Payday Loan Sharks Cash In On Soaring Debt and Gold Prices
Tempe, AZ -- (SBWire) -- 09/19/2011 --The Payday Loan industry has been growing steadily for the past 15 years. With some industry experts now claiming it to be a 50 billion + industry with hundreds if not thousands of locations throughout the U.S. and Canada.
As consumer debt reaches record highs so does the demand for short-term loans such as the payday advance. The concept is simple, the lender will loan a qualified employed person a few hundred dollars until their next payday. The cost for this service varies from state to state but on closer examination the fees generally run anywhere from $10 - $25 per hundred which when translated into APR is approximately 650% interest.
The payday industry has long been accused of predatory practices and some states have gone as far as to outlaw them, such as New York, Massachusetts and Pennsylvania. Where as other states have simply gone the license and regulate route. “A fast cheaper alternative to bouncing a check, getting your electricity cut-off or being late on your credit card payment” Says one popular payday loan business website which claims that these common problems which plaque cash strapped Americans has higher financial consequences than getting a payday loan to rectify it.
But let’s that someone already has a payday loan out or say they’re self-employed or they just don’t qualify for a payday loan which accounts for at least 10% of all Americans, what options are there for them?
In the past few years we’ve witnessed a surge of new companies offering to pay consumers cash for their old, unwanted and broken gold. These Cash for Gold businesses have been popping up everywhere and clearly consumers are quick to utilize this service. Initially it was just the pawn shops and local jewelry shops offering this service but now Payday Lenders have gotten into the cash for gold game in a big way. “It was a perfectly natural fit”; says Drew Skelly a Payday Loan Consultant who has been training business owners how to start a payday loan business for the past 7 years. Skelly continues; “The key to any business success is low risk and high profits and the cash for gold service offers this in spades”. Skelly states that the majority of his clients are small business owners such as Tax preparation specialists looking to add payday loans and cash for gold to their existing businesses. “Since Franchise companies are so expensive to start, I offer a less expensive alternative with an independent advantage.”
So how does Cash for Gold work? The process is simple. A consumer takes their gold to a Cash For Gold service provider who in turn tests and weighs the gold then offers the consumer anywhere from 40 - 90% of the current gold spot price for that day. Mr. Skelly shares, “I now have clients who I have helped add Cash for Gold to their Payday Loan businesses that have recently started saying that their Cash for Gold service has begun to out perform their payday loan services.”
As Gold prices continue to soar these Cash For Gold operators are a gaining a two-fold benefit, not only are they able to purchase gold at a discount but earn even more profit as the price of gold continues to climb. Just in the past 60 days Gold has surged from $1600 per oz to a record of over $1900. According to some experts it isn’t expected to stop anytime soon. Entrepreneurs looking to learn how to start a cash for gold business are strongly encouraged to always perform their due diligence before considering any type of business opportunity.
For information on payday loan or cash for gold consulting please visit: http://paydayloanbusiness.info
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