Debt Management

Can You Be Addicted To Payday Loans?

I don’t condone or approve of the use of payday loans but I can see why people would use them.

 

Some people are just in the situation, where if they have an emergency, they need to get cash advances in order to get by.

I’m not really going to argue whether they are good or not but I do begin to wonder if they could be considered an addiction.

If someone comes to rely on them and feels like they can’t get by without them, are they addicted?

Trying to live without payday loans when you have been relying on them just to survive can seem impossible.

Doesn’t that seem like it’s an addiction?

I watch the show Intervention, which is about addiction to drugs, and the way people act ashamed for using drugs, yet can’t stop, seems like the same symptoms that people who are deep into payday loans have.

Think about it like this, a person addicted to drugs usually wants to stop but can’t because they don’t feel like they will be able to get clean. There are ways to get clean, but they just don’t want to take it or feel like it won’t work.

People that are deep into debt with payday loans feel like they have to keep using them to get by. Yet there are ways to get out of the cycle. But they feel like there is no other way or they don’t want to take any other way.

I’m really interested in this because if it is an addiction, then people that are constantly getting  payday loans should be flagged and offered help.

There’s no reason someone should go back week to week to get a payday loan. That just means there’s a problem and they need help.

I mean, if someone uses a drug once or twice a year you wouldn’t think that they need help, but if they used it every week then you would think they would.

I think payday loan companies can do good/be there for you in time of an emergency (They wouldn’t be my first choice), but I think they need to put in safeguards for serial loanees in order to be seen as less of a bad member of society.

What do you think?

Comments (8)

  • I don’t know if they get addicted but instead caught in the cycle of borrowing against a paycheck in advance and then being short to pay the bills once the reduced paycheck comes in.

    Reply
  • Isn’t this the definition of insanity? Doing the same thing over and over again and expecting a different result. Addiction may be an excuse, because the word indicate a medical reason.

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    • I don’t think a lot of people that use payday loans expect a different outcome. I think that you come to rely on it because it always helps the situation and there is easy access to it.

      Reply
  • Compared to the other alternatives such as overdraft charges, NSF charges, bounce check charges from the merchant, drama from the landlord, drama from the boss if your car breaks down and you can’t get to work, etc… sometimes it’s a necessary route. Remember, people have to have a job to get a payday loan.
    How do you compare it to a title loan where you borrow against your car?

    Reply
    • Well if the title loan doesn’t get you out of trouble then you probably won’t have a car for long. I would say a title loan is the worst decision you could make, no matter what. Not having a car these days can really hamper your money making efforts like a job.

      Reply
  • I believe Payday loans to be helpful if someone should need one to give them a little bit of extra money in a month. That’s what they are for. I don’t think people should use them on a monthly basis, I don’t think this means they are addicted, it’s just an easy way to get a little bit of extra cash compared to other ways.

    Reply
  • It is easy to become addicted to pay day loans. Like anything many people abuse the original intent of these loans. Lots of people have gambling problems and use these loans as a way to stay in the game.

    -Ravi Gupta

    Reply
  • It can be an addiction but i think if your financial situation is not the best and need a large sum of cash this is the only option. I lost my job in sept and had taken two payday loans to keep me afloat till i got approved for unemployment. Just paid the loans two weeks ago paying them down quicker than minimum payments. I dont approve of payday loans but it does help as a last resort. To avoid needing payday loans have an emergency fund 3-6months which i am trying to build with my unemployment check and then I when i find i job I plan to save a higher amount in case I lose my job in the future hopefully i wont need a payday loan.

    Reply

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