According to statistics, there are about 12 million adults in the United States each year who take out at least one payday installment loan. In fact, an average consumer can take out at least eight payday installment loans throughout the course of a year. The average loan amounts are estimated to be around $375 with an average of $520 in the interest, if paid on time. With these figures, you can see how borrowing from payday installment loans is becoming a lifestyle for many Americans who treat debt as part of their way of living.
However, payday installment loans are the most suitable solution for instant cash needs. With these loans, you get the cash you need within 24 hours after your application is approved. The simple and easy application process has been the driving force of people who patronize these short term loans. As a result, instead of using payday installment loans for an emergency, many consumers utilize these loans for coping up with their daily living expenses.
This is why borrowing from payday installment loan lenders is seen by experts as becoming a lifestyle of the average American. Many people end up paying for loans throughout their lives and become dependent on these loans for their daily living needs so they take out the loan for more than just a few weeks. In fact, the average time for a payday installment loan to be paid in full is five months.
Where do people use payday installment loans? Generally, the average consumer takes out a loan to keep up with daily living expenses. They are not used for unexpected emergencies. Dependence on these short term loans is a result of living beyond one’s means. Until people learn to cut back on their expenses, they will continue putting themselves in debt.
Another reason borrowing is becoming a lifestyle of many people is because of indebtedness. The only solution that people can turn to is to pay off a debt with another debt. The scary fact about this way of living is you never get out of debt. Unless people learn how to save, becoming debt free will not be easy.
The lifestyle of borrowing and depending on payday installment loans has caught the attention of the federal government. Representatives feel something must be done to regulate the dependence of people on these loans. The government has issued legislation to protect consumers from becoming trapped in a debt cycle that makes payday installment loan borrowing their lifestyle. Almost all people struggle with finances, but payday installment loans are not always the best solution.
Payday installment loans are designed to provide for urgent and unexpected financial needs. Dependence on these loans should not be a lifestyle.