Payday loans are not demons, as some institutions rush to label them. They do cause some individuals to fall deeper into debt, but when used properly, they provide short-term relief to those who may need some help. The issues happen when payday lenders abuse their loaning privileges or borrowers use the service as a source of income. These issues occur so often that some areas of the country feel a need to step in and help remedy the problem.

Michigan credit unions

Some of Michigan’s credit unions are offering their services as alternatives to the traditional payday loans, but the rates on the credit union options are comparable to the payday loans. Individuals find themselves in the same situation through the credit unions as they do through the payday lenders.

Michigan financial institutions and lawmakers are tired of the roundabout debt caused by those who abuse the system. However, Michigan is attempting to regulate the amount of debt accrued by those who buy into these services. Michigan has begun to hold credit unions accountable for the loans distributed to low-income borrowers. Credit unions have answered by offering members special credit services in conjunction with the loans.

Borrowers of Michigan’s credit unions have the option to explore financial fitness courses. Included in the courses are tips on saving, tips on borrowing and classes on financial planning for the future. These are not sales courses to encourage Michigan’s citizens to become credit union members. These are courses offered to existing members who need help dealing with the monster called finance.

The state of Michigan has caught on to a brilliant idea. Those who still feel the desire to acquire a payday loan will be educated on the process. One of the biggest reasons that people fall into a cycle of continuous debt with payday loans is because they have not had financial education available to them. Michigan’s credit unions are remedying this situation and helping those in debt find a light at the end of the dark tunnel.

Payday loans don’t have to be bad investments, but they do need to be smart investments. Individuals seeking any type of loan need to research options and make sure the ability to pay back the loan exists. A number of people who seek payday loans are in desperate situations and will grab the first available option, which isn’t always the best. Michigan has made it possible, with easy to join credit unions, to educate the population on how to best use a payday loan.

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