The Effects a Payday Loan Store May Have on Your Community
Most people may think that payday loan stores have only been around for the last 10 years or so. This is because of the boom with these storefronts opening up across the country. Payday loan stores are everywhere, at every corner you turn. With the industry continuing to boom many residents in areas nearby are becoming worrisome of the effect that a store will have to their community.
Residents are not happy that these stores are opening up in their neighbourhood for the following reasons:
Not aesthetically pleasing – Residents will complain that a payday loan store is an eye sore and is not aesthetically pleasing for the neighbourhood. Most people don’t want a tattoo parlour or pawn shop in the area because of the stigma attached to it. A payday loan store is no different in their eyes.
Increase neighbourhood crime – They are concerned that these financial institutions will increase neighbourhood crime. The companies who provide the service and some of the consumers who use the service understand the need for a payday loan for those hard working Canadians who are facing financial hardship with a bad credit score. With that said, it’s hard to ignore that these locations do attract the wrong people to the neighbourhood.
How it affects other businesses in the area – Many will argue that having a cafe or small restaurant next to a payday lender will drive their business away because flashing neon signs stating “Quick cash” doesn’t exactly scream relaxed atmosphere.
The value of their property decreases – If you have several of these stores in your area, the value of your home can decrease. It may also be a lot harder to rent a property or sell a home because as a buyer you will look at all elements and will factor in the area as being a low income neighbourhood.
The impact it will have on families in the community – For customers in need of a quick loan for emergencies, it may be a convenient resource HOWEVER all these loans come with extremely high interest rates and fees and these vulnerable families can easily become trapped in the payday loan spiral causing more hardship than just financial hardship.
Not only can individuals pay a high price from these types of lenders but an entire community, the very community that has struggled to reduce crime can also.
There are alternatives to borrow money for people with bad credit histories. There are lenders, like Prudent Financial Services, that will not only lend you money with a low interest rate but will also help to increase your credit score by reporting all your payments to Equifax.