The Credit Crunch
It may have been years ago but banks are still gun shy about loaning out money, especially to those with bad credit. A lot of the banks have not yet fully recovered and do not want to put ‘bad debt’ back on their books. So, if banks won’t loan money to bad credit, high risk individuals, payday loan lenders will. Everybody needs a source of credit and if the government and large institutional banks won’t do it, let those who will do it.
Large Credit Card Balances
Credit card debt has reached a high of $900 billion dollars which represents almost $4,000 per person. A lot of people no longer have credit left in their credit card accounts to borrow more money when they need it the most. Although it was the consumer’s fault that they let themselves get too far into credit card debt, the need of quick cash in an emergency is still there.
Emergencies that cause financial problems are never going to go away. Although other forms of credit do exist, very few are as fast and convenient for consumers to draw from. Payday loans are set up for speed and for those who need quick cash the most. If your car breaks down, a medical emergency happens, something breaks in your home or anything else unexpected that costs money, a slow bank loan will not help you. Payday loans are still one of the best options in dealing with these types of emergencies.