2013 Official Scholarship Entrant

By: Chelsea Nungester

When a teenager first moves out on their own, they are often forced to face many new situations in which they most likely didn’t stop to think of, they  are often forced to face many new situations in which they most likely never stopped to think about. They have to maintain a commendable job to afford necessities like rent, bills, gas, schooling, and the ever so important food. They frequently find themselves becoming overwhelmed and frightened about not having enough money. Their first instinct is to normally go out and get a payday loan, there’s no harm in that right? They don’t stop to think about the way it actually works, the benefits, or the disadvantages of this. So, do payday loans truly work? Or do they normally just end up making things worse for themselves in the long run?

Payday loans seem like a good idea, you go in needing money, come out with an overflowing wallet. How does this really work though? Most Payday lenders require that the borrower must be able to prove some form of verification of of employment, or in some cases a source of income. Some types of authentication could be considered bank statements or pay stubs. Once you are able to properly validate a source of income, the lenders should give you a small “advance” on your paycheck. On your next payday you pay the lender back in full, plus interest of course. Some lenders may decide to have you leave a written check with your final payment. When it is time to pay the lenders back, you would have the choice to either go in personally and pay the due amount or have them go ahead and cash your check you had previously left with them. If you do decide to have them cash it themselves, always check your bank account’s balance first. That is always very important to do when dealing with payday loans or just checks in general. The reason why it is so vital is because your funds happen to be too low, you begin facing another problem entirely of it’s own- bounced checks. Then the lenders aren’t receiving their money and the bank is charging you fees. Always be careful when dealing with money in your accounts!

Okay now here comes the really fun part we’ve all been waiting for-talking about the benefits! If something horrendous and expensive happens unexpectedly, but you don’t have funds to afford it, you’re in trouble. So what are your options? Would you rather sell your prized possessions, just don’t worry about handling the situation, go without something like food, or just simply walk into the nearest place with payday loans and get the money you’re desperately needing? You’re probably sitting there thinking about picking the last option like a lot of other people, correct? It’s so simple. Just walk in, give them a check, and receive your money. You’re able to go out and buy what you really need! The most convenient thing about payday loans is that you don’t even have to give a valid excuse on why you need the money. You just step right on in and tell them that you would like one. Its as easy as that! No wonder so many people want to use payday loans. When you see it from that point of view, it doesn’t seem that confusing now do it?

Time for the part that most people dread, The part where we begin disparaging “easy money”. I mean, let’s face it. Is there really such a thing as “easy money”? It really is quite simple to just walk in and receive the money. The main question is, does it actually work? If you perilously need the money at that particular moment and you have no other options then go ahead (as long as you only use this once or twice and you pay back on time). Always be aware of the risks. If you’re using this because you just can’t afford everything you’ve been paying, I wouldn’t suggest it. You wont be able to pay back the interest, and you’ll just put yourself in more debt. All of the money you owe will eventually catch up to you and you wont be able to pay it. It will just continue to add up. For every $100 you borrow, you’ll end up having to pay back about an extra $15-25. I mean, you can always ask for a deadline, but that of course gives you more interest. You could end up paying more than you actually borrowed after too long!

So, if you’re getting ready to take out a payday loan, think it all the way through first. If it’s for short term make sure that you have enough money to pay it back on time. If its for long term relief, then your best bet is just avoid them and find another way. In the end, you could just end losing more money. Any time you make any decision, always think it out. Once you add money into the equation, make sure to think out each and every single other option. You could end up helping yourself out just by avoiding these.

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