Given the current state of the economy, there are millions of people who are suffering from bad credit and a lot of debt. More importantly, there are a lot of poverty stricken individuals who are suffering from a poor life that makes them easy targets for certain marketing tricks by the payday loan industry. The people that have started marketing campaigns in the industry are ruthless for their ability to market well to individuals that do not really benefit all that much from getting payday loans in a fashion that traps them into paying for months or years.
It is a shame that so many payday loan companies utilize this method, but it is something that is being contested for many months. The reason it is so contentious is because there are a lot of people getting into debt due to these advertisements. The government thinks they are too aggressive and many people who follow the debate would agree.
Bad Credit OK Advertisements
A lot of the payday loan companies have things that are along the lines of “bad credit OK” or similar such statements that can really cause problems for people that are trying to avoid getting into debt. When it comes to most debt, there are a lot of barriers to entry and most bankers and creditors are not going to openly advertise to waste their time with people that will not pay them back. Because the payday loan industry actually makes more money and profits off of failure, it is a good idea for them to advertise to anyone in this way.
There is a huge difference between the payday loan industry and that of many other industries. The main difference is just that the payday loan companies can really benefit even when someone is in financial trouble. By getting them hooked on a payday loan trap, they can get money from them for many months and years on end without ever having the original debt paid off.
This is one of the biggest problems with the payday loan industry and it is one that is forever costing people a lot of time and money. Hopefully it is something that can be curbed with price or interest rate capping, but there is a lot of evidence to suggest this will not help. Northern states have tried these and other methods so it is just up to the government to stop aggressive ads and educate people about finances.
Easy Money Hard to Resist
The payday loan companies prey on the fact that it is easy money and very hard to resist. Most people who are considered to be poor will try to get these funds as soon as possible, but with the right education can be convinced that it is not worth it to get into this type of debt. We can’t stress enough that if you must get a payday loan shop around to get the best rate and make sure you can pay it back quickly. If you find yourself in deep with these debts please give us a call. We can absolutely help you out of the trap.