While I am sure no one likes to pay the high cost associated with borrowing money 'right now' --pay day lending - an interesting study by Dartmouth suggests having the option for such a loan is cheaper than not.
According to a study, by Dartmouth University, with the purpose to determine the effect on borrowers the study suggests restricting access to expensive credit hurt consumers on average. The reason given is the expensive loans were used for things needed, like a car repair, and without the loan the consumer's financial situation was worse in the long run.
The study looked at Oregon legislation that restricted Pay day loans -- capped the rate lenders could charge --which put hundreds of pay day lenders out of business and reduced the overall number of in state loans.
Of course no one wants to pay high interest rates on a payday loan, or any purchase for that matter. To discuss how to improve access to lenders by raising your credit score give Consumer Credit Capital credit repair Texas a call for a free credit repair evaluation.
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