Friday, February 6, 2009

Consumers with Bad Credit Turn to Payday Loans

Payday loans a reliable source for cash

People dont trust big banks like they used to.
People do not trust big banks like they used to.

During this bad credit crunch, payday loans are becoming more common as other forms of consumer borrowing are falling. It appears that borrowers are getting wise about their options and avoiding turning to shaky financial institutions.

Consumer credit going down

Consumer borrowing has fallen for the third month in a row. This is partially due to the banks being less willing to lend. It is also because consumers are less willing to borrow. Consumers borrowed $6.6 billion less in December than they did in November.

But more people in more income brackets are using payday loans.

Good news for people with bad credit

One explanation for the increase in borrowing payday loans is bad credit. Many people who were sucked into the mortgage crisis now have black marks on their credit reports because of late payments. But because payday lenders generally don’t do credit checks, even people with poor credit histories can get much-needed help in financial emergencies. ... click here to read the rest of the article titled "Consumers with Bad Credit Turn to Payday Loans"

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