Considering we have spoken so poorly about payday loan lenders, it is a good idea to clarify some of the truths and falsehoods about them. Our clients have spent many frustrating hours trying to deal with lenders who hassle and berate them with lies and illegal threats. However, how many people actually know payday loan lenders and why they do their job? It is easy to vilify them for their misdeeds, but perhaps it is also wise to consider their point of view as well. This can help us to cope with the problems that we have.
Nerve Wracking Payday Loan Debt
In reality, most payday loan lenders have a nerve wracking time just like anyone else. Many families who take out loans are in need of the money so that they can survive and pay for food and other necessities. However, many of the lenders are trying to make a living without worrying about people who borrow money and do not pay it back. After all, they are stressed out that payday loan debt will go unpaid.
As many debt holders will attest, this is absolutely no excuse for the harassment that they put people through on a pretty routine basis. There is no reason to call people up to tell them that they are going to jail and they will be sued. That is illegal, immoral, and just plain wrong.
However, perhaps if you understand why it is that these lenders do this, you will have an easier time coping with their abuse. After all, they are trying to do the best for their families as well sometimes.
Consolidate Payday Loan Debt
Now you know that many of the lenders are also in situations that allow them to act so rudely. It is no excuse, but you can understand why they are so willing to consolidate payday loan debt. Thankfully, they are worried about getting paid all of the money back so they are willing to take a fraction of the money from us in order to at least recuperate some of their losses.
Nonetheless, when they are asking for 300-1000% returns on their small investment, that is altogether too big. However, the lack of repayment causes the free market to determine the rates of interest on these loans. In order for many of the lenders to break even or be able to pay the bills, they must charge high interest rates to cover the people who never pay back the money at all.
A Sad Industry
Overall, the payday loan debt industry is a sad one. At every step of the way there is some questionable morality and incentive to do things that most civil people would never do. It is unfortunate that so much is riding on payment of those loans, but the fight between lenders and borrowers is one that could leave the loser without food.
Hopefully with time the industry will change for the better. Restrictions will someday allow lenders to make the money that they need without hassling the borrowers. In the meantime, hopefully this article has given you an idea of what it is like to be a money lender. This will give you an easier time or insight to understanding their harassment.