Benefits, Consequences of Payday Loans in Kansas
By J.J. CameronPayday Loan Writer
As controvery continues to swirl in Kansas - and protests over payday loans even take place - it's important to take a look at the pros and cons of such cash advances.
As payday loan stores pop up all over the state, there's been a surge in debt for its citizens. Coincidence? No way, says Marcia Collins.
“We see people almost everyday that are in trouble with payday loans,” said the consumer credit counselor.
The reason for this proliferation of problems? The cash loans have high interest rates, which make it very tough for borrowers to fully replay the payday loan when it's due.
Of course, those who work in the quick payday loan industry said they are most often used by people with legitimate emergencies, such as needed medicine for a sick child or necessary car repairs.
“I think it's the lesser of two evils for most people,” said Dennis Stein of Pawn Marketing, Inc.
Stein, who runs a pawn shop that also offers fast payday loans, said the only alternative for many people is to write a bad check and then face an even more severe penalty from their bank. If regulations make it too difficult for payday loan companies to operate, people may turn to the Internet, where it's easy to find a site that offers the service.
Over at Consumer Credit, though, the counselors hold out hope that people will educate themselves on the perils of payday loans and have a back up plan for those last minute money emergencies.
Wichita advocate group Sunflower Community Action hosted Friday’s conference regarding the issue, where politicians, residents and city leaders met to discuss possible future faxless payday loan regulations.
