Too often, fast payday loans are deemed the bad guy in the lending industry. In fact, their continued growth within the financial world speaks a different tune. These fast cash loans fill a void for many folks who struggle to make ends meet when their bank accounts are low on funds. People who use short-term loans to get over a hump before the next payday find the loans useful and cost effective. Why do so many argue that the loans are bad?
When borrowers apply for a payday loan to fund an immediate payment, they are looking for emergency help without much thought towards the payoff. Because the loans have short term periods, the full payoff is due just a few short weeks later. Without a payoff plan in place at the get-go, people end up scrambling to make their payments. Many people who do apply for these loans are already in some sort of financial mess and have little to no credit card balance available. Payday loan lender debt just adds to the problem. It is important no matter what third party money is used, have a payoff plan set in motions to prevent debt from eating away at your income.
The borrower sits in disbelief that this small loan is wreaking so much havoc in their budget. The complaints begin. It must be the lender’s fault, right? If the lender acted responsibly and didn’t attach hidden fees, misrepresent their services and answered all questions to explain the process then they are not to blame. This service filled a void to credit challenged applicants. How can you blame payday loan help when the borrower didn’t help themselves think about how they could afford the pay off? Just because a company offers opportunity at a price, it doesn’t mean you have to accept. Maybe that is what happened to their credit cards? Now, there is more debt to pay and the same static income to pay it off. Of course there are going to be problems.
How can you argue that a payday loan was bad when it helped you make an emergency payment? The terms and conditions were presented before money is processed. A borrower must sign as proof that they accept them. Is it possible that a borrower can be blamed for making a loan go bad? Is it the short-term loan the toxic part of their finances or is it their lack of money management? It is safe to say that if a person has great money management skills, they would not be looking to find a payday loan lender to cover emergency payments. If for some reason they did, that payoff would have a dedicated payoff plan attached to it. It just makes sense. High interest loans should be the first to get paid in anyone’s budget.
How can you blame a payday loan company when the fast money helped? If for some reason you did fall prey to a predatory lender or caught up with a fraudulent lender, you can certainly point the finger. This is why it is so important to do your homework before you apply. You can walk into the store or call the lender directly to ask questions about their lending practices before you ever touch an application. Keep a positive mindset when working with the lender. The prices may be high, but they are providing a service that most others would not offer you. You decide if the loan is affordable to you or not. A good lender will do their best to determine your situation based on the small amount of information presented to them. You know what your limits are. If you are going to push those limits, then you run the risk of adding trouble to your budget. It’s ultimately up to you to decide. It’s tough to blame the lender or argue that the rates are too high when you have already used their fast cash loan to fix an earlier problem. Remember that you needed that lender to help when nothing else would. It’s a tough lesson to learn, but it may help you make better choices in the future.