Ways to Avoid Payday Loans at the Grocery Store

Written by David Schmidt. Posted in debt

A lot of people who are forced to get payday loans are not making adequate use of the money that they do have. Many state departments are trying to offer solutions to teach uneducated and low income individuals about finances so that they can reduce their expenses and hopefully get out of debt. There are ways to avoid payday loan debt altogether with the right purchasing decisions.

In the following article, we will give you a few tips so that you can avoid payday loans if possible. By saving money on food, you can reduce the most expensive thing that you spend money on a regular basis.

Nutrition and the Grocery Store

When it comes to eating on a budget, a healthy diet might seem like it is hard to achieve. However, it is actually a lot easier to achieve than you may suspect. Most people who are buying groceries at the store do not consider a few things. First, they often neglect all of the benefits of living a healthy lifestyle. This includes things like reduced medicare and medical bills. It also involves less time away from work and losing money to medications.

To get affordable groceries that are healthy, consider supplementation with a full multivitamin. This type of product will give you all of the nutrients that you need in order to live a healthy lifestyle and may even offer you the ability to skip purchasing certain foods. Still, you can purchase a lot of different types of vegetables that have various nutrients responsible for good health.

The good thing about these vegetables is that they will fill you up a lot faster than the non-healthy foods. Buying chips and snacks is not only expensive and can cause you to spend more money than you need, but they will also not be nutritious enough for you to maintain a healthy diet. Instead focus all your money on healthy meat options and vegetables. If you do this at the grocery store, you will be able to avoid spending too much money at the store and hopefully avoid payday loans.

Saving Money on Household Supplies

Another option that you can use in order to save money is to purchase household supplies in a cost effective manner. You will always need toilet paper and paper towels, but there is no reason to spend way too much. Incorporate bulk purchases and then reuse the things that you can. Oatmeal and coffee tins can be reused for a variety of other purchases (including starting your own garden to provide vegetables).

By buying in bulk and keeping an eye on your wallet, you can do a lot to save money at the store. Even if it is only $10 each time you visit the store, it might add up to $100 over the course of a month. That money is enough to pay for many utilities and could keep you from needing a payday loan. Even a small amount helps for some of the financially strapped individuals who fall victim to a payday loan trap.

Religion Fights Payday Lending

Written by David Schmidt. Posted in debt

The southern United States is notorious for their religious nature. It is a part of the culture that is as deeply ingrained as anything else in that region of the world. This religious nature often makes it difficult for people to do anything that might be construed as against God or Christianity in any way.

Unfortunately for the payday loan industry, religious people in Alabama have found something seriously wrong with the way that they are doing business. According to many in Presbyterian congregations, the payday loan industry is extorting people in ways that Jesus would have never approved of.

Alabama Payday Loan Bills

Two specific bills have made their way through legislative branches in Alabama with an effort of limiting the effect of payday loan industries. Most of these industries are able to make a lot of money off of individuals who are trying to get by on monthly bills and end up trapped in a cycle of debt. Some situations even include a $100 debt requiring $17.50 in interest. A loan of $1000 is therefore $175 for the interest rate, which is extortion according to many.

Some Presbyterian ministers from Alabama have come from across the state to the capital in order to protest the extortion of the payday loan industry. Ross Reddick is one such man who came from his Sylacauga, Alabama home to spend time protesting what is going on in the state.

Interest rates of 400% are not rare and it is commonplace for people to file for bankruptcy after getting into a large cycle of debt that consists of many years of work.

Changing the Law Isn’t So Easy

Unfortunately, the two bills that were supposed to make such a great change for the people of Alabama was watered down considerably before it ever made it anywhere in committee. The bills were both changed to avoid some of the problems that the payday loan industry has with these stipulations and regulations that inhibit their ability to make money.

For a lot of people, this is a sad state of affairs. They were so close to changing the law in their favor in Alabama, but things have not gone their way for a long time. It seems that people will not be able to count on their state government to protect them so long as the interest groups have the power to make changes in legislation. Just bare in mind if you must get a payday loan make sure you are able to pay it back quickly. As well, never get another loan to pay off a loan. Most people get into the trap even further by getting more loans to pay off their other debt.

Predatory Lending Practices

Written by David Schmidt. Posted in debt

Predatory lending and loan sharksLenders do not have a lot of fear when it comes to trying to make money. Of course, their only real goal is to generate profit and benefit the shareholders who stand to get rich as a result of the efforts. All of that being said, it is still not something that is either good for society or communities. In the case of the United States, there are plenty of communities that are being ripped apart not only by the payday loan debts, but also because of the debate about what to do with the loans and the lending laws that are in place.

