Thursday, February 5, 2009

Recession Sends Customers to Payday Loan Stores, Pawnshops

Short-term loans help in credit crunch

A payday loan is ideal for people whose credit just isn’t good enough anymore. During a time when qualifying for a loan or credit card is harder than before, many people are getting creative when they need extra cash.

Many pawnshops also offer short-term loans — or payday loans. People are starting to realize that in some situations, this is their best option.

Cash America gets creative

Realizing that more people are in need of their services, payday loan stores are starting to get creative, too. Cash America started a mail-in gold campaign for customers, so they can get extra cash for old jewelry they aren’t using without going to the store. The company has also expanded its online payday loan division so more people can take advantage of the convenient feature.

Government intervention

Of course, with payday loans getting all this attention, the government just can’t help but get involved. It’s understandable that people in the White House are nervous about financing. After all, if they’d placed more regulations on mortgage loans before, maybe we wouldn’t be in a recession right now.

However, it seems unfair that while the government is paying hundreds of billions of dollars to help regular banks, it seems to be trying to drive payday loan stores out of business. ... click here to read the rest of the article titled "Recession Sends Customers to Payday Loan Stores, Pawnshops"

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