For a few years now we have been hearing about how the Great Recession has finally come to an end, and that complete economic recovery is in the very near future. While this may be true for a lot of folks, many families in Arizona are still having some very rough financial times.

Poor decisions from local elected leaders have made it almost impossible for some of the hardest working people to get by from one week to the next. Some households are having such intense financial problems, that some have to borrow money to take care of everyday expenses and monthly bills. This can become problematic for people who find themselves borrowing too much and too frequently. Regardless of whether people are borrowing from family members or running up credit cards to pay bills, the ongoing cycle of household debt in Arizona is leading to serious financial instability for thousands.

banking loan, or cash conceptThis is why Arizona has to take steps to approve more legal lending options for people who have credit issues. There are lots of other states that have a lot more consumer lending options available for people who need to borrow money to make ends meet. Even states like California, which is known for being very regulatory-friendly, has more consuming options available than Arizona currently does. The newly introduced House Bill 2611 is set to take this problem on. This bill would allow flex loans of up to $3,000 for people who demonstrate that they have the ability to pay the loan off. Other states allow flex loans, with the average loan being for roughly $1,000 and most of these loans are typically paid off within just a few months.

Along with payday loans and other types of short term loans, flex loans can help to fill the gap for people who simply do not have the means to borrow lots of money from their local bank branches. Flex loans can allow hard working families to get money for emergency expenses, without putting too much debt on their shoulders. As everyone already knows, mainstream banks do not make smaller dollar, shorter term loans. And those same banks pretty much ignore anyone who does not have a high credit score. The fact of the matter is that people need to have options to borrow money if they are going to get ahead financially in the future.

Why is a state that is so business friendly, like Arizona, putting restrictions in place when it comes to borrowing options for its citizens? Competition in the lending industry is good for the industry and good for people who are struggling to get by. The main reason that so many people are opposed to any type of short term loan is because they perceive that taking out these kinds of loans ultimately leads toward long term bad financial decision making.

All the evidence, however points in the opposite direction. There have been several studies conducted that prove that short term lending does not necessarily lead to borrowers making bad financial decisions. It has been proven that demand for loans does not decrease when people have easy access to short term loans and other easy to get lines of credit. Instead the moves to ban short term loans drive borrowers to make bad financial decisions, like putting up their car titles to get fast cash. We all need to step up to the plate to ensure that people have access to short term loans if we want to see Arizona households to enjoy the financial recovery that is being experienced in other states throughout the country.

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