you to stop the payday loan cycle for good. What to Look For Before you select any consolidation loan for your payday loan debt, keep in mind that all lenders are…
By: Leo E in  Finance  >  Debt Consolidation   Jan 24, 2013  
0
  Likes: 0

Straight Talk About Loan Consolidators
There is a lot of talk about loans and debtors in modern discourse mainly because so many people are plagued with these problems. Loans were easy to get for many years, which caused a number of problems when bubbles started to burst. Now, people are starting to realize that they…
By:  in  Finance  >  Debt Consolidation   Jul 01, 2012  
4
  Likes: 5

I Am Drowning In Payday Loans
A former colleague of mine was in the financial industry after the collapse of the economy in 2008. He was doing great until that year, but I never realized how far he had fallen until we spoke over the phone. He told me “I am drowning in payday loans” and…
By:  in  Finance  >  Debt Management   Aug 15, 2013  
6
  Likes: 6

I Have Too Many Payday Loans And Need Help
A good friend of mine spoke with me a few nights ago and told me “I have too many payday loans and need help.” At first I was surprised that he had turned to payday loans in order to fill the gap on his bills, but I quickly realized he…
By:  in  Finance  >  Debt Consolidation   Nov 07, 2012  
19
  Likes: 11

Help With Bills for Low Income Starts Here!
Many people are feeling the crunch of the economy, and many people are experiencing the need for quick cash. Unfortunately, this leads to risky choices that can land you deeply in debt. The good news is help with bills for low income starts here! What does that mean? What it…
By: Shawn Lee  in  Finance  >  Debt Relief   May 10, 2013  
2
  Likes: 0

Can You Consolidate Payday Loans?
Many people end up in trouble with payday loan debt and are asking, can you consolidate payday loans? The answer is a big yes, and the sooner the better. The main reason a person would want to consolidate these loans is because they are in default and or are stuck…
By: Shawn Lee  in  Finance  >  Debt Consolidation   Feb 05, 2013  
6
  Likes: 8

Payday Loan Quick Sand, Are You Sinking?
Sometimes all a person needs to do is ask a question and things all of a sudden become crystal clear. I started answering the phone at my business, this way. "Payday loan quicksand, are you sinking?" and people would respond yes! help! ( I own a payday loan consolidation website)…
By: Shawn Lee  in  Finance  >  PayDay Loans   Mar 11, 2013  
7
  Likes: 7

How Does Payday Loan Debt Consolidation Work?
Payday loan consolidation is a type of program that can help you to repay your debt over a longer period of time - instead of having to make a payment every few weeks. Consolidation is a term that often refers to the process of using a program designed to help…
By: Leo E in  Finance  >  Debt Consolidation   Dec 02, 2012  
1
  Likes: 0

Surviving Tough Economic Times
Since the beginning of the recession in the United States, many families have had a difficult time surviving. Many jobs have been lost over a wide range of industries, which is causing families to have to find new ways to cut costs and pay for the things that they need.…
By:  in  Finance  >  Debt Consolidation   Jul 03, 2012  
9
  Likes: 6

Illegal Payday Loans In Mississippi? Just the Opposite, Legal And Dangerous!
I read the following in a forum the other day a bit of advice a member was giving another member who had massive payday loan debt in Mississippi: "Illegal payday loans in Mississippi are ripping everybody off, and you do not have to pay them! Lets back up the buss…
By: Shawn Lee  in  Finance  >  PayDay Loans   Nov 15, 2012  
0
  Likes: 2

Maine's State Payday Loan Laws, Are Payday Loans Illegal?
I received an e mail yesterday wondering about Maines payday loan laws. The person wanted to know if they were illegal, and the answer is yes and no. While payday loans are illegal in the state of Maine, they may operate under the supervised lender law. Yes, they found a…
By: Shawn Lee  in  Finance  >  PayDay Loans   Nov 10, 2012  
0
  Likes: 1

Speaking Out Feels Good!
I have found that just letting myself get fired up over a cause is not enough. I have to get loud because speaking out feels good! When faced with an injustice like I see daily working in the payday loan consolidation business, I just have to take a step back…
By: Shawn Lee  in  Finance  >  PayDay Loans   Apr 29, 2013  
8
  Likes: 6

Get Help With Payday Loan Debts Today!
You wake up ready to face another day of phone calls at work, and at home. Messages from your parents and friends you used as references when you took out a payday loan telling you they keep getting calls for you, and all you can think is I need to…
By: Shawn Lee  in  Finance  >  PayDay Loans   Apr 22, 2013  
0
  Likes: 4

Article Views: 2133    Report this Article