Info about current customer financial debt makes criticizing payday loan lenders look foolish. The sum total of all loans from payday lending firms lent per year is under $50 billion. Credit cards, by the way, have over 20 times the loans lent out per year. The worst part is that mainstream sources of financial debt are encouraged to acquire. That makes things like credit cards and mortgages far more of a financial debt trap than a payday loan ever might be.
Payday cash loan are not the reason for the $11 trillion debt trap
According to Fortune, the mortgage industry does far more in business than payday loan lenders do. The mortgage debt is over $10.6 trillion. For years and years you are meant to pay on a mortgage and credit card. There is over $822 billion in debt from credit cards. To come up with the $1.6 trillion in debt left you’ve to add student loans, autoloans and installment loans. What is amazing is that this debt is reduced from earlier years.
Even if a payday lender tried to compete… they couldn't
The payday cash advance loan industry is 20 times smaller than the credit card industry. The total amount of all payday loans lent out in a year is still under $50 billion. Furthermore, most studies of profitability of the short term loan industry indicate profits at the largest of payday lenders are 10 percent or less. Pay day loan are actually a convenient and efficient choice for lending despite what people lead you to believe.
Small fish in a huge pond
If you did your homework you would know that a payday loan is very different than a credit card and other styles of borrowing. The credit industries make enough money to market to the masses and slander payday lender. When payday lenders don’t make enough money to fight back. You can read more within the Payday Loan Facts and Statistics Report on Personal Money Store The Payday Loan Facts and Statistics Report on Personal Money Store can give you more information.
Information from
Finance Fortune
finance.fortune.cnn.com/2010/11/10/consumer-debts-wont-return-anytime-soon/
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