The payday loan industry has sparked a lot of debate. There are many who see these services as outright usury, or the act of charging unfairly high interest rates. These critics believe that lenders target groups with a history of bad or no credit and by offering a short repayment term, push these borrowers into a vicious cycle of debt wherein the borrower must continually take out a new loan in order to repay a previous one. On the other side of this debate are those who believe that payday loans are beneficial precisely because of the fact that they are available to people with no or bad credit who do not have access to traditional loan services. So the question is: who is right? This debate has been going on for some time, and it is doubtful that a definitive answer can be given in just a few words. What can be done is to enlighten borrowers on how to manage their loans responsibly so as to never encounter the very issue that critics raise - the payday loan cycle. Proper loan management can help guarantee that you enjoy the benefits of this assistance without falling victim to possible negative consequences.
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