It is a normal situation when a person can’t make it till the next paycheck and has to apply for a payday loan, there are a lot of people who actually live this way on a regular basis and most of them would agree that such life is really full of stress.
The recent statistics also shows that about 69% of payday loan customers covered their regular bills with the help of payday loans and 16% of them only use such loans in cases of emergency (that they are actually supposed for). However, despite the fact that payday loans come in handy in avoiding immediate financial problems, they can create other that are connected with the repayment. It is also quite frequent as the interest rates for such loans are relatively high; at least they are always higher than the ones for regular bank loans.
One of the consequences of such lending and inability to repay in time is that people have to roll-over their loans, which results in the accumulation of the debt. Many people with payday loan experience are wary about using these loans again; however, others say that the right approach is the key to such borrowing and that payday loans can be deadly useful, if you know how to handle them.
Payday lending has been a topic of many heated discussions in the states recently, especially those states where the legislation is either hybrid or restrictive; there are states that prohibit such form of lending, so they are done with the problem.
In Utah, for instance, the new law is in the process of making and it presupposes a 60-day break after 10 weeks of repayment limit: that is exactly how long lenders will have to wait before taking any action against the borrowers, provided that the law makes its way through. This is yet another attempt of the state to protect their customers and provide them with better sense of security.
In accordance with the law in question a lender will have to sue a borrower in the city of the latter and not make one to come to a lender’s city. Certain alternations are surely to be expected to be made with regards to extension opportunities and etc.
It is only natural that this bill is expected to pass without really much opposition; though, it restricts the options of lenders to a considerable degree and will probably decrease the popularity of these loans. It is at the present moment is taken into consideration in the state of Utah; however, there is a good chance that other states will follow the example.