Why some states ban payday unsecured personal loans
http://creditfederal.com/article/articles/762/1/Why-some-states-ban-payday-unsecured-personal-loans
By CreditFederal.com - A good or bad credit personal loan, auto and mortgage financing, and credit card resource.
Published on 03/31/2011
Some states ban payday unsecured personal loans, and there are some apparent reasons why:
Payday Unsecured Personal Loan Banning VS Benefits
It's interesting to note that some of the states which ban payday personal loans (see list below) are among those with citizens that earn higher income averages. Hence, those states have citizens who least need payday loans because they have higher incomes which afford them the ability to set aside money for emergency expenses.
If you compare the average incomes of the states that allow payday loans, you'll see that many of those states have low-income citizens who find it difficult to set aside money for expenses other than day-to-day living.
These states ban payday loans:
Conneticut
District of Columbia (DC)
Georgia
Maine
Maryland
Massachusetts
New Hampshire
New Jersey
New York
North Carolina
Oregon
Pennsylvania
Vermont
West Virginia
State Median Family Income by Family Size (courtesy of Census.gov)
Alabama
2-person families 46,522
3-person families 53,262
4-person families 63,888
5-person families 60,906
6-person families 52,451
7-or-more-person families 51,116
Alaska
2-person families 72,832
3-person families 74,681
4-person families 86,515
5-person families 83,048
6-person families 93,194
7-or-more-person families 79,794
Arizona
2-person families 56,052
3-person families 60,904
4-person families 69,119
5-person families 60,192
6-person families 58,668
7-or-more-person families 56,922
Arkansas
2-person families 44,142
3-person families 48,886
4-person families 56,219
5-person families 49,744
6-person families 50,484
7-or-more-person families 44,307
California
2-person families 63,882
3-person families 69,478
4-person families 78,666
5-person families 67,304
6-person families 65,678
7-or-more-person families 72,296
Colorado
2-person families 64,431
3-person families 69,615
4-person families 80,717
5-person families 73,712
6-person families 68,159
7-or-more-person families 69,719
Connecticut
2-person families 70,941
3-person families 84,873
4-person families 102,127
5-person families 103,795
6-person families 97,098
7-or-more-person families 91,787
Delaware
2-person families 60,862
3-person families 71,139
4-person families 83,602
5-person families 79,813
6-person families 78,398
7-or-more-person families 72,586
District of Columbia
2-person families 74,536
3-person families 65,228
4-person families 69,558
5-person families 70,144
6-person families 54,132
7-or-more-person families 57,188
Florida
2-person families 51,578
3-person families 57,076
4-person families 67,705
5-person families 64,960
6-person families 60,725
7-or-more-person families 60,912
Georgia
2-person families 52,942
3-person families 58,713
4-person families 68,908
5-person families 62,838
6-person families 60,733
7-or-more-person families 57,077
Hawaii
2-person families 64,770
3-person families 73,834
4-person families 87,463
5-person families 85,574
6-person families 89,380
7-or-more-person families 110,632
Idaho
2-person families 50,182
3-person families 54,118
4-person families 62,079
5-person families 59,425
6-person families 54,973
7-or-more-person families 60,829
Illinois
2-person families 59,371
3-person families 69,332
4-person families 80,607
5-person families 75,286
6-person families 69,577
7-or-more-person families 70,952
Indiana
2-person families 51,604
3-person families 59,258
4-person families 69,434
5-person families 67,961
6-person families 64,971
7-or-more-person families 66,349
Iowa
2-person families 54,600
3-person families 63,453
4-person families 73,413
5-person families 70,836
6-person families 65,413
7-or-more-person families 60,881
Kansas
2-person families 56,705
3-person families 63,346
4-person families 71,842
5-person families 70,266
6-person families 62,005
7-or-more-person families 58,865
Kentucky
2-person families 44,876
3-person families 53,457
4-person families 63,825
5-person families 60,077
6-person families 57,136
7-or-more-person families 53,879
Louisiana
2-person families 46,591
3-person families 53,303
4-person families 66,109
5-person families 63,688
6-person families 58,026
7-or-more-person families 54,194
Maine
2-person families 51,054
3-person families 61,341
4-person families 68,237
