The Problem with Payday Loans: A Debt Trap difficult to breakby Solution Loans on 05/14/12
In today’s economy, most people are feeling financially stressed. Whether making ends meet on retirement benefits or living from paycheck-to paycheck, or few if any savings, the costs of daily living seem beyond the financial capability of many people.
When these issues are struck by unexpected or emergency expenses, many consumers who need only a few hundred dollars may consider a payday loan. Yet for almost all payday borrowers, payday loans’ triple-digit interest rates only worsen – not improve – their finances.
Strategically located in low-income neighborhoods, payday loan stores reap millions in profits from a product designed to force borrowers into repeat loans. With each loan renewal or flip, borrowers become unable to both repay the lender and have enough money left until the next payday arrives. The trap of recycled debt is also how billions are taken each year from poor people.
With an installment loans from Solution Loans, consumers that are currently stuck in the payday loan trap can find relief knowing that their loan pays down with every payment. Combine this with payments that are structured to each consumers financial situation ensures your successful escape from the endless cycle of payday lenders.