Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Trump Stocks and Crypto Mania 2025 Incoming as Bitcoin Breaks Above $100k - 8th Dec 24
Gold Price Multiple Confirmations - Are You Ready? - 8th Dec 24
Gold Price Monster Upleg Lives - 8th Dec 24
Stock & Crypto Markets Going into December 2024 - 2nd Dec 24
US Presidential Election Year Stock Market Seasonal Trend - 29th Nov 24
Who controls the past controls the future: who controls the present controls the past - 29th Nov 24
Gold After Trump Wins - 29th Nov 24
The AI Stocks, Housing, Inflation and Bitcoin Crypto Mega-trends - 27th Nov 24
Gold Price Ahead of the Thanksgiving Weekend - 27th Nov 24
Bitcoin Gravy Train Trend Forecast to June 2025 - 24th Nov 24
Stocks, Bitcoin and Crypto Markets Breaking Bad on Donald Trump Pump - 21st Nov 24
Gold Price To Re-Test $2,700 - 21st Nov 24
Stock Market Sentiment Speaks: This Is My Strong Warning To You - 21st Nov 24
Financial Crisis 2025 - This is Going to Shock People! - 21st Nov 24
Dubai Deluge - AI Tech Stocks Earnings Correction Opportunities - 18th Nov 24
Why President Trump Has NO Real Power - Deep State Military Industrial Complex - 8th Nov 24
Social Grant Increases and Serge Belamant Amid South Africa's New Political Landscape - 8th Nov 24
Is Forex Worth It? - 8th Nov 24
Nvidia Numero Uno in Count Down to President Donald Pump Election Victory - 5th Nov 24
Trump or Harris - Who Wins US Presidential Election 2024 Forecast Prediction - 5th Nov 24
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Payday Loans Get Criticised – Again

Personal_Finance / Debt & Loans Feb 07, 2013 - 03:17 PM GMT

By: Submissions

Personal_Finance

Brent Wayne writes: Payday loans always seem to be being criticised and this time it is because there is a feeling that students are being unfairly targeted for them. A payday loan is an expensive way to borrow because it is aimed at people with a poor credit record, which may mean that they have been in debt a lot in the past or that they have no history of borrowing. It is felt that these people are the ones that are most vulnerable in society and so they should not be being targeted.


Payday loans claim to be filling a gap in the market and providing finance to those in need, where there were no solutions before. This means that someone who cannot borrow from anyone else and who is desperate for money can use this facility. The problem is, when it all spirals out of control.

If a loan is taken and then paid off when due, everything is fine. A person needs some extra money to pay a bill before pay day arrives, then pays back the money. However, the problem occurs when there is not enough money to pay the loan back. This could end up in the person either having to pay fees and having the interest build up even more or they get out another loan to pay for the original one. The first circumstance is bad enough as the debt builds up, but by speaking to the lender, a more manageable payment plan could be worked out. By getting another loan, the debt can easily get out of control as higher and higher value loans will need to be taken out to cover the cost of the loan plus interest. If this was done every month on a £100 loan, within four months the interest could easily be higher than the amount borrowed in the first place.

Payday loan companies (like) have been criticised for not ensuring that their customers have the means to pay back the money before they allow them the loan. This is slightly unfair as most lenders, with the exception of mortgage lenders, do not do this sort of check. However, the loans are aimed at people who have shown they have not got good financial sense.

The blame could be put on the education system though. If people were taught in schools about money and how to budget, then they could better cope with it when they were older. Relying on parents, who have not had financial education, to teach their children is not going to work. Something else needs to be done, to help everyone understand more about the importance of spending money wisely.

Author's Bio: Brent Wayne is a professional writer with a focus on finance and economy. He is currently writing for No-credit-check-payday-loans.co.uk

© 2013 Copyright Brent Wayne - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in