Everyone is talking about the economy and how businesses and their employees are suffering. Many businesses have closed down; others have lain off a large portion of their workforce.
For a lot of folks that means finances are tight and finding financial help may mean a trip to the local strip mall to see a payday lender and an even quicker trip into a cash advance trap. Because while other companies may have been hit hard by the economy, payday lenders are one of a few businesses that are not seeing the same economic decline that other industries are seeing.
Payday Lenders and Economic Impact
Payday lending is all about extending cash loans to desperate individuals, typically those with poor credit who have no other option as traditional lending sources are tightening their belt. Unfortunately, what this does is encourage many hard working Americans to overextend their finances and get into the never-ending downward spiral of payday loan hell.
Yes, there is a place for payday loans especially in today's economic climate and especially given that the latest figures from the Community Financial Services Association (CFSA) and financial analysis firm Global Insight indicate that there are approximately 23,000 store front payday lenders providing about 155,000 jobs around the country. And this doesn't take into consideration the vendors and suppliers that support the PDL industry and are, therefore, positively impacted, too.
Unfortunately, too many borrowers end up needing help. And that's where payday loan consolidation services can come in handy.
PaydayLoan Solution Services Thrive, Too
When payday lenders do well, so do the payday loan consolidation services. However, along with payday consolidation there is a better option: payday loan resolution.
Paydayloan consolidation services help individuals who are in over their heads with too many payday loans by bringing their debts together into one monthly payment. It is important to remember that payday debt consolidation is not the same as payday debt resolution.
A debt consolidation companies take all your current financial obligations and combines them into a single loan amount allowing you to make one combined monthly payment. Unfortunately, the term of the loan is usually longer, the interest rate can be high, and it is all done without reducing your overall payday loan obligation.
On the other hand, a payday loan debt resolution company will focus only on your payday loan debts. A reputable and qualified company will work with your payday lenders to negotiate and reduce the total amount you owe in order to eliminate your overall cash advance burden within a six to 12 month time frame.
A competent debt resolution company can offer you the opportunity to actually find PDL relief quickly and affordably, usually at a much reduced rate over what you would owe if you continued trying to pay off your loans on your own. In the end it is a much better solution.
So, even though the economy has taken a hard turn for many people, there are still some businesses out there that are hanging on. And if you find yourself needing help and relief, know there is help at the click of a mouse.
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