by Jaynee Sasso
The extreme financial pressure felt by so many Americans today can cause them to experience a loss of hope. As a result, people feel forced to make choices that potentially causes more harm than good. For example, in order to maximize cash flow, many families have turned to payday lenders for relief.
The trap set by payday lenders is really no different than the vicious cycle perpetuated by other types of consumer loans. The fundamental principle is to get the consumer to borrow more than what she can afford to re-pay. Ultimately her family becomes stuck in a cycle of making minimum payments towards a loan balance with compounding interest, fees and penalties. Once in the debt trap, it takes a great amount of determination and discipline to break free. Discovering ways to adapt your present lifestyle to better respond to the cash flow crunch is a much better choice than taking on additional amounts of consumer debt.