Even with a down credit sector, consumer debt levels make a cash advance financial debt trap seem like small potatoes. The payday lending industry as a whole lends less than $50 billion a year to its customers. There is 20 times that amount in outstanding debt on charge cards. Mainstream debt is encouraged and seen as a benefit, which makes it more of a trap than any payday advance loan ever could possibly be.
$11 trillion debt trap is not from pay day loan
Mortgage lenders were said to be the biggest cause of the debt trap as outlined by fortune. $10.6 trillion is debt from mortgages alone. For years and years you are meant to pay on a mortgage and credit card. There is over $822 billion in debt from credit cards. To come up with the $1.6 trillion in debt left you’ve to add student loans, automotive loans and installment loan. Even more astounding is that these figures are a reduction from previous years.
Pay day loans aren't even playing the exact same game
The credit card industry is far larger than the payday cash advance loan industry. In fact it is 20 times larger. The total amount of all pay day loan lent out in a year is still under $50 billion. Profit made by payday lenders is on average around 10% a year, which is much less than most lending industries. Given the information above, payroll loans aren’t the monster you tend to be lead to believe they’re.
Not as big as you would think
If you did your homework you would know that a payday loan is really different than a credit card and other forms of borrowing. Payday lenders lack the funds to do mass marketing like other credit industries. To learn more for yourself, simply visit the Payday Loan Facts and Statistics Report on Personal Money Store.
Citations
Finance Fortune
finance.fortune.cnn.com/2010/11/10/consumer-debts-wont-return-anytime-soon/
No comments:
Post a Comment