New Report Exposes Flaws of Cashless Society and Problems with Credit Cards

DENVER, Colorado, July 1, 2013 /PRNewswire/ --

A recent article published in The Atlantic adds support to the argument that cash-fueled forms of borrowing, such as payday loans, can lead to more responsible and mindful spending when compared to cash-free options such as credit cards, says short term loan comparison site PaydayLoansOnline.net.

Whereas in the 1970s less than 20 per cent of the adult population in the United States owned and utilized a credit card, that figure today is closer to 75 per cent and has changed the way consumers view money, spend it and accumulate debt. The Atlantic article highlights the nexus between credit card usage and overspending, by acknowledging that credit cards "pull expected future earnings into today."

However, although pay day loans see consumers borrow according to their future month's income, there is often a stringent limit on the amount that can be borrowed, minimizing the consumer's propensity to mindlessly spend. Credit cards offer no such buffer, with credit limits often denominated in thousands of dollars, representing up to 10 times the average worker's monthly net income.

Credit cards present a much more pernicious way for consumers to spend more than they earn, says Sam Milo, spokesperson for PaydayLoansOnline.net who responded to the findings of The Atlantic report in the following statement that was released to the press.

"We have seen firsthand that lower income American consumers are more likely to fall into financial trouble due to credit cards. The research presented by The Atlantic shows clearly that credit cards encourage a "buy now, think later" mentality that does not help individuals manage their finances responsibly. It is too easy to pay by swiping plastic and we believe that a responsibly borrowed payday loan, with clear terms, a limited length and a manageable amount, represents a safer way to borrow. With cash, there is no way to lose track of what is being spent."

PaydayLoansOnline.net is a McAfee Secure™ rated site. It offers guidance on responsible borrowing and free loan comparison. It also requires all of the lenders that feature in its comparison database to adhere strictly to all state and federal laws on short term lending. To read the site's guide on responsible borrowing, visit: http://www.paydayloansonline.net/payday-loans/

Contact:
Sam Milo
Tel: +1-678-666-0100
[email protected]

SOURCE PaydayLoansOnline.net

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