I've previously discussed my tawdry affair with Payday Loans, but I didn't fully explain what they are, how they helped and why they are meant to be a short term solution. Payday Loan, it’s like another payday in between your paydays. It's a credit check free, high interest loan that is to be paid in full on your next payday. It’s not a loan that is extended over time (necessarily), it’s a loan that is there to help you when you’re in a crunch and then pay it back and your done!
No credit checks, awesome, high interest, yikes. If I remember correctly, I used to get a $500 loan with an interest fee of $150. How do they ensure that they will receive their money back? You hand them a check made out to them, with the amount that you'll owe and they hold onto that check until you come back and pay them, should you not pay them, guess what, they'll deposit that check, plus you are bound by a contract which you'll have to sign before they hand over that big wad of cash... The catch is...Come my next payday, not only be out of the $150 interest fee, I'd have to pay my account off in full. This of course left my purse a little light. So if you're wondering, yes, the process for me almost always continued. I'd get another $500 loan, I'd have to pay $650 later, so what am I still out of? $150... And should you continue this process, you're going to end up losing a lot of money, because with a $150 finance fee each time, it really adds up.
So why get a payday loan? Some people use them frivolously, and some people have a genuine need, the genuine need folks don't fall victim to the repetitive cycle and the frivolous one's get stuck with this bad habit for a very long time, they pass it on to their friends and families and then it's like being sucked into a big, deep, dark, black vortex. Why am I sharing all of this? It’s not just because my post is sponsored, but in order for me to accept a blissful financial future, I have to acknowledge the despicable past as well. Listen, I'm not saying that payday loans are good/bad or that you should/shouldn't get one, but what I am saying is know the benefits and know the consequences. I realize that the payday loan rules and laws may have changed, but again, you do have to consider if these changes are a benefit to you (the consumer) or the bank that is fronting you the cash.
All in all, we do what we have to do to make it, and that is what makes the payday loan a benefit and a very fruitful business right? You've got to put it out there, I'm just being honest. Click "cash resource" for more information.
Do you have any financial splendors or financial blunders? Please share them in the comment section below, I'd love to hear what others have experienced.
*** Though this post is sponsored by Paydayloans.org.uk, all ideas and opinions expressed are my own. ***
Until Next time,