Payday Loans: The Big Debate

Drive through any major city and you can quickly see that payday loan and check cashing stores are becoming as frequent as Starbucks in New York City, but as every new lender opens its doors the controversy and debate over their place in our society increases. As with most debates ‚ political or otherwise ‚ it is best to gather all the facts before making any decisions.
For those who oppose the payday loan industry, their argument is clear. While consumers may look at payday loans and only see the signs for ‚ “no credit check required” ‚  they warn it does come at a price. Payday loans are only gained through high interest rates, sometimes more than 500%. Many believe that payday loans are paving the road to bankruptcy for those in low or fixed income situations. Many states are also trying to pass laws that would increase regulations on the payday loan industry.
On the other hand, there are many who strongly support the payday loan industry. Money Mutual Montel Williams have teamed up to help promote the benefits of payday loans, especially during this economically trying time. Supporters continue to express that payday loans are not meant to be long term. They were created to help in a sudden, unexpected emergency when fast cash is needed in order to avoid incurring NSF fees or bouncing checks. For most people they will be a one-time deal. For more information about how the payday loan industry works you can visit the Money Mutual site at They have a Q&A section that can answer many of the questions you may have.
This is only the tip of the iceberg when it comes to the payday loan debate and, as with most debates, it is rarely cut-and-dry; however, if we keep an open mind and do our best to find the facts perhaps supporters of both sides can better understand the other. And with understand we can reach a  compromise that will bring this debate to an end.

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