Startling New Report – Points to Americans Using Payday Loans Just to Live

What is meant to be the ultimate last resort, no credit check payday loans, has turned into a way to survive for many Americans. Actually, this is not contained to the U.S., as all across the globe there are struggling families using these three or four digit Annual Percentage Rate (APR) loans for daily living.

People are faced with taking out several of these loans annually or live without food, water, electricity, gas, vehicle payments, insurance payments, and other living necessities. This report also shows that individuals with a yearly income of $100,000 dollars and over are also taking out no credit check payday loans.

Out of all the loans acquired throughout the year, at least seven of every ten are no credit check payday loans. This figure is staggering for consumer advocacy groups. This is because they know the devastating effects these loans have on the people who get them. Many times the individual will take about eight payday loans a year. Each loan carries high charges and APR leading him or her to pay out more than $500 dollars in interest and fees each year.

Industry watchers and financial analysts believe this spike in no credit check payday loans is due to the housing costs, energy costs, unemployment, and other economic pressures, which are all on the rise again. When people cannot pay their bills and feed their families, they turn to these payday loans due to the relative ease of obtaining them.

However, once they enter into the no credit check payday loan realm, most are stuck there for a long time until he or she can finally manage to pay off the loan or default. Then, once they have defaulted, he or she will be harassed by creditors and have it reported on their credit. Unless they took out a loan where the lender auto-deposits a personal check or debits their banking account. This usually leads to a ton of issues, including NSF fees, bad check arrest warrants in some states, and more negative reports on his or her credit.

No credit check payday loans will continue to be on the rise as long as stronger laws and regulations don’t exist to protect the borrowers. These predatory lenders package the loans as a means of taking care of emergencies, but hand them out left and right even if the customer cannot afford to pay it back.

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