Apr 25

Research reveals that the habitual borrower for short term emergency cash is aged 45 and above in USA. How did this borrower mange to survive in this debt laden economy up to the age of 45? Research reveals that skills obsolesce and refusal to migrate or relocate is the major cause for sudden need of emergency cash loans. By age 45 this borrower has acquired some valuable assets that he/she is now ready to pledge to raise emergency cash.
Read More »

by admin | | No Comments »

Apr 22

By graduating the under-banked borrower from his/her existing cash transaction habit to the use of debit card/checks/credit card/bill pay can add billions of dollars to the exchequer/fed revenues.

The Million Dollar Question Is Who Shall Bell The Cat

Who shall invest in educating these under banked Latinos in USA? Interestingly  the Latino population instead of converting to English speaking population has on the contrary influenced the English speaking population to learn their Latino language.
It is estimated that in USA alone 20 million Latinos send cash dollars back to their relatives in their home country. A good many failed cash transactions result in violent crimes in USA as well as the country where the cash money was destined for. Research has established that the unprivileged in USA can go to under ground world for sending back cash home at least 5 times a year and  at least another five times a year to the pawnshop to liquidate/pledge their personal belongings.

Are We Truly In An information Technology Era Where Money Can Be Shifted From One Part Of The World To another Part At The Click Of a button.

In a good many case the cash send back to home country thru the under world in USA can take up to two months for it to be delivered to his/her Relative in  his/her home country.
The fee charged by the under world cash transaction companies can be as high as 25% of the money send. Looking at these research studies for the cash being shipped over seas it looks a seemingly reasonable and responsible for Pay-Day Lender to charge a slightly higher APR.  The traditional banks and credit card companies may disguise their APR by re-defining the cost of borrowing as origination fee or closing cost or pre payment penalty etc etc.

by admin | | No Comments »

Apr 20

Several Universities in the advanced countries that offer advance degree in Banking and Finance have tried to assess the role played by non traditional lenders including Pay Day Loan Lenders.  It is an established fact that in spite of good academic education up to high school still in these advance countries only 70% population has traditional bank accounts.
This makes it extremely difficult for non traditional Lenders including Pay-Day Lenders to service the other 30% population that are in desperate need of short term loans in small amounts. Pay-Day Lenders take the greatest risk among all non traditional lenders to service the 30% under-severed/under-banked population in the advanced countries. Read More »

by admin | | No Comments »