Why You Shouldn’t Take Out Payday Loans
Contrary to popular belief, people on limited or fixed income often know of the troubles high interest payday loans can lead to. This still doesn’t mean they won’t take the personal cash advance because quite simply they don’t have any other options for money. The biggest problem is when borrowing is done to meet unnecessary purchases. A paycheck advance should only be taken by someone that is in absolute need of the money for fear of worse repercussions but even then, it may not be worth it.
For example, if someone borrows a short term loan to pay apartment rent but knows they most likely will not have the money to both repay the next month’s rent and the loan plus interest accrued on the quick paycheck advance, the borrower may be better off leaving the apartment because of insufficient funds if the alternative is the same result only with a perpetually growing cash advance rolled into other new advanced cash. Personal loans from payday stores can rapidly snowball and grow out of control leaving the borrower not only broke but in severe debt. It’s better to have no money than to owe money. This is particularly true with IRS wage garnishments where you get money taken out of your paycheck before you even get it.
The solution of not borrowing to begin with sounds easy but living it is not. Therefore, I want to offer some money saving advice for those struggling to consider. First, if you’re short on money, try consolidating resources with family members or friends you trust. Obviously, this won’t be convenient but offering to split costs on carpooling and sharing an apartment or home (rent) can help you save money. If you don’t have money to offer in exchange for shelter or services, try offering help on home improvement such as mowing, painting, cleaning, or other tasks like picking up groceries, babysitting kids, or washing cars. If you have a particular skill set, talent or trade such as car repair or ac repair, put this to use.
In addition to possible consolidation services, always be on the lookout for potential ways to earn more money. Don’t wait for opportunities to come to you, go find them in the community. If you aren’t working or only part-time, try going below market value on some odd-jobs or quick jobs in your local area. If you do a good job, people will recognize this and word will get out that you are a hardworking person that provides reputable work. Eventually, others will recommend you or seek you out for jobs they have.
Paycheck loans are sometimes a necessary evil, but make sure it is absolutely necessary that you get a small personal loan cash advance before borrowing and even then, only take out the bare minimum you need. Quick advances on your paycheck are only convenient until you have to pay them back.