online cash advance
Do Online cash advances trap consumers into a cycle of debt?
In the first article “Online cash advances | Will The Truth Please Step Forward” we had addressed the accusations against the online cash advance industry in regards to high interest rates.
Now we are going to talk about another accusation that is typically aimed at the online cash advances industry in order to discredit their reputable services. This issue is in regards to trapping consumers into a cycle of debt.
We as consumers make the wrong decisions that lead us into debt. No one else!
Opponents profess that because of the high interest rates, consumers are not able to pay back the loans they borrow from payday lenders thus incurring additional fees and penalties, which trap them into a never ending cycle of debt.
Although there is no doubt that consumers do get caught in cycles of debt, we need to ask why before we point fingers!
Online cash advances lenders offer some great services but unfortunately, they do not balance consumers’ checkbooks. Only adults can apply for these loans so it would be fair to say that if an applicant misses or fails to make their payment according to the terms that they have agreed to, it would be their fault, not the industry’s.
Granted, there are some slime balls out there fixing to take advantage of unsuspecting consumers, but you will find this type of activity in any existing industry.
Many places that offer online cash advances to consumers such as Personal Money Store, encourage their customers to exercise the responsible use of money. Spending some time on this blog will adequately prove this point.
Online cash advances are not discriminatory, anyone can apply and are given the right to do so but are also asked to meet the terms and conditions of borrowing the loan.
The Online cash advance Industry has been accused of preying on the poor!
Online cash advances Prey on the Poor
Another accusation is that the online cash advances industry preys on the poor. I guess that depends on what you consider poor. One of the criteria that the industry has when approving applicants for online cash advances is that they have a job! The demographics show that the average applicant for a online cash advance makes between thirty two and thirty eight thousand a year. That puts applicants on par with most of the American Middle class.
What may make the industry a little more vulnerable to criticism is the fact that loans are able to be given so quickly and with fewer qualification criteria than would be expected from a bank. So naturally, with a larger number of people who are applying under perhaps more desperate circumstances, there are bound to be those who end up not meeting their terms and are therefore penalized.
Keep in mind however that the online cash advances industry is a thriving business and would not be so if it habitually took advantage of customers. One happy customer will tell another person whereas one unhappy customer will tell ten.
Despite the unfair claims and bogus accusations made against the online cash advances industry, I personally don’t believe there is good reason to place legislation against it. Leave the decision to the American consumer. They can say yes or no, and the industry will survive or die by their decisions.
Simply put, if you don’t like online cash advances, don’t get one, and don’t be a lemming among the critics until you understand the issues.
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