Mississippi and Payday Loans Go Hand In Hand

mississippi and payday loans

loan companies that grant short term loans are thriving and have established that Mississippi and payday loans go hand in hand.

With over 1000 loan storefronts across Mississippi, it takes little effort to find these places, and that is actually by design!

Along with location comes the ease to qualify for one of these loans and wham, you are on the top five on the recent list by The Consumer Financial Protection Bureau (CFPB)

Today we will look at why Mississippi is a hot bed for these high interest short term loans and what it means for the people living in this state!~

Instantly qualify to eliminate your payday loan debt for pennies on the dollar!

Cause and affect

There are several reasons why this state comes in so high on the list of top states that write these loans.

In general, the CFPB was the regulatory entity created by the Obama administration to combat these types of loans and regulate them and for the most part they were doing a good job.

They had new laws taking affect that would regulate the ability for the borrowers to afford to pay back these loans and cap the amount of interest the loan companies could charge.

They also had a cooling down time period between taking out these loans but all of that went away when the Trump administration eliminated all of the new regulations

They claimed it tied the loan companies hands and was causing undue loss of profits and they also claimed this type of regulation should be up to individual states to set their own policies and regulations.

The results of this action now have what was once the watchdog of the predatory lending industry becoming powerless to do any regulating.

Poverty level

fighting poverty

Another big factor in Mississippi is the number of people living from paycheck to paycheck and do not qualify for regular credit options.

When an emergency arises they have no place else to turn to get short term cash so off to the payday loan store they go, and to many this is a much needed option!

What is not needed is the lack of regulation that would keep this type of loan safe for the consumer to use.

The companies claim that they can not be profitable without charging huge interest rates but that is really only a small part of the real story.

These companies have a very shrewd business plan that targets the poor and takes advantage of them.

When you have people over a barrel and they need money they will take what they can get regardless of the risk involved and that puts them in a very bad place.

Risky business

Low income people who use these services are more likely than not to run into trouble paying the loan back on the due date in full and end up extending their loan.

This is where the predatory label kicks in.

Because the loan companies know that the average payday loan user will renew his or her loans on average 8 times before they pay it off in full they target these people, thus the number of storefronts in low-income areas.

This is a well thought out business plan to create huge profits at the expense of others hardships and that is how these loans get the nickname of predatory loans and in reality they are just that, predatory!

What can people in Mississippi do to combat this?

combating preditory lending

Mississippi like many other states really has to take a look at their state laws and come up with their own regulatory laws.

Many states like New York for example are completely eliminating these loans by making them illegal.

The problems that come along with each state doing it’s own regulating is this puts the politicians up against huge money in the payday loan industry that is notorious for lobbying relentlessly!

Our take

We feel that educating people on how to use these loans and keeping them out of the debt cycle is the best way for us to approach this.

Our article: “What Is A Payday Loan Trap” covers the best way to use these loans and stay out of trouble while doing so.

While these loans do serve a purpose that is greatly needed for the low-income people of Mississippi and many other states there need to be guidelines to follow when using them and the best defense is always knowledge!

Since the regulatory commission seems to have other ideas about the safely of predatory lending, we are more than happy to step up and help people understand how to safely use these services and how to not get caught up in the debt cycle that usually accompanies them.

Instantly qualify to eliminate your payday loan debt for pennies on the dollar!

18 thoughts on “Mississippi and Payday Loans Go Hand In Hand”

  1. Hello Shawn,

    This is a great informative article on the payday loans. Caught in a debt cycle is very common in our state (in many Indian states). I can say every household face this problem. Many small private companies have established in order to give fast and easy loans to the needed people. Their interest is very high. I think CFPB is great fencing not to cross their limits by the predatory industries. There is an urgent need of creating a regulatory body similar to CFPB for us also.
    Thanks a lot for sharing this insightful article. 

    Regards,
    Ranao.

    1. Hi, Ranao!

      I agree there is a need for a real regulating entity that really looks out for the borrowers, not the lenders.

