Payday loans are growing in alarming numbers, and we may be asking why this is happening, and the answers fall on our banking institution. The banks are quick to offer you credit lines, cards, and personal loans, but when you happen to over-extend your credit line, they don’t want help you, because you’re now a credit risk.
Banking institutions should take more responsibility, and in my opinion should have independent departments that assist people who get themselves into debt trouble, and work with them to get you back on financial track. This is the major reason online loan and payday services are popping up in record numbers to fill this desperate need.
We can’t criticize these fast cash services, because they’re filling demand that banks won’t; in the process the bank witnesses the outcome, and they play the “I told you so” card. When you can easily get an advance on your paycheck, it leads to the sensation that whenever you get into financial trouble someone will bail you out instantly, causing your debt to spiral into a financial vortex.
If you’re responsible enough to understand that this service is temporary, you should have no issues, but when you know that you’re not going to repay that loan, then it will become very costly and your debt will only increase over time. Loan interest is set very high, and for a good reason.
These local and online advance companies are not banks, and they don’t have the volume of business and financial security financial banking institutions have, so they have to charge expensive fees, and high interest rates to stay in business. Keep in mind a payday service is taking a risk, and the risk is high when people contact them online, or enter their establishment to get a loan against their future paychecks.
What I don’t understand is, the media jumps on stories of individuals that are complaining that they’re getting ripped off, and the news eats this story up, and of course over-inflate the facts. Whether you fill out the cash application online or at your local retail payday loan store, just like any other business you have to read the contract you sign, and understand their terms and conditions. I’m sure if you read their contracts, they stipulate the application requirements, and also indicate what fees and charges are going to accumulate if you default on payment, or do not pay the loan off in a timely manner.
We have to take responsibility for our actions, and understand why we are in financial trouble to begin with, and stop blaming the companies that are there to help you during emergencies. That’s what loan advances are there for, to help you during a time when you just don’t know where to turn in an emergency.
If you treat this service the way it’s intended, many people would not be complaining about the companies ripping them off, or complaining about the service only being there to make money off you. Because in reality, that is the reason they’re in business, to make money, and as long as people are taking responsibility for their own actions, these loan advance services would not get such a bad reputation.
It’s hard for me to give tough opinions, but just like family members, they’re the only ones that can give it to you straight up without being worried about offending you. When you’re in serious debt, you go into survival mode, and you think of every angle to get out of financial trouble because you don’t feel good about yourself, and your self-esteem is low during bad financial times.
You have to talk to your family and friends and let them know what situation you’re in, and see if they can help you. If you feel that they can’t do anything for you, talk to your banks and negotiate with true honesty and intentions to clean your debt up. If all else fails, then you can turn to your local or online payday loan services, whichever makes you more comfortable, and look into a cash advance that will get you out of your situation. However, keep in mind that this only temporary, and you have to develop a financial plan.
I strongly believe that borrowing money from payday loan companies is a great option. However, be sure that you understand the repayment requirements, and that you immediately look into getting help, whether it be debt counselling, or someone with experience that can help you develop a financial plan to lower and eventually eliminate your debt, and re-establish your credit rating.