Payday loan companies are banks for poor people. They cash your checks, make money orders; you can even pay your bills there. Some of these places will help you with your taxes and even set you up with a prepaid visa card.
The downside is that all of these things cost money. But that’s the point of business, to make money. You can’t really fault them for that. They do charge a high interest rate, if you change their fees to an APR. But apparently it’s not too high, because people are using them and their business is growing.
The point of these companies is to cover you in case something happens in life and you need emergency cash loans to help you until the next paycheck. For instance, if you have a flat tire, or have to go to the doctor because you get sick. If they didn’t help these people, how would they get by that week?
They basically act like an emergency fund. Well, an emergency fund that costs you money. But it costs money to be poor, so you have to live with that.
They do a great thing that doesn’t help all of their customers, but it does help a few. What they do is help you realize that you need to change your life. They help you to think how you can get out of the lifestyle of having them call you everyday to get their money. They cause you to seek knowledge about getting your finances in order. The problem is that all of their customers don’t gain that knowledge. They prefer to think that’s the way of life and wallow in their sorrow.
The point of this post is to take the blame off of payday loan companies. It’s not their fault you choose to not become financially aware. Yea, they are seedy and pray on the weak, but if they didn’t, someone else would.
If you don’t want to use a payday loan, then set your own up. Start saving a little money each week and then when you need to borrow some money from it, charge yourself a fee. There you go, problem solved. Of course it’s not that simple, you first have to get control of your finances so that you have some money to start saving. That combination will keep you from using a payday loan company. Or you can use a charity like Modest Needs to help you out.
The point is, what people need to do is start becoming aware of their financial habits and change them for the better. If I may borrow some lyrics from the great Bon Jovi, you need to say to yourself “It’s my life, it’s now or never.” Start learning today and change your life.
So what do you think?