National Payday Loan

National Payday Loan
Payday lending or​ making payday loans is​ now a​ booming industry,​ and with life getting tougher for many people each and every day,​ it’s only ever going to​ keep expanding.
At the​ same time,​ it's an​ often unregulated business,​ with 17 states of​ the​ USA in​ effect banning payday lending altogether due to​ the​ apparent lawlessness of​ the​ industry.
It's not that hard to​ see why there is​ such a​ problem .​
Although such payday loans are intended to​ be short term arrangements only,​ basically getting you​ through to​ your next pay check,​ unfortunately,​ for many people,​ that’s not the​ way it​ actually works out .​
And with industry average interest rates around 470% APR,​ one has to​ ask,​ why is​ this industry growing so rapidly?
The answer is​ that it​ is​ providing a​ service that is​ required,​ at​ a​ price that the​ consumers can afford; the​ actual APR is​ of​ no great interest to​ the​ customer,​ because their only concern is​ Can I​ afford to​ repay the​ loan on​ my next payday?
Why do consumers use payday loans? the​ answer probably falls into two parts:
First,​ because it​ is​ a​ fast,​ convenient way of​ getting quick cash (and now that it​ can be done online,​ it’s even easier) and,​ second,​ because they probably cannot get credit any other way .​
For a​ borrower with a​ poor credit history payday loans offer a​ lifeline when it​ is​ most needed,​ to​ pay those unexpected bills or​ to​ prevent repossession of​ an​ item that has been bought on​ credit for example .​
Problems only arise when clients are unable to​ repay loans (but surely this applies to​ all forms of​ credit?) .​
Nevertheless,​ it’s undeniable that,​ with such astronomically high APR rates,​ it​ only takes a​ couple of​ missed payments for the​ initial small sum borrowed to​ become a​ major debt burden.
Take for example Ms .​
A’s case .​
She took a​ loan of​ $500,​ with interest due on​ repayment of​ this sum two weeks later,​ of​ $125 .​
Several missed payments down the​ road and the​ debt had ballooned to​ $3250,​ to​ repay a​ debt of​ only &500! How scary is​ that?
Of course,​ payday loans DO have a​ role to​ play in​ the​ day to​ day life of​ modern America and there are many industry insiders,​ from the​ more reputable lenders,​ who are pushing hard for the​ introduction of​ stricter regulations,​ regulations that could then be introduced across the​ nation,​ rather than on​ a​ state by state basis .​
In this way,​ the​ consumer will know exactly where they stand in​ terms of​ the​ laws relating to​ payday lending,​ and it​ will be in​ the​ interests of​ the​ more reputable lenders to​ expand across the​ nation as​ well .​
This ensures that everyone has access to​ their services,​ thus removing them from the​ potential clutches of​ some of​ the​ less ethical money lenders.
As Jeann Ann Fox of​ the​ Consumer Federation of​ America puts it,​ the​ present system means that Payday lending is​ the​ poster child for predatory small loans that take advantage of​ consumers who have trouble making ends meet .​
A standardization of​ payday lending regulations and laws across the​ country should go a​ long way to​ making such a​ gloomy prognosis redundant in​ the​ future .​
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