The Future of Payday Loans

Payday loans have been the topic for discussion among lawmakers for a while now. These short-term loans are extremely popular, especially among those who have trouble borrowing money from traditional lenders. Many rely on payday loans to tackle small financial emergencies that can crop up from time to time. Situations like auto repairs, replacing a broken appliance, or making a final payment on another bill are common uses for these loans.


Still, payday loans are no stranger to government regulation. Many states have their own take on how payday loans should be regulated. Some have strict guidelines as to how much an individual may borrow at any given time while legislators in those same and other states have put stringent regulations on interest rates.

There are states that have made these loans illegal while still more state governments impose no limitations at all. It would seem lawmakers don’t all agree, which is not surprising.


Needless to say, all the attention that payday loans are garnering from state governments is leading up to discussions among lawmakers. What the public can likely expect to see over the next few years is more structured guidelines set in the industry.

Ceilings will be set for loan amounts and interest rates. While that may sound bad for the lender at first, business is still good in areas where regulation is already happening as direct lenders who follow these guidelines are actually finding that more people are coming to them as opposed to shiftier, third-party lenders.

The Road to clarity

Considering the popularity of payday loans and the attention lawmakers are giving the industry, the details and attraction of such loans may begin to become more clearly defined. Bank lenders may look to see why people are flocking to payday loans instead of trying to go through an application process for a bank loan.

People will understand how paydays loans work best and when the right time is to get one.


It may be that payday loans are about to become far more defined and refined within our current society. Established and fair regulations will give borrowers confidence when considering a loan which, in turn, will bolster their resolve in getting out there and actually getting one.

This is good for lenders as the public will have better knowledge on when and how to use their services. Improved knowledge will eliminate any confusion thus giving customers a much more positive experienced which will encourage them to return and repeat that experience next time they need a loan. This results in a definite win for all involved parties.


Learn online

It may be a good time for individuals to go online and learn more about payday loans and see how the recent changes are affecting the industry. In the course of perusing information on the web, one may learn more on how and when a payday loan can or should be acquired, how much to borrow, and the proper way to pay it off.


It is definitely an era of understanding the payday loan.

About Kelly Stone

Kelly is a graduate of Northwestern University's Kellogg School of Management with a Master's Degree in Finance. Kelly has 20+ years experience in the short-term lending industry since 1996, having owned 50 storefronts offering payday loans. As President of Snappy Payday Loans, Kelly has built a large network of lenders and is dedicated to ensuring consumers nationwide can find the loan they are seeking. View More