Payday Loans: 50 Billion Dollar Business?
Payday loans, also known as a cash advance, are a very large business in the United States. These short term loans often are under a lot of scrutiny from lenders and government agencies. However, it is hard to ignore the fact that I read that the payday loan industry is potentially lending 50 billion dollars.
These short-term loans are being taken out by people who need cash and possibly their bank, credit union or credit cards are not an option. As I have pointed out before, the average person taking out a payday loan is not what it used to be, or what people generally think of as a “typical” customer. According to Indystar.com, “the average household income for Advance America customer has risen to $43,000, with 90 percent holding at least high school diplomas and half with some college. About half have credit cards.” Indystar.com also goes on to point out that nationally, the number of payday outlets has gone from zero in 1990 to about 25,000 today. However, many choose the convenience of searching online for their short term loan, and then get matched up with companies like Leadpile Lead Exchange to then connect them to that needed payday lender. The fact that this industry is potentially a 50 billion dollar industry, points out that there is definitely a need for these short term loans.
There is a need for short-term loans, especially since this economy is limiting traditional lending options. For more information on a payday loan, visit http://www.checkngo.com.
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