UK Paydayloan

Being an insider to the workings of the payday loans industry, I am often asked if I feel ashamed to be taking advantage of poor people. After all, isn't it the poor that my industry 'preys' on and willingly takes advantage of. In reality, those statement could not be any further from the truth.

First, payday loan companies are in business to make a profit, which requires that the borrower actually be able to repay the loan. This usually means that the poor are not a target demographic for these companies. Of course, this is all based on what is being classified as poor. One could make half a million dollars a year and still be poor because of bad spending habits. So the term has to be kept in perspective.  When a loan company decides to make a loan, you can be sure they are only targeting someone who can pay them back and not an individual who is impoverished and will not be able to repay.

 So, then who is the target demographic for payday loans? From my personal experience with the industry, an average customer earns on average about thirty six thousand dollars per year, works in an office environment (often IT) and is often  a single female. The actual customer base varies a great deal but that is a fair average.  If a loan happens to be made to someone who is actually impoverished, it is usually because that person has not been honest on his loan application documents. Of course, a very large percentage of payday loan borrowers actually have no intention of repaying the loan as agreed and this leads to a greater risk for the loan company and hence the seemingly predatory interest rates. It is often the actual payday loan company that is being taken advantage of and not the consumer.