Is it possible that a cash advance online could be partially responsible for the financial crisis in our country? There has been some speculation as to whether or not this is true, but it is far from the truth. Most financial institutions received billions of dollars in government money in order to bail them out of their financial messes, while cash advance and payday loan companies remained consistent. These short-term loans which usually are valued at $300-$400 dollars with no collateral to fall back on, are not the reasons behind any of the financial problems of the country.
Most people, who have too much debt, owe to plenty more creditors other than a cash advance online lender. Many have large long-term loans with mortgages and multiple car loans all backed by collateral. Loan payments are quite high each month and tax payers who are being affected by unemployment and under-employment are falling behind therefore in jeopardy of losing their homes. A monthly payment for one of these loans is higher than most cash advance balances. Credit card balances are usually much higher than short-term loans and the average person has many credit balances open with different people. Debt to income ratios are super high creating limited disposable income to take care of emergency finances or unexpected costs. Cash advances online are not to be blamed for the financial crisis which has stormed American banks accounts and businesses.
Some worry whether or not creating less access to cash advances online would pose substantial personal difficulties such as an influx in bounced checks, having utilities disconnected and with little to no savings which will help take care of medical emergencies or car repairs. Some states have already banned these short-term loans while the rest have put caps on loan amounts as well as the cost of fees and interest. These laws were set up in order to protect consumers from predatory lenders. Putting more restraints on the cash advance online industry could create a disservice to those who use them to keep their finances in good condition.
How does a cash advance online help?
More focus should be reported on the good that cash advance lenders have brought to customers’ finances:
- Help support too many unexpected bills.
- Provide relief with emergency costs.
- More cost effective fees than overdraft charges.
- More cost effective than late charges.
- Keeps negative reports from your credit history.
- Brings fast relief to a financially challenging situation.
- No open balance to temp future spending.
