“Direct Lenders Provide Short Term Loans for Borrowers with Poor Credit”. (PRNewsFoto/Cash Advance USA Ltd)
NORFOLK, Va., Nov. 29, 2013 /PRNewswire-iReach/ — In her latest article on Business Insider, Mandi Woodruff pinpoints the frustration that many Americans feel as they struggle with economic conditions they can’t seem to control. She cites Helaine Olen’s book “Pound Foolish: Exposing the Dark Side of the Personal Finance Industry” in diagnosing the broad economic forces that have brought us to this point.
(Photo: http://photos.prnewswire.com/prnh/20131129/MN25297)
In her book, Olen describes the hard to reduce “fixed costs” that are the cause of many of the economic woes. Healthcare, housing, and education costs have grown to eat up 75% of discretionary incomes. In 1973, these cost were just 50% of discretionary income. Even though housing prices have fallen during the 2000s, healthcare insurance costs have increased by 100 percent. During that time, the cost of raising a child also shot up 40 percent according to Woodruff.
Plus, and this is the kicker, the median income of families has dropped 14% from $63,900 to $53,900 for 35 to 44-year-olds and $66,800 to $61,000 for ages 45 to 54 according to Olen. No wonder many struggle to make ends meet and to take care of all their financial obligations. And what happens to these people when they come up short and pay a bill late? Their credit scores drop as well. All these factors added together can lead to the perfect storm of a full-blown personal financial crisis.
During these tough times many turn to direct lenders, not because they want to, but because they have to. They know they will pay more for their loans, but it beats the alternative, which in this case can be expensive overdraft fees, late fees, disconnection fees, or worse. So even though some criticize direct lenders, the lenders meet a legitimate need in this day and age as consumers dig themselves out from under overwhelming healthcare and education costs, child-rearing costs and bad credit scores.
“Borrowing does not solve the problem,” states Cashdadvanceusa.net CEO, Mark Miller, “but it does buy borrowers some time to work out a long-term solution. The cost of living is more expensive for those in financial distress. If you have low credit scores you pay more for everything: car loans, utility deposits, late fees, insurance, etc.”
“When bad credit borrowers consider a short-term loan from a direct lender, they do not compare the rates and costs to a bank loan which they can’t qualify for,” he continued. “They compare it to the alternative, which in their case might be a repossessed car, disconnected utilities, or overdraft fees. So in the short-term they save money, even though it is not a perfect solution.”
Direct lenders who extend credit to credit-challenged borrowers continue to improve their products and services as well http://www.cashadvanceusa.net/online.html . Many realize that one pay period is too fast to expect payment on the full-amount of a bad credit loan. To solve this problem, the lenders have added installment payment options to the loans. This means borrows have smaller payments over a longer period of time.
“We are not a direct lender” says Miller. “We help borrowers find lenders that will provide bad credit loans. Instead of doing all the research themselves, borrowers can go to our site, fill out a brief, secure application and get in front of hundreds of lenders. Then, they will likely receive multiple loan approvals via email. This allows them to read through the offers, terms and conditions carefully to select the best loan for their situation.”
To learn more, go to http://www.cashadvanceusa.net/ or to read the rest of Woodruff’s article, visit http://www.businessinsider.com/fixed-costs-drive-americans-to-poverty-2013-11.
Media Contact: Mark Miller, Cash Advance USA Ltd, (512) 571-3828, info@cashadvanceusa.net
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SOURCE Cash Advance USA Ltd
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