5-person families 66,958
6-person families 72,023
7-or-more-person families 56,988
Maryland
2-person families 72,770
3-person families 84,594
4-person families 101,997
5-person families 99,828
6-person families 94,085
7-or-more-person families 92,476
Massachusetts
2-person families 67,167
3-person families 82,883
4-person families 100,058
5-person families 101,959
6-person families 99,953
7-or-more-person families 98,610
Michigan
2-person families 51,719
3-person families 61,078
4-person families 73,433
5-person families 71,352
6-person families 62,460
7-or-more-person families 56,003
Minnesota
2-person families 61,457
3-person families 74,371
4-person families 86,099
5-person families 83,143
6-person families 77,909
7-or-more-person families 64,201
Mississippi
2-person families 41,413
3-person families 46,121
4-person families 55,809
5-person families 50,139
6-person families 45,619
7-or-more-person families 43,614
Missouri
2-person families 50,771
3-person families 58,646
4-person families 70,232
5-person families 68,096
6-person families 67,134
7-or-more-person families 60,946
Montana
2-person families 51,741
3-person families 55,103
4-person families 66,079
5-person families 60,809
6-person families 61,130
7-or-more-person families 64,035
Nebraska
2-person families 53,910
3-person families 62,689
4-person families 70,665
5-person families 69,390
6-person families 63,755
7-or-more-person families 62,753
Nevada
2-person families 58,558
3-person families 64,173
4-person families 71,230
5-person families 68,158
6-person families 64,481
7-or-more-person families 76,507
New Hampshire
2-person families 63,517
3-person families 79,031
4-person families 91,832
5-person families 90,875
6-person families 95,031
7-or-more-person families 102,942
New Jersey
2-person families 70,101
3-person families 84,721
4-person families 101,841
5-person families 102,051
6-person families 100,172
7-or-more-person families 92,037
New Mexico
2-person families 49,728
3-person families 51,177
4-person families 54,500
5-person families 55,513
6-person families 53,444
7-or-more-person families 51,727
New York
2-person families 57,279
3-person families 68,368
4-person families 82,531
5-person families 80,477
6-person families 76,248
7-or-more-person families 75,200
North Carolina
2-person families 51,016
3-person families 56,127
4-person families 67,966
5-person families 61,868
6-person families 54,488
7-or-more-person families 53,905
North Dakota
2-person families 53,979
3-person families 65,817
4-person families 74,177
5-person families 73,075
6-person families 68,804
7-or-more-person families 56,837
Ohio
2-person families 51,375
3-person families 60,787
4-person families 72,817
5-person families 70,115
6-person families 65,679
7-or-more-person families 60,553
Oklahoma
2-person families 49,960
3-person families 54,302
4-person families 61,881
5-person families 55,984
6-person families 53,752
7-or-more-person families 52,439
Oregon
2-person families 55,217
3-person families 60,900
4-person families 72,093
5-person families 65,949
6-person families 63,970
7-or-more-person families 64,887
Pennsylvania
2-person families 52,998
3-person families 66,998
4-person families 78,287
5-person families 76,702
6-person families 73,393
7-or-more-person families 68,027
Rhode Island
2-person families 59,422
3-person families 73,619
4-person families 87,669
5-person families 82,883
6-person families 82,289
7-or-more-person families 94,875
South Carolina
2-person families 50,062
3-person families 53,048
4-person families 64,228
5-person families 60,594
6-person families 57,143
7-or-more-person families 57,034
South Dakota
2-person families 52,173
3-person families 60,102
4-person families 68,064
5-person families 67,359
6-person families 62,617
7-or-more-person families 51,996
Tennessee
2-person families 47,802
3-person families 53,611
4-person families 63,480
5-person families 61,979
6-person families 58,091
7-or-more-person families 50,845
Texas
2-person families 54,466
3-person families 56,944
4-person families 65,508
5-person families 57,516
6-person families 53,534
7-or-more-person families 53,443
Utah
2-person families 56,173
3-person families 62,237
4-person families 70,322
5-person families 71,108
6-person families 77,238
7-or-more-person families 81,621
Vermont
2-person families 57,536
3-person families 64,789
4-person families 74,877
5-person families 73,548
6-person families 72,005
7-or-more-person families 64,203
Virginia
2-person families 63,986
