As payday loans become more common, many consumers are finding out just how high the cost of getting one can actually be. Sky high interest rates and horrible terms usually aren’t important when you need money quickly, but it quickly becomes an issue when you need to pay it off. Easy loans are popular, but they may not always be the best solution. In answer to this problem, the State of Colorado is working on legislation that will create an emergency fund for residents to get easy loans in an emergency situation. It is expected that if this bill is passed, other states and countries may adopt similar legislation.Payday loans are becoming an increasingly difficult issue in the US. The Federal Reserve has also noted the problem, stating recently that, “Georgians and North Carolinians do not seem better off since their states outlawed payday credit [in 2004 and 2005, respectively]: they have bounced more checks, complained more about lenders and debt collectors, and have filed for Chapter 7 (’no asset’) bankruptcy at a higher rate.” By offering consumers another option, it is hoped that easy loans with bad terms will no longer be a necessity, once better options are available.
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