There are a lot of articles out there about payday loans, and the truth is that most of the articles take sides. Payday loans are either the best thing since sliced bread, or they’re the most evil thing that ever came to the world. The reality is that payday loans are just another way to solve a problem. In other words, payday loans are tools. Tools are neutral devices. They are neither good nor bad. It’s what we do with payday loans that make a difference.
A lot of guides say that you should avoid them if you can help it. However, when you step back and realize that the majority of payday loans are taken out because of a financial crisis, and then the advice becomes quite hollow, doesn’t it? After all, who can really plan an emergency? The very nature of the word means that it’s something that comes out of nowhere. There will be a point in time where you need money quickly, and there aren’t any other sources that can accommodate you. You will just need to look at your options.
Sure, you can go to your friends and family, but this creates resentment over time. People are very defensive about their money and for good reason — they’ve worked for it. Even if they happen to have savings, that represents money that’s earmarked for their own needs. They’ve probably got their own plan for the money, and then you come along needing a loan. Once or twice might be okay, but if you constantly have emergencies coming up, you’re going to have to find another source to get the money from. You don’t want to find yourself being stuck between a rock and a hard place.
In the past, most people had to go to a check cashing place offline in order to get considered for a payday loan. Thankfully, those days are over. Given the attitude that many people report having experienced in those places, the online payday loan world is a lot better.
The point is that you have to look at all of these things from a logic-oriented perspective. Sure, you are probably in a position where a payday loan is necessary, but it doesn’t have to be an unpleasant experience. These days, if you don’t want to interact with people you definitely don’t have to. You can just stay to yourself and not even bother with anyone. If that’s what you want, then the Internet is the best place to go for your payday loan. No longer do you have to worry about whether or not you’re going to get approved. Usually if you have a steady income — even if it’s from a government source like SSI — and a checking account, you’re going to get approved. The checking account is to make sure that the payday loan company actually gets their money. You don’t want to find yourself being unable to pay back the loan if you can help it — that’s where a lot of the fees and penalties really start kicking in.
Why is the interest on such a short term loan so unbelievably high? That’s because of the nature of the loan. Because virtually anyone can be approved and the average applicant has substandard credit, there is some risk on the payday loan company’s behalf. They have to make sure that they are going to get a return on their investment and services, hence why the interest rate is so high.
If you’re in the position where you have to get a payday loan, it’s very important that you pay it back as soon as possible. Then, once the emergency is over, you need to start thinking about a plan to save up some money so that you do not constantly have to take out money.
You also want to make sure that you’re taking out payday loans for the right reasons. It can be tempting to get a payday loan to cover the gaps so you can shop for nice things, or buy something unnecessary. Just remember — it is indeed a loan that you will need to pay back, so make sure that you plan accordingly — good luck!