Saturday, June 23, 2012

Are Payday Loans That Bad??

I know most of you have seen the commercials for these pay day loans, maybe you thought, "OMG!! I am so sick of seeing this commercial!! Who would ever use this??" I know I often thought that, especially when I see famous people promoting these outrageous pay day loans, with the fine print at the bottom of the screen that simply flashes before your eyes.
The fees are astronomical, and I often wonder is it really worth all this hassle and is it worth all of the extra money needed to borrow such a small amount?? I would have to say, no, however, there are a few scenarios that I do believe, this is a good option. (Only if you know you can afford to pay this back under the loan terms!!)
I have been through several "scenarios" throughout my 20 years of being a mom, and back then when I first started, we didn't have these options. (At least not in my town). So, how did I get through it then? It sure wasn't easy, and belongings had to be sold, there were times when our jobs, even with 2 jobs or 3, were not going to be enough for that month, so more jobs were taken, and that sacrifice was rather brutal on lives and family.
These days, there doesn't seem to be much of an option to have even 1 job, much less 2, 3, or 4! So, what do you do when you have bills that are way overdue, shut off notices, car repairs, Little League fees and cleats to buy, food and laundry detergent, gas money, your washer stops working or worse, your fridge, and there isn't any extra money coming in, other then your paychecks, and it just keeps piling up and up and up???
I know when we have 1 thing go wrong here at our house, we can usually expect for something else to happen, and something else, and it just piles up, and causes a rather stressful situation. Just recently, we had a chimney dilemma, (luckily it is summer, otherwise this would have cost a few thousand), unexpected chimney bill $200.00, not real bad, but then, my husbands tractor trailer (we own our own, so we also own the trucks repair bills;), needed a clutch, after 6 weeks straight of other repairs, AND an ac that needed charged, then fixed, then charged again, AND while we are still paying bi weekly payments to the repair shop that overhauled the motor in January!! It doesn't stop there;) We now have a pick up truck in need of a transfer case, a cracked windshield, (have no idea how that happened, just made a loud noise one day, and started to spread),and then of course, there are the regular bills, and those annoying quarterly bills that always come due during these times. (water, sewer, trash, ash pick up) Everytime something new happens, I refigure the bills and check our income, of course the savings account has been taken down to almost 0 again, and we can usually figure out that we will get through it, it may be tough, but as long as nothing else happens, we will be good!!
But, what about a single income household? What about a single mom or a single dad? And what about the next thing that goes wrong or breaks that week?? What do you do?
Maybe call your parents for help? (We personally never have that option!!), a sister, brother, friend, (again, we don't have that option), do you go to your bank and get a loan? (sure, if you have some super good credit!!), do you sell stuff? (to who?? and what are you going to sell? Especially when it is a short term situation, and next month has 5 weeks, meaning an extra paycheck, which means... you can pay it back out of that extra check;) So, in some cases, maybe check out payday loans, just to see what they have to offer.
Payday loans are for short terms, and usually have very high fees. But, what I would do, is add up the shut off notices (the late fees, re connect fees), the bounced check fees, the late fees for your rent/mortgage, the money missed from calling off work due to no vehicle, or the bus, taxi, fees for you until the money comes in for the repairs. (and that's even if that is nearby, in our town, we don't have buses or taxis, so we are kind of on our own).
Chances are, the fees, re connect fees, lost wages, and whatever else may be included in your current situation, are going to cost more then a payday loan, and it's fees.
Am I telling you to go grab a payday loan asap?? NO. But, I am saying that payday loans are really not as bad as most think. If your peace of mind, stress levels, and family, are going to have a much better day because of one, then I do think it is a good thing. I also think they are good when you really are down and out, and it is nice to know that they are available and around.
I do not think they should be used for splurges, shopping, vacations, things of that nature. Since, you will be paying tons back, and it won't be worth it. (kind of like a credit card). But when your late fees, utility shut offs, and car or house repairs, are cutting into your well being, groceries, and other things that are basics in order to live, then yes, I would personally apply for a payday loan.
** This post IS my honest opinion, and I am linking to this specific site, because it is safe, AND there are no fees attached when searching for a proper payday loan**

1 comment:

  1. Great post you have here. A payday loan is an unsecured short term loan. This small loan is geared towards people who need a bit more money to get by until the next payday. A temporary solution yet a good way of solving a small problem.