      Thanks so much for stopping by and checking out our services!

      Shawn>>

  2. This is a classic example of a predatory loan, where the giver preys on the borrowers taking advantage of their poor state to offer them a high-interest short-term loan. Taking a short-term high-interest loan is quite risky, but one would be left with no choice if there is an emergency. Fast forward, legislators in states like Mississippi where these Payday Loans companies are having a field day needs to come up with regulatory laws that would provide checks and balances to their exploitation.  

    1. We do agree with you on the state mandating regulations but we fear the lobbyists will never let it get that far as sad as that may seem.

      All we can do is try to educate people and help the ones who get in trouble.

      Thanks for stopping by!

      Shawn>>

  3. Thanks for this excellent article. Unfortunately, there is no real knowledge about it. This is a very illuminating article on a payday loan. I am going to advise this post to some of my colleagues in Mississippi as well. Anyway in my opinion, I don’t like to use these loans except in case of emergency.

    1. Hi Fabio!

      I am glad you do not use them and please do refer us to anyone in the USA who may need our help!

      Shawn>>

  4. Hey! Thanks for sharing this wonderful article on payday loan, I appreciate you taking time and breaking it all down for us. This is a very informative and educative article on payday loan.
    I will be checking here for more articles like this. Again, thanks for sharing this article. Thanks for building this website and investing your time. It’s a great site.

  5. it’s good to know that Mississippi and payday loans go hand in hand. I for one am having a hard time obtaining loans from where I reside and I will like to maximise this opportunity afforded by Mississippi. 

    The biggest problem with obtaining a loan in my state is how high the interest rates are. 

    1. Yes, using these loans does come at a high cost as far as interest goes, but as long as you pay it off on the first due date in full you should be fine.

      Shawn>>

  6. I never take out these types of short term high interest loans unless I need for some kind of emergency, like medically or to get a car fixed. However I do know a low income friend who takes out these loans, not sure what he uses the money for but probably for food and alcohol.

    I do have a better understanding now about predatory loans and how they target certain types of people, but that’s capitalism in a sense that it’s main goal is profit at the expense of other’s hardships as you say.

    1. Yes, that can be one way to use capitalism, but I would much prefer not taking advantage of people to this extent.

      I am glad you do not use these loans except in case of emergency, and please know if you ever do need help we will be here for you!

      Shawn>>

  7. I really appreciate how you help people try to eliminate their payday loan debt. This is a very good service and you explain all the facets of payday loans in mississipi and how loans work differently there. So if you could live in another state based on how loans work which state would you live in?

    1. Hi, Jon!

      That is a very good question and I do not think I have ever thought about that one!

      I suppose I would love a state that did not have any taxes, LOL

      Shawn>>

  8. Supporters of payday loan in mississipi believe that the availability of these loans help those in need because when an emergency arises they have no place to turn to get a short term cash so they end up going to payday loan store. Though i am reading something like this for the firest time, thanks to this site and it’s a thought out well business plan to create huge profit at people’s hardship. It may sound weird buy that’s the primary aim of every business  ( to make money)

    1. Hi, Destiny!

      Yes, every business needs to have a plan that makes them profitable, but it should be within reason and not be the cause of hardship to the customers.

      Thanks for stopping by!

      Shawn>>

  9. This is a highly informative and useful article my friend.

    I live in Canada so the rules for loans are a little different for me. However, I live paycheck to paycheck and so does my husband. We have never taken out a loan because like you helpfully stated in your article- we would be taken advantage of. I have debt to pay off on my credit card and that’s had enough!

    This article will be helpful to a lot of people for helping them relalise what is fully involved in taking out a loan and that something should be being done for those who need financial help.

    Have you ever had to take out a loan? I know my parents have.

    Keep up the great work!

    1. Hi!

      Yes, everyone here at Help With Payday Loan Debt have had our own bad experiences with these loans and we know what that feeling of helplessness is!

      We hope our articles do help people be more informed and we hope even more that they are informed before they use the service!

      Shawn>>

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