The state of Idaho has the highest interest rate for their payday loans in the nation and many of this state’s population are in need of payday loan debt help in a hurry!
At the rate of 582 percent, this puts Idaho at the very top of a list and the reasons for this are many.
All but seven states in the USA have caps on the amount of interest allowed for these short-term high-interest loans and you can guess that Idaho is one of those seven states that do not have any limits on the amount a lender may charge for these types of loans.
Payday Loan Debt Help For Idaho
Speaking of lists, Idaho is also at the top of the list of states that are in the highest need of help with payday loan debt by it’s residents.
Of course, this makes sense considering the interest rates they are charging are the highest but that is only a small part of the story.
There are other reasons why this state is having so much trouble with these kinds of loans and changes need to be made to stop this trend before it ruins more lives than it has already destroyed.
Let’s take a look at why this state’s problems are so large:
- Lack of regulation – Many legislators are in the payday loan companies pockets as this industry spends huge amounts of money on lobbyists and on making deals with politicians.
- Too many loans – States that are allowing a person to have more than one payday loan at a time are creating an extremely dangerous cycle of debt as most people will borrow to be able to pay and that leads to a disaster every time it is created. People will not be able to maintain this pace and when they crash they usually burn badly.
- No interest Caps – States that allow no caps on the interest payday loan companies can charge for these loans are only adding to the risk of borrowers getting caught in the payday loan trap. By simply creating the situation where the lenders will encourage the borrowers to extend their loans thus creating a whole new interest charge, the borrowers find themselves ending up with huge amounts owed in a very little amount time.
- Extensions – By allowing payday loan extensions as explained above, states that do this are opening up the borrowers to all kinds of huge interest charges that can turn a $500.00 two week loan into several thousand dollars owed in a matter of weeks.
- Too Much Political Power Held By The Lenders – The states with the highest interest rates and default rates with this kind of debt all have politicians who are backed by the payday loan industry. This gives this industry way too much power when it comes to influencing the passing or non=passage of laws involving their trade.
Summary
When a state ends up on top of one or more lists like Idaho has involving payday loan debt the people who do the voting must take a good look at what is causing this and do their best to elect people who will make the changes that are needed.
These loans should be two-week maximum time frame loans that can be paid back in full on the due date.
No extensions, no multiple loans and a cap on the interest charged with an established payback plan for any loan that ends up in default would level the playing field for the borrowers who so far are getting the bad end of the deal.
If all payday loans could be regulated this way across the board people who are desperate for cash would still have a way to get fast money but also be able to pay it back without selling everything they own and risking so much for so little!
