Breaking the Payday Loan Cycle

Personal Loans for Debt Consolidation

Loans Now has a variety of personal loan options that you may qualify for that could end what is usually described as a chronic debt situation.  When you need to repeatedly utilize high interest rate loans with high borrowing costs you decrease your purchasing power by decreasing your financial effectiveness.

Payday Loans

Effectively, a payday loan with a 20% interest rate reduces the value of the borrower’s dollar to $0.80 – a significant loss in value.

Currently there are an estimated 5 million consumers of payday loans in its $46 billion annual market – projected annual cost of payday loans to consumers – $3.5 billion.    If one of your clients or potential clients has to repeatedly utilize the high-cost source of funding their chronic debt situation could possibly be permanently resolved with an unsecured personal loan that would allow them to consolidate his or her high-cost financial obligations.

Effective regulation to ensure your client isn’t paying an excessive interest rate for their short-term financial needs shouldn’t be left to agency enforcement.  You could potentially protect them from predatory lending practices by presenting them with an alternate source of funding. Go with bad credit personal loans not payday loans and your dollar will go further.