Independent studies show that the estimated 19 million people per year, using the short-term payday loan access is usually the credit and intelligent as it was intended: as a short-term solution to expensive fees such as overdraft fees, late to avoid credit card payment fees and insufficient financing fees of banks and merchants. A recent study by the FDIC Overdraft fees determined that such fees can be an APR of 3520% worn.
According to "An Analysis of Consumers' Use of Payday Loans" by researchers Gregory Elliehausen the George Washington University, "Customers used the loans a small or moderate number of employees during the past year, usually for less than one month at a time ,. Such a use seems consistent with the intended purpose of payday loans for people with bad credit as short-term borrowing to pay for unexpected expenses or to relieve temporary shortfalls in income. "
New research by Bretton Woods Inc., a bank strategy consulting firm, shows that U.S. banks and savings banks $ 37000000000 anuually rise in fees on checking accounts covered. Nationally, the average U.S. household faces more than 12 overdraft transactions per year and pays $ 368 per year in fees. The research of bank strategist G. Michael Flores
shows the amount of the fees paid by the average household with a checking account, and explains how banks and credit unions are more dependent on these fees for income. There is no reason to believe that trend will change.
Finally, "some payday loan customers as a payday loan as a debt trap. Only about 3 percent of payday loan customers mentioned difficulty of getting out of debt as a reason for his discontent or only partially satisfied with their recent new payday loan. "
Even the Federal Reserve Bank in the January 2007 study found that payday loans are not only not "predatory", but - through the provision of loans, where otherwise there would be no - actually help customers households.
Do we Americans have a variety of loan options and allow them to decide what is best for them and their families. National Debt Relief Program provides services to those who caused the fault of payday loans are buried to help.
