Questions About Payday Loans?


Payday loans are a growing segment of the lending industry in the United States.  With tough economic times and many banks and similar financial institutions tightening their lending criteria some folks are faced with the prospect of taking out a payday loan.  Like any consumer transaction due diligence is required.  Horror stories abound about the endless cycle some borrowers face when trying to pay off payday loans.  This is not to say that all payday loans are bad news but one would be well-advised to think long and hard before undertaking them.

The Consumer Financial Protection Bureau has a frequently asked questions page devoted to the subject of payday loans.  Click here to learn more about payday loans.  And if you are experiencing problems with your payday loan feel free to contact me for a consultation.

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3 Comments

  1. Personal loans can be a good resource for many who need cash quickly. Some lenders to have steep stipulations which can have the consumer in a rut. But not all lender options are bad. There are reliable resources for obtaining cash quickly through loans.

    • It is true that payday loans may be available when other forms of financing are not but it is also unfortunately true that payday loans, rent-to-own arrangements, and title loans are fraught with peril. Too many of these loans have exorbitant interest rates, undisclosed terms, onerous terms, overzealous creditors, and other bad features. I think it is more than fair to say that these types of “loans” should be used as last resorts and even then should be studied carefully. I frequently receive emails and calls from consumers with problems involving these types of “loans”.

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