Even though the Payday lending industry is pretty disorganised and broken up, it is still a very big business. Not only is it big, but the business has grown very quickly in the last few years. In 2000, there were between 7,000 and 10,000 PayDay lending offices.
In 2003, just three years later, there were an estimated 22,000 offices. This was good for the industry because it meant the number of offices had more than doubled. During the same time period, the value of loans in the industry went from six billion dollars in fees in the year 2000 to more than forty billion dollars in fees in the year 2003. Part of the reason why this field is so popular and profitable is that the money they lend to people who need short-term loans brings them back a lot of money, which helps them make a lot of money.
Today, the size of the business has grown even more. In fact, some sources have said on the record that they think many statistics today are four times as important as they were when they were estimated in the year 2000. As a whole, the business is currently running in more than thirty-five states in the United States of America.
Almost everyone will have a time in their lives when they don't have enough money to pay their bills, buy groceries, and take care of themselves between paychecks. Whether it's because of the economy, bad choices people make with their money, emergencies, or something else, these things happen. Payday lenders offer a quick and easy way for people to get money when they need it between paychecks.
Some banks don't let people borrow money for short periods of time. Some people who need short-term loans find this frustrating because they have to pay interest on the money they borrow from their lenders. The amount of money borrowed over a certain amount of time is used to figure out the interest. If someone borrows money for a long time, they will have to pay more interest. Because of this, most financial institutions want to lend money for longer periods of time, when they can make money from the interest. Short-term loans definitely make less money. Most people with good credit can get loans at almost any time, but the situation is usually not as good for people with less than perfect credit. Because of this, people with less good credit usually have a harder time getting a loan. Payday loans are available to people even if they don't have a lot of credit history. This makes the loans helpful and useful for all kinds of people in need.
