Be careful with payday loans
I understand that payday loans are very popular in some states. I also heard that they are not legal in other states! That surprised me to hear that they are prohibited in some states. I was searching on the Internet to find out if they are legal in the state that I live in, and they are, but they are illegal in most of the NorthEastern States. I have to wonder why that is the case! And I wonder if that is a trend that is going to continue, making them illegal. I know that some law-makers are very concerned that some of the companies that run that kind of loan are predators and that the loans are designed to never let the debtor pay off the loan!
There has been a lot of news stories on the local television stations about how some companies have been sued over their predatory practices, and changes have been ordered. I don’t know if the changes have actually been made or not! I still see a lot of television commercials for that kind of loan. I think that this kind of short term loan is ok if the debtor is in the position to pay it off with their next paycheck; but if they are not able to pay it off quickly then they need to carefully review their options because these types of loans are very high interest loans.