Direct payday loan lenders provide access to emergency cash when the demand falls before the next paycheck. Many Americans live paycheck to paycheck waiting desperately for the next payday to come. Those who receive tax refunds from the IRS and state governments wait eagerly for the arrival to help balance out some debt and bring relief to the need for additional cash. But what would happen if you lost your job and that next paycheck was your last or the government held back your tax return? Having no money is scary position to be in, but when you owe money, the lack of available cash can be even more detrimental to your situation.
Chicago is a big city. The city government took steps into their own hands to collect on old delinquent debt. People who owe fees for unpaid parking tickets, red light citations or fines form administration hearings found their state taxes this year were garnished. Depending on how much you owed the city from 2005 to the present determined how much they took out of your taxes. It sounds horrible and for many people brought more devastation to their budget, but what is the city supposed to do?
One good thing which came out of this is that the funds collected ended up being $2.5 million more than what the city had anticipated. With the $11 million collected, the city was able to create 20,000 summer youth jobs and covered the initial cost of hiring 500 more policemen to protect the city.
Some payday loan lenders give back.
Business is business for many financial companies. Some though step out of the rigid box and do give back to the community. The better the business, the more revenue, which turns into more jobs for the area. There are companies who offer giveaways to those who are not a customer. When times are good then more people will be positively affected. But when times are bad and too much money has not come back in to pay back the loans the business and the employees can be negatively affected as well.
Debt adversely affects the economy of the country. When people do not have money to spend or to pay back borrowed cash, then businesses suffer which can put more people out of work making the situation worsen along the way. The success of the Chicago offensive collecting plan will drive the continuance of the program and may also get other cities to follow suit. Any type of collections will be processed towards anyone who is delinquent in some way. The city went after those who owed money for making errors and not paying the fine. Online payday loan lenders will go after those who have missed payments or stopped paying all together. When payments are still not received, then the debt will be sold to a collections agency. This money took longer to collect and therefore cost the company more to collect on it. This leaves the company at a loss and both lender and borrower hurt.
Responsible lending and borrowing are the best mix for a successful loan. It isn’t rocket science. If you borrow money, pay it back. If you get caught doing something wrong and a charged a fine, pay it and learn from your mistake. The city has a right to collect no matter inconvenience it creates for the debtor. Creditors have the same rights but will take different avenues unless it is a government debt that you owe.
