Payday loans have had a bad name in the press, but new research confirms what industry insiders already know: payday loans actually offer freedom of choice in managing a household budget and without them, borrowers end up using less desirable alternatives for getting cash.
Online PR News – 26-October-2009 – – Contrary to what the press may have us think, payday loans help people rather than hurt their finances. X9a.biz payday loans and the people behind them would like you to know the facts about this issue. There is a broad and powerful coalition working against the sector of the financial industry which offers payday loans to consumers. It includes people ranging from anti-poverty activists to the President of the United States, Barack Obama. They claim that payday loans exploit poor people by offering loans with bad terms to people who can't seem to refuse them, whether it's out of desparation or not knowing any better. The government has even gone as far as banning payday loans to members of the military and their families, saying these loans affect "military readiness"! Now President Obama wants to ban payday loans to all citizens, at a federal level.
X9a.biz, which offers payday loans, has always been more than just a website offering payday loans at good terms with friendly service. We're also watchdogs on the industry and here to report that there's new research on the topic of payday loans and whether they help or hurt borrowers. New studies show that households barred from taking out payday loans wind up using far less desirable methods to cover their expenses. One study involved households in Oregon, and was conducted by a Dartmouth economist.
The Oregon study involved a rate cap, which the state legislature had set at $10 per $100 borrowed and a minimum borrowing term of 31 days. A year after the limits were imposed, the number of outlets offering payday loans dropped from 346 to 82. The study concluded that Oregon residents were using less desirable methods such as utility shutoffs and overdrafts. The paper concluded that restricting access to payday loans resulted in overall deterioration of overall financial condition of households in the State of Oregon.
People who live in states that ban payday loans bounce more checks. They also have more comoplaints to the FTC about debt collectors hounding them, and they also file for bankruptcy protection at a higher rate. And this is data given by Federal Reserve research economists.
These findings are completely opposite of what critics of payday loans claim: that payday loans result in a debt trap for borrowers. X9a.biz has been offering payday loans to satisfied borrowers for years, and we're happy to report that finally the American public is taking a good look at this financial product and realizing the benefits payday loans can bring to household across the country.
To find out more about our payday loans, visit http://www.x9a.biz/payday-loans.php. Our terms are clear and easy to understand and you can call our friendly customer service staff at any time.