The credit crisis of 2008 has left one industry stronger than ever. The payday loan industry, which used to be marginalized, is now growing faster than ever. Families who struggle to get loans are forced to head for payday lenders who have reaped the rewards of the economic downturn. In fact, the payday loan industry has increased five-fold in the past few years due largely to the increased demand.
Payday Loan Debt Bubble
As cheap credit in other industries was disrupted by the 2008 financial collapse, the payday loan industry has exploded. Many people who cannot get a second mortgage for their house are now looking into alternative options. The pawning industry has had similar success as is the payday loan industry. It is only a matter of time before another bubble of payday loan debt is formed. Many government agencies are already watching over the industry closely. They are more vigilant than ever, given the most recent debt crisis.
Unfortunately, the debate about payday loan debt is already in the lenders’ favor. They have far more money to lobby congress compared to their poor clientele. The other argument that lenders are using is far more sinister and hard to contest. Many claim that an attack on payday loans is an attack on American capitalism in general. For many Americans (many of which are not in payday loan debt), this is something they are cautious of.
Nonetheless, the payday loan debt bubble is increasing rapidly. Those who defaulted on home and car loans in the past are now borrowing with payday loans. This is asking for another loan crisis to occur.
Fighting the Bubble with Payday Loan Consolidation
The only way for common Americans to fight the payday loan debt bubble is to consolidate loans and remain debt-free indefinitely. This can be a difficult task, but it is a necessary one. America could once again be plunged into economic turmoil if payday loans are not paid off promptly. The amount of debt owed is obviously far less than in other industries, but it is still enough to damage an already fragile industry.
Contact us for payday loan consolidation so we can help you and America. This is America’s time of need, and your country needs you to clear your debt sheet and live freely again!
