Payday Loans For Women Seem to be More Prevailing
Women are leading independent life nowadays along with handling home expenses. They are equally participating as men in paying bills and mortgage installments so they are more likely to face emergency cash needs at the end of the month when the salary is almost spent. The reasons behind are fast pace life, stagnating wages, insecure employment and hike in prices of goods required for daily needs. A survey showed that 51% of young women and 45% of young men regularly use credit to stretch their finances until payday.
The debate over women is raging in the economy according to the report from the attorney general of Colorado. It states that women year after year women are contributing more to payday loans Denver business as compared to men. Studies have also revealed that perhaps it is not just a temporary because it seems like a global trend prevailing as reports are coming out from the other US states, Australia, United Kingdom and few more regions of the world. In Australia, the percentage of women borrowing a payday loan have increased by a staggering 110% over the last 10 years.
Colorado government, however, has passed legislation restricting payday lending service in the State in August 2010. An interest rate cap on the loan amount was initiated, and the minimum term was extended to six months.This doesn’t seem to be stopping women from applying and getting the required cash via instant loan. Although, some lenders went out of business in the state, but the others became more efficient and started serving more customers especially women over past few years.
Why Are More Women Taking Payday Loans?
The experts are saying that there are a few obvious reasons for this trend as follows:
Effect of the Recession
Although recession is a few years behind, but consumers are still its effects. Many people are still unemployed. Data shows that more women lose jobs as compared to men when there is recession. For the same work, women are making less money. This is true not just in Colorado but in other states as well. It is a well known fact that women often have to face the repercussions of any downtime because usually they take care of the immediate requirements of the family. To get rid of the despair of paying urgent bills, clothing and food, they have no other option other than taking quick cash loan that gives them immediate funds they need.
More Women are Becoming Independent
Both married and unmarried women are starting their own small businesses to become financially independent. Businesses, whether they are small or big, need cash from time to time for various reasons like buying resources, marketing, paying wages. When quick money is required the banks and conventional financial organizations are not the place to go because they take a lot of time in processing. In contrast, short term loans process the application on same day and the approval is granted within few hours of applying. The money through these loans is disbursed in 48 to 72 hours. Alongside, the borrower does not have to explain why instant monetary aid is required, making these loans favorable.
Domestic Issues
Married women face domestic violence in families and are being forced to take credit. In some instances, a husband pressurizes them to get into debt forced to hand over the money. This certainly is abuse, which is happening not just in the United States, but elsewhere in the world as well. That’s the opinion of the workers who are working with the victims of domestic violence, who have filed a report coinciding with the International Day for the Elimination of Violence against Women.
On a whole, no matter what a reason is, it is a fact that more women are now depending on payday loans to bring short term relief to their respective lives.
