Predatory Lending and Payday Loans

Sharks are well-known universal predators. They are both dreaded and admired, though, more the former, to be precise. They live in the ocean and hunt and they are a part of the food chain. As any other predators they are likely to get their pray unprepared for the attack and there are enough of such ones. One thing that is hard to understand is that there are many other predators with teeth and strength and the desire to kill. However, sharks are dreaded more than barracudas or piranhas and others with bad reputation. In fact, they have the worst one. Basically, payday lenders are frequently compared to sharks and not without a reason. They prey on individuals with low incomes and poor budgeting skills. But the thing is that payday lenders are far not the only and the worst predators on the market and there are many others.

The situation when there is no cash left to cover some unexpected expenses and the payday is far away is absolutely not new. Budgeting problems have got centuries of history and there is no sense to say that only recently people have become careless and prone to getting into bad debts. People have also always been rather careless to get carried away by easy money prospects so that they eagerly go and deal with payday lenders. In this respect they come into a predator’s jaw themselves and it is quite unfair to say that lenders make something indecent or unlawful. Such short-term and expensive lending has got quite a long history. Lenders offered expensive loans that were supposed to be repaid in short time and in case of non-repayment, brought even more profit. This is the way they made money and this is how their business worked then and still does now. This is the nature of a loan in this respect; this is the nature of a predator – they never work for the benefit of a borrower.

Earlier debtors were punished quite severely with all the imagination characteristic to the age. However they have much less to be afraid of now. The worst thing that can actually happen is that a borrower can lose a car or any other valuable property. He or she can also ruin their credit score to the extent that no other loan can be thought of in the nearest future. Still, these punishments cannot be compared to the ones implemented in, say, the Middle Ages when a person could get penalized really severely. Still, no one is getting their limbs cut off or burned or whatever else but it makes no sense to deny the fact that debts and payday loan debts in particular can lead to really serious consequences. Debt trap is something many families get into and suffer from and it is all because of predatory policies of payday lenders. Looks like we do not learn at all. And never on our own mistakes. Predators are able hunt the pray that allows to get caught and attacked. In this respect there are customers who allow themselves to get into the debt circle and then blame everyone around.

When it comes to payday lenders, one should understand that they are scam and predators, that is true, but that there are many other services and credit types that pray on the middle and poor classes as well. Take mortgages, for instance. Though, the rates are considerably smaller, still, this is also a credit and the debt that many people hang on their neck because they need somewhere to live. Or pawn shops; there is no need to explain this one. The thing about payday lenders is that they are somehow taken the place that existed through the history and their predecessors got their profit quite successfully for centuries and they were not called sharks and predators for some reason. But now they are.

The thing about predatory payday loan lenders and their relationship with the borrowers is that the latter have to understand the connection is here as long as they allow it to be. There is other fish in the ocean that never meets with sharks and hopefully never will. This is the matter of wisdom and lessons learned. One of the basic thoughts is that sharks, either the ones in the wild or metaphoric ones, will always exist and this should be taken as a given. The ability never come their way and be able to live on the amount of funds one has at their disposal is the wholly and the only key to success. This does not mean that emergency situations will never take place and that one can be save from payday lender sharks. The main idea is that this is for a borrower to chose either to handle the problem or to fall pray of a situation. There is a lot of fish in the ocean that successfully lives up to senior age and doesn’t know what the trouble is.

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