by : Brian Williams

The market for loans is growing as more and more Americans find themselves in financial distress. The bad credit loan industry, in turn, is a powerful force in Washington and state capitols throughout the country, influencing how - and how much - you pay for their services.

Debt Companies Wield Political Influence

Payday lenders and credit card companies spend billions of dollars - dollars that come from hardworking Americans with money woes - getting their voices heard with lawmakers. Payday lenders contributed $8 million to candidates in statewide races from 1996 to 2006, according to MAPLight.org, an organization that studies money and politics. Finances and credit companies gave $21.4 million on lobbying, according to the Center for Responsive Politics, another research group on politics and money. The lending lobby has the muscle to influence politicians. A person with bad credit has very few advocates on Capitol Hill or in statehouses. There are various consumer watchdog groups, but their influence is dwarfed by lenders' financial resources.

Find An Advocate If You Are Mired In Bad Credit Loans

It is easy to put the credit card companies and pay lenders in a bad light. When people get behind on their credit card bills, the surly bill collector is on their heels, caustically demanding payment. People who fail to pay off a payday loan face exorbitant fees. Basically, credit card companies and payday lenders are businesses. Their aim - like everyday Americans - is to make as much money as they can. They have a substantial market and they cater to it. Payday lenders offer a service to people who are rejected for loans by traditional financial institutions, such as banks and credit unions. Nevertheless, financially savvy people know that payday loans and credit cards can pave a quick road to debt problems.

Debt settlement and debt consolidation are options that can be a deterrent to the bad credit loan cycle. Both methods take control of your financial situation and can combine your debts into one payment. People are encouraged to resist new lines of credit and live a debt-free life. Debt consolidation and debt settlement can act as a third party between you and your creditors. It is a better alternative to bankruptcy, a process where you would have to hire an attorney and sustain long-term damage to your credit score. Debt settlement can not only combine but reduce your debts, making them easier to pay off. The less you have to pay, the quicker you can become debt free. The advantages are beneficial:

• A payday loan's interest rates can top 300 percent


• Credit card interest rates can exceed 20 percent


• Multiple lines of credit have a negative impact on your credit score


• are an advance on your paycheck


• The short-term payday loans for small amounts are not worth the hassles that come with bad credit