3-person families 72,967
4-person families 85,546
5-person families 85,536
6-person families 81,887
7-or-more-person families 88,535
Washington
2-person families 62,939
3-person families 71,055
4-person families 81,788
5-person families 74,816
6-person families 70,834
7-or-more-person families 65,236
West Virginia
2-person families 42,365
3-person families 50,549
4-person families 58,739
5-person families 59,326
6-person families 53,367
7-or-more-person families 51,244
Wisconsin
2-person families 56,558
3-person families 66,774
4-person families 77,946
5-person families 75,347
6-person families 70,305
7-or-more-person families 62,008
Wyoming
2-person families 59,509
3-person families 67,006
4-person families 75,998
5-person families 76,195
6-person families 69,613
7-or-more-person families 69,466
What does this data reveal? Mainly, that the federal government should not have any influence in regards to individual personal finances. The federal government should not be allowed to regulate, control, nor to ban financial resources such as payday loans, because not all states (citizens) are equal in regards to finances. The citizens of some states have far dire needs for financial services than those of other states.
If; for example, a financial tragedy (perhaps unplanned auto repairs for their only vehicle) strikes a 7-person familiy in Arkansas which has an annual income average of only $44,307. If the government were to ban payday unsecured personal loans in that state, what would this poor family do? Stay home and miss work? Panhandle on the streets? One thing is for certain, the federal government isn't going to send them a mechanic free of charge, or with a line of credit for repairs.
The government claims they are looking after consumer interests, but what is the real reason why they want to ban; or control, payday loans? The cold, hard truth is that they disapprove of everything that doesn't line their pockets or help them get re-elected. Another problem is that most legislatures have no concept of what it is like to have a limited income. They have no real understanding of what it's like to be poor. They cannot comprehend why a low income family is unable to maintain an ample savings account to cover emergency expenses.
Only poor people; and those who truly understand economics, appreciate the value of payday unsecured loans. They help boost the economy by increasing cash-flow, and help consumers maintain and improve credit scores by being able to borrow money to pay bills on time, to repair work vehicles to remain employed, plus other factors which aid in the stability of the economy.
If you compare the average incomes of the states that allow payday loans, you'll see that many of those states have low-income citizens who find it difficult to set aside money for expenses other than day-to-day living.
These states ban payday loans:
Conneticut
District of Columbia (DC)
Georgia
Maine
Maryland
Massachusetts
New Hampshire
New Jersey
New York
North Carolina
Oregon
Pennsylvania
Vermont
West Virginia
State Median Family Income by Family Size (courtesy of Census.gov)
Alabama
2-person families 46,522
3-person families 53,262
4-person families 63,888
5-person families 60,906
6-person families 52,451
7-or-more-person families 51,116
Alaska
2-person families 72,832
3-person families 74,681
4-person families 86,515
5-person families 83,048
6-person families 93,194
7-or-more-person families 79,794
Arizona
2-person families 56,052
3-person families 60,904
4-person families 69,119
5-person families 60,192
6-person families 58,668
7-or-more-person families 56,922
Arkansas
2-person families 44,142
3-person families 48,886
4-person families 56,219
5-person families 49,744
6-person families 50,484
7-or-more-person families 44,307
California
2-person families 63,882
3-person families 69,478
4-person families 78,666
5-person families 67,304
6-person families 65,678
7-or-more-person families 72,296
Colorado
2-person families 64,431
3-person families 69,615
4-person families 80,717
5-person families 73,712
6-person families 68,159
7-or-more-person families 69,719
Connecticut
2-person families 70,941
3-person families 84,873
4-person families 102,127
5-person families 103,795
6-person families 97,098
7-or-more-person families 91,787
Delaware
2-person families 60,862
3-person families 71,139
4-person families 83,602
5-person families 79,813
6-person families 78,398
7-or-more-person families 72,586
District of Columbia
2-person families 74,536
