Payday Loans and the Poor Economy

In this economy it seems worrying that creditors find ways to shake extra money from consumers. In January I received a call from one of my credit card companies. I was in good standing with this company for several years, but that didn’t seem to matter. The customer service representative on the other end of the call informed me that they raised my APR. The only reason given was that it was caused by the unfortunate state of the economy. This prompted me to think about how this circumstance could affect someone living on a tighter budget than me.

Why, in this dwindling economy when someone like me struggles more than usual, do wealthy credit companies need unnecessarily large APR’s to increase profits? What if an increased APR forced me to choose between a credit card payment and becoming late on the rent? What if I were struggling to buy groceries this month? These might seem like extreme examples, but there are people living on tight budgets whose lives would be significantly affected by such a disturbance.

What can you do?

If you have a decent reputation and are willing to wait several days or several weeks for approval, you can try to apply for a loan from a bank. Maybe you want to open another credit card, but the poor economy makes it difficult if not impossible for anyone to get credit approval. You can borrow money from a friend or family member, but that’s an embarrassment most people choose to avoid. Even though your situation might feel hopeless at times, there is an answer that is fast, efficient and not humiliating.

A rapid and viable option for someone with less than perfect credit, and who might be in a financial pinch, is an online cash advance payday loan. Perhaps you've heard some negative reviews or stories about this kind of loan, but the truth is they can be a lifesaver in big situations, if you can and will pay back quickly in accordance with the agreed limits. Finance fees related to a payday loan might be lower than the accrued late fees associate with high APR’s, and can you avoid negative marks on your credit report. In addition, applying for online cash advance loans you should not worry about traditional credit checks, which may also negatively impact your credit report. For these reasons and because they are fast (the money is often electronically deposited into your account the same day) payday loans can be a very useful solution to your financial woes.