Payday loan lenders are not only located within low class neighborhoods. Many storefronts are opening up in less affluent suburbs as the economy continues to drag on sending more people in search of fast money help. The brick and mortar locations in Texas are swiftly moving into these new areas offering fast cash to struggling customers. There are very loose regulations, if any, to payday lenders in Texas. New payday loan and car title loan companies who are registering their business as "credit service organizations" staying away from any payday regulations at all.
Most people who are now seeking these low cost short-term loans need money to help out with health problems, fixing a car, or taking a trip to the doctor. Medical bills are the leading cause of high debt. Even a person with insurance will have to come up with a copay just to see the physician. It is just a tough economy all around and the rise in payday loan rates is a testimony of this.
Studies done by PEW Charitable Trust have confirmed that these payday lenders are making loans to those who earn up to $40,000. Their studies have also shown that people who are single or divorced, do not have a four year college degree, rent instead of own their home, and are African American are more likely are more likely to use payday loan lenders.
The state of Texas has looked into regulating the payday loan industry more within their state. So far, the efforts have failed. Some say it is due to the lobbying effort by the industry. Look in the news, you will find something going on consistently with the payday loan industry. Many states, which already regulate the loans, have been working on making them more restrictive or at least have more restrictions as a goal for the industry.
Borrowers who deal with companies which are not heavily regulated continue to get into debt problems with payday advance loans ebing they were not the best option for their problem in the first place. Someone who wants to use a payday loan lender for fast cash will only want to borrow the minimum amount needed. There are fees attached to this money and the payoff for both is expected within just a few short weeks. Those who borrow more than what was needed, will find themselves getting into double trouble.
There are customers who do not understand the regulations of their state. There are those in Texas who walk into a store and think that all regulations apply to them. Those who obtain a loan from a cash advance lender should shop around or try to prevent using a company which may be offshore or run by Native Americans. These types of lenders are not regulated and can use unfair lending practices.
Bottom line for a borrower, know your financial situation, what you can afford to pay back with your next paycheck or at least understand all conditions of the loan if you fail to pay off the loan on time. Knowledge is power and using it to build your finances strong is a great way to keep yourself from needing low cost payday loan lenders online.
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