Over the years I have noticed an abundance of pay-day and fast loan type businesses popping up. Typically they exist in areas where there is a larger cash economy. Often in parts of the city where people do not have regular bank balances talk tiny English and do not trust banks, or where less than economically savvy folks hang their hats. They would not do nicely with a normal bank account because quite overtly they can't balance a check book. Whose mess up is this, is there someone to blame? Why has this venue did very well while the regular banking sector taken such a hit in this last commercial recession. Yes, let's speak about all this if we would.
Many years back, I had an acquaintance who started a pay day loan business and a pawn shop. I used to tease him and call him a loan-shark. He strongly defended his conglomerate as just, honest, and claimed free-market standing. He said he did not hold a gun to anyone's head to bring in their private items or take out costly customer loans, theydid it by choice and I for one who loves liberty, liberty and choice should respect this. Yes, I understand that discussion. Still, when you see too many of these types of companies in the city, well, you know; there goes the neighborhood as one says.
I have always noted that they draw the wrong element. But maybe that is due to the fact that that level of citizen may struggle to use the ordinary banking system, for whatever reason. Maybe, previous personal selections they've made, who knows, nevertheless, my discoveries do hold true. In areas with a sufficiency of liquor stores, one-dollar stores, tattoo parlours, and bars, we usually see the archetypal pay-day loan establishment in a strip center nearby, customarily more than one. Yes, it must be a good business model, even with the bullet proof glass and often less-than-desirable standing in a line or loitering out front.
Then again as my past acquaintance says; who on earth am I to judge? In wealthier suburbs you don't see a lot of pay-day loan businesses really, sure there are a few , but in the inside city or poorer neighborhoods you see them in each enormous shopping center and near areas with lots of low rent apartments. There are more issues with all this, you see many people go to cash checks in these kinds of places, and the company takes a big fee for doing so , sure there's risk involved for them, but their business design allows for that too. People not paying taxes, working under the table, getting occasional checks - cash those checks at these places.
It appears we have a difficulty with consumer credit nowadays. Visa Card companies earn big money off those with huge eternal balances and levy interest rates which are crazily high. Banks can't charge that much for their loans, as they appear to be controlled, but somehow these firms can thanks to their lobbying power. The same thing is right for pay day loans, that is the same ballpark I'd put them into. Let's face it poor folk make poor choices, regularly they don't have many choices, but choosing to use an enterprise like one of those is another stupid call on top of whatever decisions led these people to this private commercial fact of theirs.
The WSJ has done a bunch of articles over the years of the way the cash economy exists, the way in which the IRS is trying to cut down on it, and how payday loan firms and pawn shops have popped up to meet the free-market wishes of the people who are playing in a base kingdom of our economy. The expansion of both the cash economy and these sorts of enterprises has actually grown over the years.
Additionally,despite what my acquaintance has to say about all this, I do not find that a positive development. It just continues commercial enslavement, high IRs on short term borrowing, and increased criminality and minor tax evasion issues. Hence the other day, when sitting at Starbucks overhearing a conversation, someone said; "I need a payday loan quick," I thought to myself; "no he does not" that's just a poor brief business call, which is probably a bit of a habit of his, and why he's still poor. Please consider all this and think on it.
Many years back, I had an acquaintance who started a pay day loan business and a pawn shop. I used to tease him and call him a loan-shark. He strongly defended his conglomerate as just, honest, and claimed free-market standing. He said he did not hold a gun to anyone's head to bring in their private items or take out costly customer loans, theydid it by choice and I for one who loves liberty, liberty and choice should respect this. Yes, I understand that discussion. Still, when you see too many of these types of companies in the city, well, you know; there goes the neighborhood as one says.
I have always noted that they draw the wrong element. But maybe that is due to the fact that that level of citizen may struggle to use the ordinary banking system, for whatever reason. Maybe, previous personal selections they've made, who knows, nevertheless, my discoveries do hold true. In areas with a sufficiency of liquor stores, one-dollar stores, tattoo parlours, and bars, we usually see the archetypal pay-day loan establishment in a strip center nearby, customarily more than one. Yes, it must be a good business model, even with the bullet proof glass and often less-than-desirable standing in a line or loitering out front.
Then again as my past acquaintance says; who on earth am I to judge? In wealthier suburbs you don't see a lot of pay-day loan businesses really, sure there are a few , but in the inside city or poorer neighborhoods you see them in each enormous shopping center and near areas with lots of low rent apartments. There are more issues with all this, you see many people go to cash checks in these kinds of places, and the company takes a big fee for doing so , sure there's risk involved for them, but their business design allows for that too. People not paying taxes, working under the table, getting occasional checks - cash those checks at these places.
It appears we have a difficulty with consumer credit nowadays. Visa Card companies earn big money off those with huge eternal balances and levy interest rates which are crazily high. Banks can't charge that much for their loans, as they appear to be controlled, but somehow these firms can thanks to their lobbying power. The same thing is right for pay day loans, that is the same ballpark I'd put them into. Let's face it poor folk make poor choices, regularly they don't have many choices, but choosing to use an enterprise like one of those is another stupid call on top of whatever decisions led these people to this private commercial fact of theirs.
The WSJ has done a bunch of articles over the years of the way the cash economy exists, the way in which the IRS is trying to cut down on it, and how payday loan firms and pawn shops have popped up to meet the free-market wishes of the people who are playing in a base kingdom of our economy. The expansion of both the cash economy and these sorts of enterprises has actually grown over the years.
Additionally,despite what my acquaintance has to say about all this, I do not find that a positive development. It just continues commercial enslavement, high IRs on short term borrowing, and increased criminality and minor tax evasion issues. Hence the other day, when sitting at Starbucks overhearing a conversation, someone said; "I need a payday loan quick," I thought to myself; "no he does not" that's just a poor brief business call, which is probably a bit of a habit of his, and why he's still poor. Please consider all this and think on it.
About the Author:
Sharon Lum is an expert for foreigner loan Singapore, and have gigantic experience dealing with people of all nationalities in money desires
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