3-person families 65,228
4-person families 69,558
5-person families 70,144
6-person families 54,132
7-or-more-person families 57,188
Florida
2-person families 51,578
3-person families 57,076
4-person families 67,705
5-person families 64,960
6-person families 60,725
7-or-more-person families 60,912
Georgia
2-person families 52,942
3-person families 58,713
4-person families 68,908
5-person families 62,838
6-person families 60,733
7-or-more-person families 57,077
Hawaii
2-person families 64,770
3-person families 73,834
4-person families 87,463
5-person families 85,574
6-person families 89,380
7-or-more-person families 110,632
Idaho
2-person families 50,182
3-person families 54,118
4-person families 62,079
5-person families 59,425
6-person families 54,973
7-or-more-person families 60,829
Illinois
2-person families 59,371
3-person families 69,332
4-person families 80,607
5-person families 75,286
6-person families 69,577
7-or-more-person families 70,952
Indiana
2-person families 51,604
3-person families 59,258
4-person families 69,434
5-person families 67,961
6-person families 64,971
7-or-more-person families 66,349
Iowa
2-person families 54,600
3-person families 63,453
4-person families 73,413
5-person families 70,836
6-person families 65,413
7-or-more-person families 60,881
Kansas
2-person families 56,705
3-person families 63,346
4-person families 71,842
5-person families 70,266
6-person families 62,005
7-or-more-person families 58,865
Kentucky
2-person families 44,876
3-person families 53,457
4-person families 63,825
5-person families 60,077
6-person families 57,136
7-or-more-person families 53,879
Louisiana
2-person families 46,591
3-person families 53,303
4-person families 66,109
5-person families 63,688
6-person families 58,026
7-or-more-person families 54,194
Maine
2-person families 51,054
3-person families 61,341
4-person families 68,237
5-person families 66,958
6-person families 72,023
7-or-more-person families 56,988
Maryland
2-person families 72,770
3-person families 84,594
4-person families 101,997
5-person families 99,828
6-person families 94,085
7-or-more-person families 92,476
Massachusetts
2-person families 67,167
3-person families 82,883
4-person families 100,058
5-person families 101,959
6-person families 99,953
7-or-more-person families 98,610
Michigan
2-person families 51,719
3-person families 61,078
4-person families 73,433
5-person families 71,352
6-person families 62,460
7-or-more-person families 56,003
Minnesota
2-person families 61,457
3-person families 74,371
4-person families 86,099
5-person families 83,143
6-person families 77,909
7-or-more-person families 64,201
Mississippi
2-person families 41,413
3-person families 46,121
4-person families 55,809
5-person families 50,139
6-person families 45,619
7-or-more-person families 43,614
Missouri
2-person families 50,771
3-person families 58,646
4-person families 70,232
5-person families 68,096
6-person families 67,134
7-or-more-person families 60,946
Montana
2-person families 51,741
3-person families 55,103
4-person families 66,079
5-person families 60,809
6-person families 61,130
7-or-more-person families 64,035
Nebraska
2-person families 53,910
3-person families 62,689
4-person families 70,665
5-person families 69,390
6-person families 63,755
7-or-more-person families 62,753
Nevada
2-person families 58,558
3-person families 64,173
4-person families 71,230
5-person families 68,158
6-person families 64,481
7-or-more-person families 76,507
New Hampshire
2-person families 63,517
3-person families 79,031
4-person families 91,832
5-person families 90,875
6-person families 95,031
7-or-more-person families 102,942
New Jersey
2-person families 70,101
3-person families 84,721
4-person families 101,841
5-person families 102,051
6-person families 100,172
7-or-more-person families 92,037
New Mexico
2-person families 49,728
3-person families 51,177
4-person families 54,500
5-person families 55,513
6-person families 53,444
7-or-more-person families 51,727
New York
2-person families 57,279
3-person families 68,368
4-person families 82,531
5-person families 80,477
6-person families 76,248
7-or-more-person families 75,200
North Carolina
2-person families 51,016
3-person families 56,127
4-person families 67,966
5-person families 61,868
6-person families 54,488
7-or-more-person families 53,905
North Dakota
2-person families 53,979
3-person families 65,817
4-person families 74,177
5-person families 73,075
6-person families 68,804
7-or-more-person families 56,837
Ohio
