Payday and Micro-Loans Grow in Popularity in the US

According to a recent report by the Associated Press, what was once a normal practice within Africa, South Asia, and Central America is not becoming increasingly popular in the United States. Small businesses are increasingly turning to microloans between $500 to $10,000 for funding in both times of difficulty and to aid organizational growth. Such loans are being provided by micro-loan specialists and non-profits. Another form of loan that is utilized for the purpose of personal expenses is that of the payday loan.

This allows for $300 plus dollars to be borrowed for a fee.  A direct debit is then set up to pull the amount of the loan out of the loan recipient’s bank account. According to Premal Shaw of Kiva, a nonprofit provider of microloans, “You know this “Buy Local” movement? There’s starting to be this ‘Lend Local’ movement.” Such a movement is a result of banks becoming more and more selective as to their customers. Both loan forms are considered short-term and are normally paid back quickly. For instance, the average microloan is paid back within six months and a payday loan is paid back within one to two weeks.

Experts agree that the key to benefiting from short-term loans and cash advances is to find a reputable and transparent lender. This effort can be accomplished via online searches. For instance, to gain a payday loan Huntington Beach, all one would have to do is perform a Google search and seek out customer reviews.

With the election nearing as November approaches, there is no telling where the economy is headed in the short-term. It has been rumored by leading economists that the Fed will work to keep things stable until the election commences. Some have even gone as far to say that Obama is the Fed’s official pick, thus it will work extra hard to keep things ultra-stable. As the year progresses, it is best policy to live simply and seek to keep debts as low as possible. If or any reason a small loan is needed, a payday loan may just do the trick for many individuals and micro loans a perfect option for small businesses.

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