As more statistics are gathered regarding payday loans and payday advance providers, we learn more about the realities of these short-term products and fortunately for policy makers have to rely less on the anecdotal experiences repeated ad nauseum by biased consumer activist groups. In the attached report, researchers at Clemson University reveal data that suggests that legality of payday loans in a state does not increase bankruptcy percentages amongst state residents. For years leftists consumer group such as the Center for Responsible Lending, the Coalition of Religious Communities, ACORN and the Consumer Federation of America have falsely repeated time and again that allowing consumers to utilize payday loans increases the probability of bankruptcy amongst consumers. The Clemson Study debunks this myth. Those interested in ready a synopsis of the study can view it here or the full study here.
Policy makers looking to take action against these short-term payday advance loans should carefully review pertinent payday loan studies before making rash decisions at the behest of consumer groups. The findings of the Clemson study is simply another example of how the fact surrounding payday loans reveal how useful a financial tool it can be for those looking at short-term financial needs.
Friday, 23. January 2009
I agree that payday loans do not lead to bankruptcy. Payday loans on average are around $200. Why would someone file bankruptcy for a $200 loan?
Its credit cards that are the problem.
Wednesday, 28. January 2009
Thanks for the comment earlier. How’s your site doing? Sorry I didn’t see your comment until just now, but kind of ignored it for a while. How are you finding payday loans as a topic? Hope it’s going well…
Cheers,
Brandon
Wednesday, 4. February 2009
I think individuals should have the right to handle their own finances as they see fit. In case of an emergency or for those that don’t have good credit and need a loan fast, these loans are a great way to get the cash you need. If the services are used as intended, which is short-term, they can be a great benefit and the fees are quite reasonable.
Thursday, 19. February 2009
payday loans do not lead to bankruptcy unless you use the service irresponsably. that will get you in trouble.
Monday, 23. February 2009
Just came back to this again and wanted to say that I agree with this study 100%.
Thursday, 14. May 2009
Well said number 1. Credit cards are the problem coupled with irresponsible consumer behavior. That’s part of the reason our economy is the way it is right now. And like the end of the post said, payday loans can be a useful tool for those that are in need of short-term financial help. I’m glad this study came out.
Thursday, 28. May 2009
I agree 100% with the study. I don’t see how payday loans would increase bankruptcy. It’s true, I’m sure that people that do payday loans have filed for bankruptcy, but that doesn’t mean that the bankruptcy was caused by the payday loans. Payday loans can be a very useful tool if they are used correctly (short term). I think credit card debt is a more appropiate cause of bankruptcy.
Wednesday, 3. June 2009
great blog thanks for sharing.