Are Payday Loans Debt Traps?

Jan. 13, 2010 - PRLog -- There is an argument to suggest that payday loans can lead people into a debt trap, however this is only the case when loans are used irresponsibly by the consumer or carelessly lent out by payday loan lenders. Cash Genie ensures it lends out to people who are able to pay the loan back on time. The company prides itself on its ‘Responsible Lending’ policy to keep its debt rate to a minimum and make sure that a strong relationship is created between customer and company. Cash Genie provides customers with a transparent service and an excellent customer help team to certify that customers are more than satisfied with the service provided and are less likely to go into debt.

Cash Genie understands that some customers will find it hard to pay back the loan on time, due to unexpected bills and costs. The company urges people who think they may go into debt to contact the company as soon as possible to come to some sort of arrangement. The sooner the company is notified, the better the outcome will be for the customer. Many payday loan lenders want customers to go into debt and add numerous charges to the account to earn more profit, this is sure to lead to a debt traps for the customer and leave customers in financial problems. Cash Genie work with customers individually to suit the needs of each independent customer who can not pay back the loan.

The ‘cycle of debt’ some  payday loan customers face is when customers have to take out another payday loan to pay off the first loan they have received, and this continues until all they can do is start complaining to the government or OFT for help. But why do so many people end up in debt traps? Well the number one problem is that many people do not manage their cash well. Cash Genie provide financial guidance to customers who are unable to manage their money or who are finding it hard to pay back their loan. It is rare that customers can not find an agreement with Cash Genie’s team so both parties are happy, if the payday loan is overdue.

To find out more about Cash Genie and its practices, visit www.cashgenieloans.co.uk or contact its customer help team on 08459569848.

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Cash Genie is an online based lender of short-term loans. Our loans range from £75 – £750 and can be deposited in customer’s bank accounts on the same day as the application.