Most people have heard about payday loans, and a large majority of those people have also heard that payday loans are expensive, and have been advised against utilizing them. Kansas residents currently borrow payday loans from over 500 stores and thousands of cash advance websites. You may be wondering how these loans maintain their popularity when so many accounts and regulatory agencies forewarn of the potential for financial disaster. The truth may be found in a recent newspaper article that analyzed the real benefit of payday loans that are often misunderstood.
A study cited in a Kansas City Star article found that in states where payday loans have been legally prohibited, consumers actually have worse credit. One general observation to make from these results is that crippling financial crisis may potentially be averted with the use of payday loans. People with good or excellent credit rely on credit cards and bank loans, options that aren’t available to a large sector of people. People who need payday loans don’t always have perfect credit or collateral, and therefore, they may occasionally turn to payday loan services for help when times are tough. Clearly, cash advances have proven advantageous in times of need. Payday lending does more than help an individual on a rainy day, it helps keep people, like Kansas residents, from becoming delinquent on bills and ruining their financial future.