Are Payday Loans Really Evil As People Say? Essay

1000 Words Sep 22nd, 2016 4 Pages
Are Payday Loans Really Evil as People Say?
Payday loans have become the bad guys in the story when they were created to get people out of debt when they are in desperate need; especially for those who can’t get the help from a bank, sometimes not even from friends and family. A lot people like President Obama say that payday loans where not created to help people. At first it seems like essay money. But the average borrower ends up spending about 200 days out of the year in debt (2). If we did not have payday companies with payday loans how else can people get money to get out for an unexpected expense? According to critics including President Obama “short-term, high-interest loans are predatory, trapping borrowers in a cycle of debt. But some economists see them as useful financial instrument for the people who need them. Payday loans are convenient, quickly available for those with no and or bad credit. Payday loans don’t really ask for much from the borrower you get a loan and agree to pay it back. Since the loans are for a short term they only place some type of hold to the borrower’s paycheck, until payday unless they come in and pay it themselves. Payday loans are small loans generally from $200 -$600 range about the average of a low incomes family paycheck, that are repayable in a few weeks when the borrower gets their next paycheck. You might say that the borrower is tied down to the loan until the loan is paid off, but then again the loans is only created for a…

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