With President Barack Obama being reelected at the helm of affairs in the US, there is now a lot of hope that the financial crisis having loomed large over the United States for a rather long time now, will finally wither away, even if gradually.
Specific to payday loans, there is hope that the administration will stop frowning upon them, as it seems to have in the recent past.
Otherwise, today it is a rather sad state of affairs where we find that the administration in general has been resorting to what can easily be referred to as “payday loan bashing”.
This is not how things should be. After all, when it comes to the poverty stricken or the marginal sections of our society, we find that for a lot of them, there is simply no option other than to go in for payday loans.
Therefore, by doing away with these loans, the administration is effectively doing away with an easy means of quick credit or cash advance for such a vast section of the population.
Through this article, we would like to raise awareness about the fact that by no means are payday loans an “evil” component of society. No one is in anyway being compelled or forced to go in for these loans in the first place. Things are entirely optional and it is up to the concerned individuals to go in for these loans or to avoid them, based on circumstances.
Agreed that the interest rate on payday loans is astronomically high but one has to factor in the high element of risk which these lenders are obviously taking up; to offset any defaults, these lenders typically resort to higher interest rates.
So taking all of these factors into consideration, we would in some ways hope to see the administration not discourage payday loans. For many borrowers, payday loans are like a lifeline of sorts for credit, when all other sources have completely dried up.
At our end, we simply feel that everyone in society, no matter the extent to which they may be marginalized, has the right to live a life of dignity and payday loans in many ways offer exactly that, so why should they be denied of the same?