Despite the fact that most people are familiar with the drawbacks of payday loans, the industry continues to grow.
According to this resource, there are approximately 23,000 payday loan stores in the United States.
Despite the drawbacks, there are many reasons people continue to flock to payday loans. These include:
- Easy to apply and qualify. This is nothing like a bank loan. Instead, you can apply for a payday loan and have the money within 24 hours. This simplicity attracts many people.
- As a short-term loan, you have the opportunity to pay the money back as soon as your next paycheck arrives. Unfortunately, many people neglect to do so, thus getting hit with an extremely high interest charge.
- Easy to find. As noted above, there are more than 20,000 payday loan stores in the United States alone. No matter where you live, you won’t have to look far to find a few stores that are more than willing to do business with you.
As tempting as it may be to apply for a payday loan, don’t let the perceived benefits outweigh the drawbacks.
You must understand that these loans have a high rate of interest. Furthermore, there are many fees that will take money out of your pocket. And if all that isn’t enough, consider this: the terms and conditions always favor the lender, not the borrower.
Payday lenders do their best to appeal to a large audience. This is how they get more business and make more money.
As a consumer, you should realize that the benefits of a payday loan will never outweigh the drawbacks.