Emergency Payday Loans

Written by Jeremy Horelick
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Emergency payday loans are one the first lines of defense for many needy individuals and families looking for quick funds. Despite the fact that thousands of people nationwide turn to payday loans for help in a pinch, the industry continues to come under fire by representatives of commercial banks. Many of these corporate institutions simply cannot match the rates offered by same day payday loans companies and therefore try to disparage the industry as a whole.

To do this, banks perpetuate certain well-loved myths about emergency payday loans. One is that these small allotments only help drug users, alcoholics, and criminals stay solvent long enough to find their next fix, drink, or victim. This stereotype persists in spite of the fact that exhaustive studies put out by Georgetown University, the National Taxpayers Union, and the Community Financial Services Association of America (CFSA) show this to be false.

What These Studies Say about Emergency Payday Loans

While the particulars of each study vary, the overarching idea confirmed by these reports is that emergency payday loans do not take advantage of unwitting consumers. To the contrary, applicants are well aware of the fees and penalties they incur if they fail to meet the terms of their agreement. A full 92% (according to Georgetown) believe that emergency payday loans are a valuable service, while four percent more than that (96%) understand full-well how these businesses make money.

These facts fly directly in the face of assertions made by banks and other lenders that the payday loans business is a predatory one. Accident victims, low-wage earners, and the suddenly unemployed all make use of these services, and not in the ways that most banks report. In actuality, only a tiny fraction of overall users look to payday loans on a regular basis. The overwhelming majority employ them as one-time-only measures to combat unforeseen financial strains.


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