The numbers do not lie, and after reading them one can only shake their head and wonder why this country is willing to let payday loan fees and interest net $1 billion from out poor!
The sad fact is these companies prey on low income and disadvantaged people, many times placing their stores in these disadvantaged areas on purpose to specifically draw in their business.
While some say payday loan companies create jobs and add money to the economy, and in reality they do, looking at the numbers from 2011 tell a tale of lost opportunity for many Americans.
The numbers speak out!
the Insight Center for Community Economic Development has been studying payday loans and their effects on the economy for quite a while, and their numbers from 2011 are an eye opener.
According to their results, the payday loan companies took in $3.3 billion for the year 2011. Now, taking that figure and comparing it to consumers having that 3.3 billion for discretionary spending, that money would have created 79,000 jobs and created $6.34 billion in economic activity.
As it is the payday loan companies created 65,000 jobs and resulted in $5.56 billion in economic activity.
The end result is that payday loans created a net loss of $.78 billion in economic growth, 14,000 plus jobs lost, and $169 million went to chapter 13 bankruptcies The only winners here are the companies themselves.
These results speak for themselves. Not only do these loans hurt the people taking them out, they also hurt the rest of the economy and community.
The best way to deal with these loans is to not deal with them at all. They are legal loan sharks, and it is best to avoid them completely.