In today's tough economy where a lot
of people are in need of financial assistance and too many predators take
advantage of their desperation, it is nice to know there are businesses that
can offer assistance.
Payday loans have become a $40
billion industry where over 23,000 lenders trying to foster the idea that they
are helping out cash-strapped borrowers by offering a payday cash loan when in
fact the help really comes from people like Ryan Phillips of Relief, LLC, debt
solution and loans consolidation specialists who know the ins and outs of
settlement laws and negotiations and work with lenders on behalf of borrowers
to stop harassing phone calls and get a fair and equitable settlement.
I caught up with Ryan at his offices
in Sherman Oaks, a suburb of Los Angeles, and here's what he had to say about
payday cash loans and Relief, LLC.
DH: What is a payday cash loan?
RP: Payday Cash Loans are basically short-term, high interest
loans. They are usually obtained from either a walk-in storefront or from a
company on the internet. Most people get these high interest loans when they
need help tiding them over to their next payday.
DH: Aren't they a good thing in
today's economy?
RP: This is a difficult question. I believe there is a
legitimate use for payday cash loans if used responsibly. For example, if
someone needs money to temporarily hold them over until their next payday and
they are 100 percent sure they will pay the loan in full at that time, using
this service would be less expensive than bouncing a check or an automated
payment.
However, too often when the paycheck
comes, people would rather pay only the interest and keep the rest of the
money. Before they know it, weeks, even months have gone by and all they've
paid is interest payment after interest payment. The problem is that payday
lenders bank on the fact that most people won't pay the loan off quickly. I
think this plus the lack of regulation in the industry, especially with
internet lenders, means that people are often given loans they should not be
given.
We see clients that have 15 or 20
payday cash loans totaling over $10,000. We see people who spend almost their
entire paycheck just on interest fees to payday lenders. Obviously this can
only go on for so long before the person needs to declare bankruptcy. So
without some type of regulation to ensure that people do not get in over their
heads then this type of behavior by payday lenders will likely continue to
contribute to the current crisis of giving out too much credit.
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