National Payday 2013 Entry

By: Krista Coffell

There’s many different opinons about payday loans. Some people think they’re good ideas, but others think they’re awful. In my opinion, they aren’t a very good idea. Sometimes you may need to get a loan to pay off a bill, or to pay for something important, but once you use that money you’ll have to pay it back. Plus interest rate, which can add up very quickly!

These loans are for if you won’t get your check quick enough at work and you need extra money.  You get them from your business, not a bank. Banks do offer something similar to a payday loan, though, but the interest rates are much, much lower. Some of these interest rates go up to four-hundred percent! Customers can become very reliant on these because they get to where they can’t pay anything off and need to keep borrowing money. When in reality, it just puts them more into debt because of the outrageous interest rates. Getting a payday loan is very much like having late charges all the time; you never get them paid off, and they keep adding up. An example is if you are a little short of money at the end of the month after paying your bills, you go get a loan for one-hundred dollars. You pay your bills, and pay back the one-hundred dollars a couple weeks later, or just whenever you get paid again. Now, though, you have to add fifteen dollars to that because of the interest rate. So, now the amount you pay back is one-hundred and fifteen dollars. Fifteen dollars doesn’t seem like much does it? No, but it sure can add up after a while!

Obviously, the interest rates grow greater with the bigger amount of money you borrow. Some reasons that people use payday loans are because businesses don’t run credit checks, and they don’t require a down payment. You also get your money anywhere from a couple hours, to a couple of days. People look at these as advantages, but they don’t look at the negatives to getting a payday loan. Another thing to look out for if you have to get a loan is if you get approved for one, many companies will offer you a lot more money than you originally asked for. This is a way for you to get into a huge mess, so make sure to read through everything when applying for one. Again, if you just HAVE to get a payday loan for an emergency, make sure you pick the right company that is willing to be there and help you out. Not having enough money is very stressful, so picking a company that could help take some of that stress off you would be a great idea.

To be approved for a loan, you need very little information, and they don’t even check your credit status. You need: a checking account, identification of who you are, and proof that you have a job and are receiving money from a business. As I said before, there’s different amounts of interest you have to pay.

As you can see, payday loans have a lot of advantages and disadvantages. For me, if I needed money I would just borrow from a family member or a close friend. That way you won’t have to pay back any pesky interest rates. So, basically I wouldn’t use one. Anyway I look at it, they’re just a bad idea and I don’t think anyone should use them unless there’s just no where else to turn. People just need to use their better judgment, and they know if they really need to borrow that money or not. It’s always a tough situation when it comes to having to borrow money, but you always need to inspect every aspect of what you can do, and always read the fine print if you’re considering a payday loan!

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