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Payday Loan Relief Companies Post Covid

To talk about how payday loan companies are doing today, and what the payday loan landscape looks like, we need to go back to the beginning of the pandemic. Many people thought the payday loan industry would go through another huge spurt of growth, given that so many were either out of work or couldn’t work. why is it essential to consolidate your payday loans today

It just didn’t happen that way. There was one thing that wasn’t figured into this equation. Free government money! Nobody thought for a moment checks for a minimum of $1,200 would go out twice. And keep in mind the unemployment checks were going out on a regular basis too.

During the worst part of the pandemic almost all the states made it easier for most households to obtain loans that were more conventional, and cost much less than the old-fashioned payday loan. In addition, the Small Business Administration started their paycheck protection program and helped many businesses stay afloat. This in turn changed the way payday loan companies were thinking. They didn’t get the big jump in business they thought they would. In addition, with Federal relief and child tax credits being available, much of the need for taking out high interest payday loans was removed. Furthermore, there were more defaults on payday loans than usual. Payday loan defaults were up 17% in 2020. Predatory lending demographics

Given payday loans are already a risky proposition for the lender, the17% default rate put another monkey wrench into the payday loan machine. Of course, payday loan providers were still making money and lots of it. Many payday loans carry an average APR of 400 to 500%. With fees tacked onto the interest rates payday loan lenders were not hurting and as a matter of fact more than likely never felt the 17% loss of revenue which resulted directly from lockdowns and closed businesses. Payday loans are illegal in 18 states. 32 states still allow access.

But even those numbers are skewed. Throughout the years, many payday loan companies have partnered up with native American tribes and are hiding behind the curtain of sovereign, indigenous people’s land. Internet advertising is a doorway into States that have outlawed payday lending. Once the door is open payday lenders associated with native American tribes can flaunt the law with impunity. Consequently, we can assume with much accuracy that payday lenders work in all 50 states. Extrapolating on that thought makes it crystal clear that payday loan companies were working in all 50 states during the pandemic.

 

payday loan consolidation for you when you need itThat doesn’t negate the fact that payday revenue was down 17% across the board. This number came from a survey of Payday loan companies and have no source of verification. The Washington Post reports that over $500 million in federal relief money granted during the pandemic went to debt collectors working for payday loan companies. Small business collection agencies. Alot of that debt was more than likely incurred before people were put out of work. All these facts and figures are interesting because most people think that payday lending is a niche market, consequently not affecting them. That’s not the case when 500 million dollars of government funds are being snatched up by these companies. Here’s the kicker. More than 1800 small business loans were given to debt collectors and high interest lenders, AKA payday loan companies with the aid to these businesses topping off at more than 580 million dollars. Taking the 500 million dollars in collection, and adding it to the almost 600 million that was given to the collection agencies is the Stark reality people need to understand. Payday loans affect all of us All of the above begets the final question. What is going on today in the payday loan industry? In my opinion it’s the same old same old. We live in a time where certain things just can’t be stopped. With the advent of online advertising, and the universal access people have to the internet payday loans will be a permanent part our society for the long and distant foreseeable future. As a PostScript to all of this, payday loans were initially conceived to help people who had an unexpected expense, or situation that that was difficult. Payday loans in their original form were good.

The reality is that like most things profitable they were oversold to the wrong people consequently bastardizing the original concept. Even in the form they take today, used properly by the consumer with tiny little bit of altruism, and honesty from the issuers, payday loans can still help people. Unfortunately, business doesn’t work that way. Hence the bottom line. Payday loan companies continue to flourish, making those who run them very rich. They have during the pandemic, and they have before the pandemic. One day payday loans might end up being the world’s second oldest profession.

 

Federated Financial Wants You To Be In Charge Of Your Money

Most payday companies won’t advertise that their loans come with interest rates that will cost more than the loan itself. ConsumersDebt Weight are paying a hefty price for a quick cash injection but the underlying costs are usually too much for anyone to bear.

When you contact Federated Financial, they will make the effort to help you take control of your financial situation. Not only will they make your debt manageable so you can get it paid off, but they will also make sure you understand every step along the way. This way, you will stay in control of your money. If you’re tired of handing the majority of your paycheck over to lending companies, then it’s time you take control. Give Federated Financial a call to find out where to start.

 

By |2022-03-15T12:26:03+00:00March 15th, 2022|Categories: Current Events, Payday Loan Consolidation|Tags: , , |Comments Off on Payday Loan Relief Companies Post Covid

What Does Federated Financial Do?

