All About Instant Cash Loans
Instant cash loans are often thought to be horrible evil companies that keep poor people poor and the rich owners just get more fat and more rich. Well that is not necessarily the case. The primary owners of the more than 22,000 payday loan offices are small business owners. These small business owners average $60,000 to $120,000 a year. Not bad considering they put up their own start up money, risk everything every day, and add jobs and financial liquidity to the area. Let’s hit some of the points of why some say payday unsecured loans are evil.
High Fees
Federal law now requires the payday lender to translate their fees into APR. This makes the loan rate look horrible (100%+) However, other banking institutions don’t translate their fees into APR. Paying $3.50 for a $20 ATM withdrawl is over 400% APR. It’s the same thing with overdraft fees and late charges on credit cards. You would be money ahead to get your payday loan and avoid these fees. However, some would rather you be socially acceptable and pay more. No thank you.
They Hurt The Community
Opponents say that these fast cash loans hurt the community by offering up a service that will trap them. However, society has proven time and time again that if you take something away the community will replace it with something worse and often illegal. People will be fighting over personal loans between each other. The money will come from somewhere, and if they don’t fit the mold for traditional financing someone rougher than the payday loans will fill the place. Also, the payday lenders actually pay taxes and employ local people.
Overall instant cash loans are a good alternative to punitive measures by traditional banks. Plus the money from a payday lender stays local to the community instead of being sent back to a central bank, as long as you don’t use one of national companies you will find on the internet.
