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Payday Loan Quick Sand, Are You Sinking?
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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)

Seems these loan companies are becoming more and more of a problem by the day and finally some are fighting back.

Philadelphia Speaks!

Philadelphia has done more than most places in the fight to get rid of these companies by making a law that does not allow these companies to charge outrageous interest rates. The companies responded by closing their brick and mortar stores in the city. They claim they can not be profitable under this law.

Loan companies respond!

I say see you later, but unfortunately, that is not the case. Many of these companies have just changed tactics and started operations online. They are now charging illegal interest rates and tapping peoples bank accounts over and over. These companies are much more brutal than their brick and mortar relatives, and they are extremely hard to track down and prosecute.

They will relocate and change names to continue operations, and once they have your bank account info it is almost impossible to get rid of them. Closing your account is really the only way to dispute their activities.

Prosecutors respond

The good news is some companies have been tracked down and charged, and hopefully more will follow. These loan companies really need to be put out of business, and the best way to do that is by not using them.

Because people keep running out and getting what they think is easy money, and not being realistic with themselves about being able to pay this money back on the first due date like these loans were originally designed for, these companies are going to keep thriving.

The average payday loan now lasts 5 months, is rolled over between 4 to 5 times before being retired, and ends up costing the borrower up to 10 times the original amount.

What if I am already trapped and sinking?

The best way to get out of the payday loan trap is to contact a reputable payday loan consolidation company and get these loans taken care of. Once you get them retired do not take out another one of these loans for any reason!

These consolidation companies will save your hide, and the sooner you contact them the more money they can save you.

I hope this article helps you understand how these companies work, and why to avoid them at all costs.

Please feel free to share this article and leave any questions and comments below!


Street Talk

Great article

Reply
  about 9 years ago

Shawn, great info on this and I agree with Lewis, you need to do a book, and diversify while still getting your awesome information out their so that you can reach even more people. Thanks so much!

Reply
  about 9 years ago

Thanks Judith, I am seriously thinking about this.

Reply
  about 9 years ago

What a shame that the average loan ends up being 10 times greater. I'm glad Philly did something about these crooks, but I guess it didn't help in the long run. It's good you're getting the word out about this. I just read that consumers who had recently applied for payday loans are now seeing suspicious charges on their credit cards - "cramming" it's called. Just like they used to do on phone bills. It is getting worse.

Reply
  about 9 years ago

it sure is, and unlike the old phone bills, with these guys we can do something about it, we can just not give them any business. Thanks for stopping by Lisa!

Reply
  about 9 years ago

Shawn, there has to be a book idea behind the payday loan series. The articles are great!

Reply
  about 9 years ago

You know Lewis, I think you may be on to something there.

Reply
  about 9 years ago
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