Recent data about consumer debt loads suggests that a payday loan financial debt trap could be better for an individual than mainstream debt. The sum total of all loans from payday lending firms lent per year is under $50 billion. The sum total of all debt owed on charge cards in the United States of America, for instance, is over 20 times that much. Mainstream financial debt is encouraged and seen as the advantage, which makes it more of a trap than any payday cash advance loan ever could possibly be.
$11 trillion in debt and it's not as a result of payday loans
Mortgage lenders were said to be the biggest cause of the debt trap according to fortune. $10.6 trillion is debt from mortgages alone. Both credit cards and mortgages have one thing in common, they’re meant to keep people paying to them for long periods of time. There is over $822 billion in debt from credit cards. Aside from mortgage loans and credit cards, installment loans debt, or debt from student loans, auto car loans, and so forth, totals $1.6 trillion. Even more astounding is that these figures are a reduction from previous years.
Even if a payday lender tried to compete… they couldn't
The credit card industry is far larger than the pay day loan industry. In fact it is 20 times larger. The sum total of the all cash advances and payday loans lent out is less than $50 billion per year. Profit made by payday lenders is on average around 10% a year, which is much less than most lending industries. Pay day loans are actually a convenient and efficient choice for lending despite what people lead you to believe.
Not that big in comparison
Payday loans are such a small portion of the overall credit market, that seems like ridiculous to single them out compared to other sources of debt. However, payday lenders don’t have the benefit of multi-billion dollar ad campaigns. You can read more in the Payday Loan Facts and Statistics Report on Personal Money Store The Payday Loan Facts and Statistics Report on Personal Money Store can give you more details.
Info from
Finance Fortune
finance.fortune.cnn.com/2010/11/10/consumer-debts-wont-return-anytime-soon/
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