Payday loans have become a popular
choice in the wake of the global financial crisis, but banks have become less
willing to lend much needed funds to Americans. This is because the number of
defaulters has increased tremendously as an after effect of financial crisis
and no cash cushion. Even though President Barack Obama has lectured bankers at
length about increasing lending, with some success, many struggling Americans
are turning to alternative lending sources.
The payday loan is a small
principal, highly convenient loan that is very handy when some sudden
unexpected financial need arises. It is suitable for middle class struggling to
make it from one pay check to the next. As these loans are quickly approved,
people are finding that they are a practical solution to their short term
financial difficulties. This is certainly the case for Richard and his wife,
Gina who recently lost her job. "Suddenly having to survive on one income
was a struggle," Richard admitted. "The bills began to pile up pretty
fast and we found that my income wasn't able to cover them all. So we decided
to take a payday loan to ease the burden. It did give us quite a bit of
breathing space."
Obama strikes again...
Obama has time and again told the US
banks to increase lending loans. Last year in December 2009, he spoke to
executives of top Americans banks last year in December where he stated that
banks have always benefited from assistance from the government and tax payers
and that now in this critical phase of worst economical crisis he expects them
to show keenness towards rebuilding the US economy. The president mentioned the
bankers as "a bunch of fat cat bankers on Wall Street". In his recent
speech, Obama said that the US is in a deplorable condition from economic point
of view. He further stated that if banks are left to act on their own such a
situation will keep arising after regular intervals. After continuous debates
and discussions, some US banks have promised to increase lending.
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