Today more than ever, it seems you can’t drive anywhere without passing a payday loan company. In years past, most payday loan companies seemed to be concentrated in low income urban areas. However, today it’s hard to drive through any suburban community and not locate a payday lender. A misconception is that payroll loan companies specifically focus on poorer under privileged families. Surprisingly, a recent report prepared by U.S. Department of Commerce indicated the average income of a payday loan borrow is actually $42,260. That amount is obviously well above the Nation’s poverty level.
Living paycheck to paycheck has caused many people to seek payday loan companies
The reasons payday loan companies are popping-up everywhere is simply due to an ever increasing number of people who are living from paycheck to paycheck. Anytime they experience a financial setback perhaps due to an unexpected emergency, a payday loan from a reputable payday lender helps bridge the gap between paydays.
Perhaps no other segment of the financial markets has grown more substantially that that of payday lending. According to Government statistics, in 2012 more than $10 billion dollars in payday lending occurred throughout the United States. With most State regulators limiting payday loans to $250 or less, payday loan companies are obviously making a lot of payday loans. In fact, there was more than $1.2 Billion in payday loans generated in California alone.
The US census reports there are more that 23,000 payday loan companies throughout the United States and that number is increasing dramatically every year. Payday lending is not just limited to small store street corner financing. More and more well respected banks are entering the market place, attracted by the higher rate, sub-prime market. In fact, it’s not uncommon to be rejected by a bank for an unsecured personal loan only to discover you will get approved for a higher rate cash advance or payday loan. either through their bank itself or one of their affiliates or subsidiaries.
Today, more than ever, payday lending has become big business and as a result more and more online payday loan companies are entering the marketplace. And while consumer demand for payday loans is increasing, competition among payday lenders is increasing as well.
Any family or individual should take notice there are many payday lenders to choose from. So performing a little research can translate into saving a lot of money or avoiding a lot of disappointment. In most cases, payday lenders provide a valuable service to their customers and are truly concerned with treating their customers fairly. But although all payday loan companies must meet State lending requirements, rates, terms and repayment policies can differ substantially between lenders. So it’s wise to get all your questions answered before agreeing to anything.
Nevertheless, if you find yourself experiencing a short term financial emergency, a payday loan can be a quick, easy and smart solution. There are a lot of legitimate payday loan companies to choose from. Most will not only value your business but will offer you great value as well.