 

Find Out Why This Financial Company Has Everyone Talking

 

Federated Financial is one of the top financial relief companies in the US. You may have heard your friends talking about them, and they definitely have a good reason for it. Federated Financial specializes in debt consolidation and has been why is it essential to consolidate your payday loans todayhelping many people across the US find realistic ways to get rid of their debt.

Did you know that over 12 million Americans have payday debt to their name right now? Every year payday loan companies make over $9 billion in interest rates alone. This money is all coming from people who went to them for help because they were financially stuck. If you are one of those people, you are not alone. Federated Financial is here to help you find a way out.

 

Why You Should Call Federated Financial 

The worst thing about payday loans and other types of debt that build up is that borrowers are often stuck with how they will pay the loans back. When they initially borrow the money, they believe that it’s a realistic amount that they can pay back. However, payday loans are known for having extremely high interest rates. Many payday loan companies will approve loans that have between 350% to 600%. 

A lot of people aren’t prepared for those interest rates when they initially borrow the money. This is often the tipping point that pushes the borrower into the vicious cycle where they will take out another loan to repay the first one, and it continues from there. Most borrowers simply can’t put an end to this cycle on their own unless they stumble across a bunch of money.

Since the chances of that happening are very slim, they need to find another way to stop the borrowing. This is wherePredatory lending demographics Federated Financial can come in to help.

 

What You Can Expect From Federated Financial

If you find yourself overwhelmed by debt, Federated Financial can help without adding to the pile. This company has a goal to help each consumer that reaches out to them by teaching how to better understand and manage their debt. They have helped many people take the steps and learn the fundamentals to a more secure financial future.

So, you may be wondering how they can help with your current situation. Federated Financial specializes in debt consolidation. This basically means that they will take all of your current debt and put it into one payment plan. Don’t let that scare you though, they will manage this payment plan so it’s affordable for you.

The biggest issue you are facing with getting your debt down is the interest rates. Whenever you make a payment to the lender, you are only paying down the interest. Federated Financial has many financial managers working behind the scenes. One of them will contact your lender(s) and negotiate with them to get you the lowest interest rate possible. This step alone can seriously change your debt situation. When that outrageous interest rate goes away, the debt becomes a lot more manageable.

 

payday loan consolidation for you when you need itGet Rid Of Stress And Interest Rates

Federated Financial can help you take a lot of stress off of your shoulders. It’s no secret that financial problems are one of the biggest causes of stress. Many people are very worried because they are late on their loan payments. The creditors keep calling them, yet they don’t have any money to get that loan paid off.

This is one thing you will no longer have to worry about when you contact Federated Financial. They will make sure there are no more late fees added to your bill and the companies will stop calling you. The harassment will finally come to an end and you will feel like you can breathe again when you think about your finances.

All efforts from the debt relief programs offered by Federated Financial are legal. When you contact them for help, you will not have to worry about what happens next. They will handle all communication with the lending companies. You will not have to worry about any legal matters or the possibility of having your wages garnished.

 

Federated Financial Wants You To Be In Charge Of Your Money

At Federated Financial, every financial manager understands the value of a dollar earned. Just because a person is financially stuck at one point in their life, doesn’t mean they need to be a victim of long-term debt. Most payday companies won’t advertise that their loans come with interest rates that will cost more than the loan itself. ConsumersDebt Weight think they’re getting help when really they are signing up to continue giving their money over to the lender.

When you take the next step and contact Federated Financial, they will make the effort to help you take control of your financial situation. Not only will they make your debt manageable so you can actually get it paid off, but they will also make sure you understand every step along the way. This way, you will stay in control of your money. 

If you’re tired of handing the majority of your paycheck over to lending companies, then it’s time you take control. Give Federated Financial a call to find out where to start.

 

Federated Financial Makes A Difference

When it’s time to call Federated Financial, they will get started on your case right away. A financial manager will discuss your current situation so they have an idea of how much you owe and who you owe it to. 

Financial PreperationThey will then take care of all the work behind the scene to get you the lowest interest rates. Once that is complete, they will be able to put all of your debt into one plan. They will then divide this plan up into payments that you can manage. This is how Federated Financial makes a difference for those who are drowning in debt.

 

By |2021-10-07T06:02:19+00:00July 14th, 2021|Categories: Uncategorized|Tags: , , |Comments Off on What Does Federated Financial Do?