4 options to payday lending.Banks, credit unions offer alternatives for tapping fast cash. Credit counselors can rearrange funds to take back cash.

4 options to payday lending.Banks, credit unions offer alternatives for tapping fast cash. Credit counselors can rearrange funds to take back cash.

Webmaster Note: Michael Rowett functions as the Chairman of Arkansans Against Abusive Payday Lending (AAAPL) on the behalf of Southern Good Faith Fund, a joint venture partner of Southern Bancorp.

Shows payday advances often create more issues than they solve.

The recession drags on, and numerous consumers dealing with monetary emergencies are seeking fast money. For decades, payday lending — by which borrowers get little loans to tide them over before the next payday — was a popular choice.

Presently, there are about 22,000 storefront pay day loan shops nationwide, in line with the customer Federation of America in Washington, D.C. an average of, the industry makes $40 billion in loans and gathers $6 billion in finance costs from borrowers every year.

But taking right out a payday loan is not always a good economic move for the debtor.

“A cash advance does not solve a financial crisis; it generates one,” claims Uriah King, senior policy associate in the Center for Responsible Lending in Durham, N.C. “The typical payday debtor concludes up in a debt trap since they need to return and acquire another cash advance to assist repay the very first one, then another, then another.”

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