Many of us think of online payday loan services or cash advance services as a legal form of loan sharking when we think of these places. But that's not true at all. Each person has to take full responsibility for their own money and use these services for what they're meant for: emergencies.
The number of people taking out payday loans is growing at an alarming rate. We may wonder why this is happening, and the answer lies with our banks. Banks are quick to offer credit lines, credit cards, and personal loans, but if you go over your credit limit, they won't help you because you're now a credit risk.
Banks should be more responsible and, in my opinion, should have separate departments that help people who get into debt trouble and work with them to get them back on track financially. This is the main reason why there are more online loan and payday service companies than ever before.
We can't criticise these fast cash services because they're meeting a need that banks won't. When the banks see what happens, they play the "I told you so" card. When it's easy to get a paycheck advance, you might think that if you get into financial trouble, someone will come to your rescue right away. This makes your debt spiral into a financial vortex.
If you're responsible enough to know that this service is only temporary, you shouldn't have any problems. However, if you don't plan to pay back the loan, it will get very expensive and your debt will only grow over time. The interest on loans is very high, and there is a good reason for this.
These local and online advance companies are not banks. They don't get as much business or have the same financial security as banks, so they have to charge high fees and interest rates to stay in business. Keep in mind that a payday service is taking a risk, and that risk is high when people contact them online or go to their store to get a loan against their future paychecks.
What I don't understand is why the news loves stories about people who say they're being ripped off. The news eats up these stories and, of course, stretches the truth. Whether you apply for a payday loan online or at a store near you, you have to read the contract you sign and understand its terms and conditions, just like with any other business. I'm sure that if you read their contracts, they spell out what you need to do to get a loan and what fees and charges you'll have to pay if you don't pay on time or if you miss a payment.
We need to take responsibility for what we've done and figure out why we're in financial trouble in the first place. We also need to stop blaming the companies that are there to help us in times of need. That's why there are loan advances: to help you when you don't know where to turn in an emergency.
If you used this service the way it was meant to be used, a lot of people wouldn't say that the companies ripped them off or that the service was only there to make money off of them. Because, in reality, they are in business to make money, and as long as people are responsible for their own actions, these loan advance services wouldn't have such a bad name.
It's hard for me to give honest opinions, but family members are the only ones who can do it without worrying about hurting your feelings. When you have a lot of debt, you go into survival mode and try to figure out how to get out of it from every angle. You don't feel good about yourself and have low self-esteem when money is tight.
You should talk to your family and friends about what's going on and see if they can help you. If you think they can't help you, talk to your banks and negotiate with sincerity and the goal of getting out of debt. If nothing else works, you can go to a local or online payday loan service, whichever makes you feel more comfortable, and look into a cash advance that will get you out of your situation. But remember that this is only for a short time, and you need to make a plan for your money.
I'm sure that getting a loan from a payday loan company is a great choice. But make sure you know how to pay it back and look for help right away, whether it's debt counselling or someone with experience who can help you come up with a plan to lower and eventually get rid of your debt and rebuild your credit score.
If you're looking for an online lender, I suggest you read the second part of this article. It goes into more detail about how to find payday services on the Internet, how they work, and what you need to do to get the money you need in an emergency. You can click on the link in my Author Bio, where it says "Online Payday Loan Services, Part 2."
