Loans.org Explores The Hidden Yet Positive Side of Payday Lending
LOS ANGELES, July 8, 2013 Each type of consumer funding has both positive and negative stories, but the payday industry is one that seems to rarely offer anything positive. Loans.org recently interviewed actual payday loan borrowers and financial experts to get insiders’ perspectives on the industry.
Short-term loans can be abused, just like any other form of credit, but for a significant part of the United States, payday loans are a necessary form of assistance. Reports are published yearly about the industry, but statistics do not show how the industry impacts individual borrowers.
One 36-year-old travel agent told loans.org that once she understood the form of short-term credit, she was able to use it to her advantage.
For her most recent $700 payday loan, she knew that sufficient funds were headed her way in the next couple days.
“When I first started, I didn’t really have much knowledge about how the financial world worked,” she said of her first borrowing experiences. “[As time passed] I got wiser and knew that, going in, I had to have a plan of action for how I would pay it back.”
Not only are the experiences of actual borrowers being ignored, but academia is turning its back on payday loans as well.
Dr. Paige Skiba, associate professor of law at Vanderbilt Law School, told loans.org that when she began researching payday loans over a decade ago, academics were unknowledgeable about the industry and its importance. She now tries to cover the payday loan industry in an unbiased, scientific way.
“Payday loans are a crucial source of credit for millions of Americans, so it’s important for academics and policymakers, as well as consumers considering using the product to know how the industry works, what the benefits, consequences and potential pitfalls are,” Skiba said.
Due to her research, Skiba said she is frequently asked if payday loans are positive or negative.
“It is not black and white,” she said. “There is no unequivocal evidence out there that payday loans are all bad.”
For more interviews with actual payday loan borrowers and other experts, please read the article at http://loans.org/payday/articles/hidden-positive-side-cash-advance.
Additional articles, interviews, news and frequently asked questions about the payday loan industry are available at http://loans.org/payday.
loans.org is a leading lending authority website that covers financial news, produces informative articles, and answers frequently asked questions. In addition to providing lending-related information, loans.org also hosts a variety of free online application forms for prospective borrowers to use when applying for loans.