Many regions of the country are desperately seeking other methods of getting payday loans under control. Some have proposed to do capping and others to regulate other aspects of the market. The payday loan industries see the writing on the wall and are trying to influence this legislation as much as possible; they have usually succeeded, but it is becoming less possible for them to do so now. Thankfully, people are waking up to the predatory lending practices that they are using.

Middlemen in Payday Loan Debt

One of the things that the government is going after is the middlemen who are providing payday lenders with all of the information that they need in order to target common men and women who are just trying to get through their day with work and family responsibilities. The majority of these middlemen are lead generation websites that can make a lot of money from getting information and sending it over to the payday loan companies. These middlemen are able to get all of the advantages that they could want from working in the industry, which includes great kickbacks, profit, and not a lot of scruples involved.

These middlemen can make millions of dollars by selling bank account information, email and even home addresses for the payday loan companies. It is something that a lot of people are having issues with in the modern world.

Harassment and Marketing

The two other predatory lending practices that many people despise are the marketing ideas that come from many of the cash advance companies. For example, people who are trying to market a certain loan will write things like “Bad Credit OK”, which makes it really hard for people to avoid getting the money that they need.

Finally, the harassment that comes after getting the loan is something that a lot of people are trying to overcome at all costs. It is one of the real big problems in the industry that is getting slowly eradicated with the help of some of the legitimate payday loan consolidation companies that are out there today.

Why Payday Loans Will Never Go Away

Written by David Schmidt. Posted in debt

Payday loan moneyA recent bill in Louisiana was not passed for a few different reason, but namely because the payday loan industry was able to convince enough people that they are a good thing for the state to have. It comes right in the face of a new study showing that the payday loan industry cost the state of Louisiana around $142 million in net economic activity over the past few years. It is a huge issue that many people are contemplating, but there are some serious considerations moving forward with payday lending reform.

The first is that the payday loans are never going to completely leave the state even if everyone wanted them to. For the most part, the urban poor and even many in the rural areas need the assistance of the payday loan companies when it comes to emergencies and other similar types of loans. Even studies are showing that they would find the money elsewhere if they did not get it from a payday loan, which has prompted many lawmakers to re-consider their decisions.

Payday Lending and Regulation

One of the biggest problems with the regulation is that the payday loan companies have a lot of sway and support because of the money that they control. Many of them are putting a lot of money into things like the lobbying firms that can help them to get influence in the legislatures and then make changes the way that they want them.

Most of the regulators know that this is happening in some regard, but have to be cautious with how they approach it. If they are too relaxed, there could be political problems; a Utah governor was forced to resign after it was obvious that payday loan companies were too close with that party after failing to pass a bill.

Yet, there are plenty of politicians that do not want to make waves with the payday loan and financial companies of that nature. They are trying to avoid the regulation because it obviously suits them from a financial and political perspective.

The other issue, which is arguably more important, is the fact that these people in poorer regions actually need the loans in order to survive! Many people who are trying to get over their problems with the payday loans will need to be able pay off these debts as soon as possible, but it can’t happen without the right kind of legal status.

Choosing Consolidation Over Bankruptcy

Written by David Schmidt. Posted in debt

There are a lot of people who think that it is so simple to get rid of their payday loans with a simple bankruptcy agreement. In general, this is something that must be carefully considered and one that can cost people a lot of money over the long term. More importantly, for some of the poorer people who decide to opt for bankruptcy, it is a method that prevents them from having any kind of future in borrowing in most situations. No creditor, not even a payday loan company, wants to provide the money to someone who just decides to get bankruptcy protection every time the debt burden gets too large.

When it comes to options for a person with too much payday loan debt, it is a good idea to choose consolidation over any other method. There are a few reasons why a payday loan consolidation might be in order for your dues. The first reason is if you are trying to borrow money at some other point in your life. As you will see, getting money is going to require some credit and bankruptcy can ruin that for a long time. Families that have children and have emergencies need to be able to get the loan money they need.

Consolidation Process for Payday Loans

A lot of people who go through the payday loan trap find that they need help at some point towards the end. After paying for a few of the different interest rate payments and getting stuck with some of the other issues, it is hard to continue paying for the amount that the payday lenders are asking. In many situations it is then easy to consider bankruptcy, but this is not a good option for anyone that wants to maintain any semblance of credit.

Instead, it is a lot better for you to look for options like payday loan consolidation. By getting loans consolidated, it is possible to pay them all to one single place with a lower interest rate over a longer period of time. This can typically be useful for people that have many loans to many different places and need the help of a professional to get rid of the debt for them.

