29 Nov
2009

Why does the mainstream media blast Payday Loans?

There are many reasons why commercial media blasts payday loans; We will list a few of the main reasons here – the most important one: Payday Lenders typically do not advertise with mainstream media.

Follow the money, and you will find the truth.

Have you ever noticed that very harmful credit products like credit cards, fixed rate home mortgages, and super high banking and late fees are almost never attacked in the media?

It may have something to do with the billions of dollars the providers of these products spend each year marketing though traditional mainstream media.

The truth is taking out almost any consumer financial product is like going to Las Vegas. THE HOUSE ALWAYS WINS IN THE END.

The financial system makes a huge profits on the backs of middle class consumers paying usury rates every month to credit card companies, Mortgage Lenders, Banks, finance companies and payday loan providers.

We always advise consumers to borrow with care. If you need a payday loan to handle some emergencies or a mortgage loan to buy a house, great. But, think about saving a little bit of money, or increasing your income if you can. Maybe go back to school and get some new training. Increasing your income is always better than borrowing more money.

The Mainstream media loves to attack payday loans because they need somebody to go after. They cannot attack: fast food companies, Wal-Mart, Credit Cards, Fixed Rate Mortgages, or other producers of harmful products and systems because THEY SPEND WAY TOO MUCH MONEY !!!

In a capitalist system – there needs to be a profit motive to motivate  companies to provide services to the public. The same is true for payday loans.

At Money Now, we were once a payday loan lender. Though this experience we found that nearly 60 of our borrowers DEFAULTED on their loans. In fact we shut our lending services off because we lost money EVEN AT 500% APR !!

So if you are a member of the mainstream media, please think twice about attacking a loan product that half of it’s consumers never pay back!

What would happen if only half the people in the US made their mortgage payments each month?

You guessed it, the rates would have to be much higher then the 225% APR first year at 7.5%