If you pay any attention to the hype surrounding payday loans, you will notice that there are two sides to the story – one side will be praising all the positive attributes of a payday loan while the other side will be focusing on all the negative aspects of a payday loan. So which is it, really? What is the real deal? Do payday loans and debt go together?
Well, if you want to be a smarty pants about it, the obvious answer is yes – by the very term itself, a loan means that you are borrowing money. That means you have debt, you are indebted to someone, namely the payday loan provider. Yet in the real sense, this question is asked with the idea that if you take out a payday loan, you will be in financial trouble – you will have debt problems.
This is where I have a problem. I think that it is being narrow minded and not fair to immediately assume that people who take out payday loans will find themselves mired deep in debt problems. This assumption is just not true and could be deemed ridiculous , in fact! It is indeed true that payday loans have both the good and the bad side. Yet isn’t it the same for every other thing in this world?
So why all this hullabaloo about payday loans and debt problems? This arises from many different factors that have blended together:
-Mismanagement of one’s finances in general – and not just payday loans.
When people do not have a solid financial logic, then even when they are bailed out of temporary financial trouble by a payday loan, the chances are that they will go back to the same situation soon enough. It could be that they take advantage of payday loans and this could compound their debt problem.
-Payday loans can be relatively expensive. The do not charge interest in the same way that conventional loans do. They charge a fee for every certain amount borrowed. This could be a little bit more expensive than conventional loans. If, coupled with mismanagement of one’s finances, a payday loan gets out of hand, then an individual would surely face debt problems of another kind.
-Payday loans are easy to acquire. This fact makes it easier for people to take out one payday loan after the other, or even several payday loans at the same time. This actually falls under mismanagement of one’s finances – made easier by the convenience of payday loans.
The bottom line is this – a payday loan is not an inherent source debt problems. It is meant to solve temporary cash shortages, temporary financial problems. It is not meant to be the default solution to everyday cash problems. If used properly and managed wisely, a payday loan will meet your needs when you need it and not give you additional debt concerns.
So it all boils down to the person, really. The decision is solely yours to make, your actions solely yours to be responsible for. Be a wise borrower and make use of financial resources (such as payday loans) to your advantage.
Published at : http://www.e-paydayloan.co.uk/blog/2008/02/04/payday-loans-and-debt/
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