The Payday Loan Trap
by Solution Loans on 05/01/12
Each year, an estimated 12 million Americans are caught in long-term debt from loans that were marketed as a quick, easy and short-term solution. Even though most payday loans are to be repaid within two weeks, borrowers become indebted for more than half of the year, on average.
Since 2007, no state has authorized this small loan product. Additionally, the District of Columbia and six states - Arkansas, Arizona, New Hampshire, Ohio, Oregon and Montana – have all enacted meaningful reforms.
Yet for people living in the states without payday loan protections, these small dollar loans continue to worsen financial problems. Loan terms that require full payment in as little time as two weeks plus an average 400 percent annual interest, catch borrowers in a turnstile of debt. Before long, payday’s cycle of debt denies dollars for household budget items like child care, groceries or utilities.
Use Solution Loans installment loans to escape this trape and realize your freedom from the endless cycle of payday lenders.