2-person families 51,375
3-person families 60,787
4-person families 72,817
5-person families 70,115
6-person families 65,679
7-or-more-person families 60,553
Oklahoma
2-person families 49,960
3-person families 54,302
4-person families 61,881
5-person families 55,984
6-person families 53,752
7-or-more-person families 52,439
Oregon
2-person families 55,217
3-person families 60,900
4-person families 72,093
5-person families 65,949
6-person families 63,970
7-or-more-person families 64,887
Pennsylvania
2-person families 52,998
3-person families 66,998
4-person families 78,287
5-person families 76,702
6-person families 73,393
7-or-more-person families 68,027
Rhode Island
2-person families 59,422
3-person families 73,619
4-person families 87,669
5-person families 82,883
6-person families 82,289
7-or-more-person families 94,875
South Carolina
2-person families 50,062
3-person families 53,048
4-person families 64,228
5-person families 60,594
6-person families 57,143
7-or-more-person families 57,034
South Dakota
2-person families 52,173
3-person families 60,102
4-person families 68,064
5-person families 67,359
6-person families 62,617
7-or-more-person families 51,996
Tennessee
2-person families 47,802
3-person families 53,611
4-person families 63,480
5-person families 61,979
6-person families 58,091
7-or-more-person families 50,845
Texas
2-person families 54,466
3-person families 56,944
4-person families 65,508
5-person families 57,516
6-person families 53,534
7-or-more-person families 53,443
Utah
2-person families 56,173
3-person families 62,237
4-person families 70,322
5-person families 71,108
6-person families 77,238
7-or-more-person families 81,621
Vermont
2-person families 57,536
3-person families 64,789
4-person families 74,877
5-person families 73,548
6-person families 72,005
7-or-more-person families 64,203
Virginia
2-person families 63,986
3-person families 72,967
4-person families 85,546
5-person families 85,536
6-person families 81,887
7-or-more-person families 88,535
Washington
2-person families 62,939
3-person families 71,055
4-person families 81,788
5-person families 74,816
6-person families 70,834
7-or-more-person families 65,236
West Virginia
2-person families 42,365
3-person families 50,549
4-person families 58,739
5-person families 59,326
6-person families 53,367
7-or-more-person families 51,244
Wisconsin
2-person families 56,558
3-person families 66,774
4-person families 77,946
5-person families 75,347
6-person families 70,305
7-or-more-person families 62,008
Wyoming
2-person families 59,509
3-person families 67,006
4-person families 75,998
5-person families 76,195
6-person families 69,613
7-or-more-person families 69,466
What does this data reveal? Mainly, that the federal government should not have any influence in regards to individual personal finances. The federal government should not be allowed to regulate, control, nor to ban financial resources such as payday loans, because not all states (citizens) are equal in regards to finances. The citizens of some states have far dire needs for financial services than those of other states.
If; for example, a financial tragedy (perhaps unplanned auto repairs for their only vehicle) strikes a 7-person familiy in Arkansas which has an annual income average of only $44,307. If the government were to ban payday unsecured personal loans in that state, what would this poor family do? Stay home and miss work? Panhandle on the streets? One thing is for certain, the federal government isn't going to send them a mechanic free of charge, or with a line of credit for repairs.
The government claims they are looking after consumer interests, but what is the real reason why they want to ban; or control, payday loans? The cold, hard truth is that they disapprove of everything that doesn't line their pockets or help them get re-elected. Another problem is that most legislatures have no concept of what it is like to have a limited income. They have no real understanding of what it's like to be poor. They cannot comprehend why a low income family is unable to maintain an ample savings account to cover emergency expenses.
Only poor people; and those who truly understand economics, appreciate the value of payday unsecured loans. They help boost the economy by increasing cash-flow, and help consumers maintain and improve credit scores by being able to borrow money to pay bills on time, to repair work vehicles to remain employed, plus other factors which aid in the stability of the economy.