www.speedydosh.co.uk

I want to take a minute to post about the current state of the US economy and how online payday loans are very much affecting the United States as a whole. Payday Loans (or sailor loans as they are sometimes called) are a great short term fix for a financial problem, by short term I mean if you can pay it back in a week.

The way they work is when you are unable to pay back the payday loan you actually have to take out another payday loan - this also doubles the rate of your interest - making it harder to pay back. This can continue until your interest sometimes builds up to 900%!

So why is this bad for the economy? Because it is currently keeping a lot of Americans in debt - which in turn is killing spending and making the U.S. dollar stay at its current weak state. Now I am well aware that this is not the only issue why the American economy is suffering so greatly but it does play a significant role.

There is some hope on the horizon! Currently no members of the Armed Forces may be granted a traditional cash advance on their paycheck - instead there are fixed rates that apply and the federal government has stepped in to make sure that nothing goes higher then these rates. Also a few states have put a cap on the amount of interest rates that payday loans can charge.

What happened in these states? Almost every payday loan shop has closed up and moved out of town. The cap on the rates is the end for predatory lending in this field so the vultures that have been circling have flown away to seek out different places to feed.