Who Uses Payday Loans?
- By Michael New Jr.
- Published 07/21/2008
- Loans
- Unrated
Michael New Jr.
Michael New Jr. is an authority in the financial industry. He has written hundreds of articles relating to consumer services and Payday Loans. Contact Info: Michael New Jr. (866)294-4672 miken@checkcity.com http://www.checkcity.com
View all articles by Michael New Jr.
I am an average person. My spouse and I have an average home and make an average income. We are raising our family and sometimes go from paycheck to paycheck with not much room for urgent financial situations.
My car has recently sprung a coolant leak and has had an unidentifiable oil leak for some time now. I just noticed the other day that my credit card balance is now over the limit and I have fees on top of my usual payment. I will not be able to make a payment for about 7 days and have been ignoring my phone when it rings because I know it is my creditor.
Then suddenly the light goes on! With a payday loan, I will be able to get money in 24 hours or less, make my payment, get my creditor off my back and then be able to pay the fast cash loan back in one week. And while I'm at it, I may as well get a couple hundred extra to get my car taken care of now.
This is just one real life example of how a payday loan can come in handy. You don't need to be destitute or low income to take advantage of this opportunity. You can be rich, poor, or somewhere in between. These loans are meant to ease the stress of financial burdens that come up suddenly.
I do not recommend getting into the habit of payday loans as an easy way out, or to buy something new just for the thrill of it. These loans can cost you lots more money in the long run for interest if you borrow too much or too often or cannot pay them back within your designated term.
The industry is here to help and yes, they do make money off of borrowers but they DO NOT take advantage of people. There are critics out there that say these companies take advantage of low income people and exploit their already tight financial means.
Cash advance companies are usually very clear what is involved in a loan and let the customer know that it needs to be paid back in a short amount of time to avoid more fees and interest.
The reason that these companies are still in business even when legislature frowns upon them, is because they are so much easier to get a loan from than a bank!
Not only do you not have to wait nearly as long, there is not half as much paperwork to fill out. The money comes so quickly, you almost don't know what to do with it.
Let me go over again the key points of a payday loan:
1. They are meant to be short term.
2. Don't borrow more than you need.
3. Research a company before signing with them.
4. Know your states laws regarding loans as you will be able to spot a scam if you run into one.
5. Use only in urgent or emergent situations to ease the stress.
My car has recently sprung a coolant leak and has had an unidentifiable oil leak for some time now. I just noticed the other day that my credit card balance is now over the limit and I have fees on top of my usual payment. I will not be able to make a payment for about 7 days and have been ignoring my phone when it rings because I know it is my creditor.
Then suddenly the light goes on! With a payday loan, I will be able to get money in 24 hours or less, make my payment, get my creditor off my back and then be able to pay the fast cash loan back in one week. And while I'm at it, I may as well get a couple hundred extra to get my car taken care of now.
This is just one real life example of how a payday loan can come in handy. You don't need to be destitute or low income to take advantage of this opportunity. You can be rich, poor, or somewhere in between. These loans are meant to ease the stress of financial burdens that come up suddenly.
I do not recommend getting into the habit of payday loans as an easy way out, or to buy something new just for the thrill of it. These loans can cost you lots more money in the long run for interest if you borrow too much or too often or cannot pay them back within your designated term.
The industry is here to help and yes, they do make money off of borrowers but they DO NOT take advantage of people. There are critics out there that say these companies take advantage of low income people and exploit their already tight financial means.
Cash advance companies are usually very clear what is involved in a loan and let the customer know that it needs to be paid back in a short amount of time to avoid more fees and interest.
The reason that these companies are still in business even when legislature frowns upon them, is because they are so much easier to get a loan from than a bank!
Not only do you not have to wait nearly as long, there is not half as much paperwork to fill out. The money comes so quickly, you almost don't know what to do with it.
Let me go over again the key points of a payday loan:
1. They are meant to be short term.
2. Don't borrow more than you need.
3. Research a company before signing with them.
4. Know your states laws regarding loans as you will be able to spot a scam if you run into one.
5. Use only in urgent or emergent situations to ease the stress.