The consolidation experts often have time in the industry already, which is why many of them are so eager to help you out. They have put in their time to the industry and they know how hard it can be to get the things done that you are looking for. I general terms, they are people that know the industry inside and out and didn’t really like how they were treating people!

With their connections, you can actually get rid of your payday loan debt and even if it takes a while, you will have paid a lot less overall. It will also be fine for most people to get a loan afterwards if there is an emergency and payment is needed at a slower rate.

Either way, consolidating payday loans is a much better way of doing things than the method of bankruptcy which can cost you down the line.

Return of the Payday Loan

Written by David Schmidt. Posted in debt

Over the past decade the fluctuations for payday loans has been back and forth depending on the level of public interest and outcry. A lot of people think that the payday loan industry is evil and getting many people ensnared in debt in order to take advantage. Many lawmakers take these issues seriously and try to make a difference by regulating certain aspects. The only unfortunate aspect is that the people who are trying to utilize the payday loans in order to survive sometimes fight back as well.

In some northern states, the payday loan industry and those who use the funds are fighting back. Pennsylvania has labeled payday lending as predatory, but a new bill could legalize the industry completely. Even though people are using certain companies for payday lending already, getting additional funds in the way of a payday loan company is a big change for people of PA.

Power and Money in Government

One of the biggest reasons why the payday loan industry has been able to come and go is because of how much influence and money they have for the local governments. A lot of people dislike what is going on with payday lending and it is important to consider the repercussions of public opinion on the local governments. However, when the public opinion cools down a bit, the money can flow back to the government and change whatever needs to be altered.

When it comes to the Pennsylvania state government, the money has flowed back into this most recent bill so that they could allow for payday lending in a legal fashion within the state. Even though many other states already allow it, Pennsylvania is one of those that does not. Making sure that you have the right kind of loan could save your life, but these companies should not be able to alter the law in such a way!

Payday Lending Companies in PA Today

A large chain of payday lending is called ACE Cash Express. They typically offer payday loans and similar services, but because they are illegal in PA, they are forced to do other things. Namely, they are forced to sell money orders, process bill payments and a few other services as well. Altogether, it does not net them all that much money and it can’t help people in the way that they want to be helped.

However, this new bill can make it legal for ACE Cash Express to finally partake in some of the services that they would like to be offering. The most profitable of these is obviously payday lending where they can make high margins without worrying much about the cost.

Since 2005 companies have been pushing to bring back the payday lending as best as possible. It does not always happen but the money they have at their disposal makes it a lot easier for them to be successful.

Why Payday Lending Hurts Economies

Written by David Schmidt. Posted in debt

Economy and Payday LoansThere are a lot of professional economists that spend a lot of time looking at trends and how different things can influence society and a certain culture. For example, when it comes to payday loan debt of the populace, some people have been able to take this data and extrapolate with other data in order to see the effect on the economy. Rather than seeing just the taxes that are paid by payday loan companies and considering it a positive, these economists analyze aspects of the loans with sociologists, anthropologists and many others in order to find out the true cost for the economy.

Unfortunately for payday loan companies, it seems as though the net cost for a lot of the state economies in the southern United States is millions of dollars in the red. That means there are several companies paying a lot of money in taxes, but it still has a negative net effect on the economy as a whole. How is it possible that such a system is occurring?

Payday Loan Costs to Society

One of the major costs that payday loan companies come with is the reduced spending on goods elsewhere. Consumer goods are a large part of the United States economy and domestic consumption is a huge issue that many economists look at. When it comes to things like buying food and groceries and other supplies, payday loans can really kill the consumption. Another key point to this equation is the fact that many of the lower class and urban poor are the ones that spend the most as a proportion of their total income. Many of them spend whatever money they have on consumer items rather than saving like wealthier people do.

Therefore, the people who are so poor and typically spend a lot of money are instead paying millions of dollars cumulatively to the payday loan companies who are cashing in on their debt. For many of the businesses and restaurants in those areas, this is hurting big time. Economists think that by putting a cap on the interest rates that payday loans are allowed to charge, it can have a big impact on the way that people continue their lives.

Hopefully people who are trying to get out of payday loan debt will realize that they can use a payday loan consolidation expert to their advantage. These experts know their way around the industry and may have even worked in it for a while. They can help you to better understand what you need to do in order to get through the tough times that you might be facing.

In general, it is very difficult to calculate the exact cost of the payday loan companies on a society, but it is a good exercise to figure it out and make a difference in the way our modern American culture is running in the future.

If you ever find yourself in need of money during a desperate time, make sure you find out exactly how much interest you will be paying. More importantly, can you afford to pay this loan back quickly?

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