As lawmakers, all around the country are working to help consumers as much as possible one of the biggest practices coming under fire is the use of online payday loans to help consumers. The biggest problem that consumers tend to face with the payday lenders is the fact that most consumers are looking at paying as much as 600% interest on a loan. New legislation that is being considered in several places around the country aims to cap the interest rates that is being charged to help protect consumers. However, what will truly happen if the interest rates are capped? Most of the lawmakers are looking at capping interest rates in the area of 36% percent or so. However compared to as much as 600% this is an enormous difference that could easily cause problems for the payday lenders who are forced to make ends meet as well. The real question is how exactly this is going to effect the profits as well as the future for the payday loan companies.
As thousands of consumers, each year turn to the high risk loan industry to help them make ends meet threatening the existence of the payday loan companies could essentially threaten the existence of many consumers as well. However ensuring that consumers are protected as well is also very important. In a world where budgets are stretched thinner than ever before it is critical to ensure that your bills are all paid and jeopardizing the mere existence of many consumers is not the best choice typically.
It is very important to ensure that consumers are all adequately protected from the predatory lenders; however, it is also extremely important that consumers have a method available to them that would allow them to be able to secure a payday loan in the event that they have an emergency need for cash. For example, consumers with bad credit have very few options that are available to them when they are trying to find a bit of additional money. For example, most pay day lenders typically have only an option of payday advance loans or even perhaps a title loan.
Not all consumers are comfortable with a title loan though and the number of consumers who are seeking out $1500 loan that are only temporary is growing greatly. This means that it is a great help to consumers having the ability to quickly grab some cash to cover unexpected expenses. However, with the high risk loan companies all coming under fire recently the options for consumers is steadily decreasing. As the options decrease, it is still important to ensure that consumers have access to the money that they need legally.
While it is obviously preferable that consumers have adequate savings that will accommodate problems that appear financially it is not always possible to happen. There are times when just about everyone needs help with their finances to ensure that all of their bills are paid, using a high risk loan responsibly can ensure that you have all of your bills paid when you need the money. Closing the predatory lenders by severely restricting the amount of interest that is charged can help to reduce the payments that are charged, however how the payday lenders will manage to survive in the face of greatly reduced interest payments is yet to be seen.