National Payday Scholarship 2012 Official Entry SealBy: Cady McNerney

It takes a lot to succeed in the real world.  An education, good career, safe home, and decent car are just some of the things that contribute to a well-functioning adult in our society.  But how do we get there?  Besides determination and hard work, it takes money.  Without money, hopes of college slip away, opportunities in good careers fade into nothing, the list of houses you can purchase becomes short, and forget about the car.  Where can we get the money?  That’s where short term-financing comes in.

Not only should you be worried about getting physically fit, in order to succeed you should become fiscally fit.  The nice thing about short term financing is the risk is minimal without long term obligations. With short term financing you can get on a schedule, planning out money usage.  That means every Starbucks run, dinner out, gas tank refill, and any other miscellaneous expenses.  You can also use your funds to invest in your future through a ROTH IRA.  Planning how and when money is spent allows for an individual to make fiscally responsible decisions with their money.

Goals are something we learn about from an early age.  Whether it had to do with conquering a task like swimming across the deep end of the swimming pool or saving for something we wanted like a video game; we learned to set goals.  Part of the magic behind short term loans is the payment period.  Most short term financing requires funds to be paid back within a year.  This means some serious goal setting is important and unavoidable.  Although it is not impossible, it’s not likely you will pay back your funds in one large lump sum.  The idea is that you gradually pay back the money.  The main goal is to pay it all back and can be broken down into smaller monthly goals.  Slowly you make payments, little by little, reaching the smaller goals.  Eventually you reach your main goal and it’s all paid.  That sort of goal setting and goal achieving builds character.

There are clever commercials out there about credit scores and how to see if you have a bad score or a great score.  But what about those of us that have no score?  When I graduate from college I’d like to be able to buy a house.  In order to do that I need a good credit score.  The problem is building up a nonexistent credit score into a good one.  Luckily short term financing can help you do that.  By making payments on your short term loan, you build up your credibility and that’s where your credit score comes into play.  A good credit score isn’t even a requirement for short term financing which makes it easier to obtain and then use to your advantage.  Soon enough your credit score will increase in your favor.

My roommate uses short term financing in the form of a book advance before each semester.  It takes a few weeks into the semester for our financial aid and scholarships to be disbursed.  But she doesn’t have the means to pay for our expensive textbooks before she gets her financial aid.  What is she suppose to do?  Go to the first two weeks of classes without a book?  Not a good idea.  So she applies for the book advance, buys her textbooks, and then pays back the money when her financial aid comes in.  With the books she needs she studies and gets good grades which results in her graduating with a college education.  With that college education she is magically on her way to a good career, with the house and car following.  Thus she benefited and succeeded from her short term financing and so could many other people.

Short term financing may not always be the answer but it certainly has helped plenty of people get to where they wanted to be.  Short term financing doesn’t bind you into a lengthy term obligation and often times they have low interest rates.      They can benefit a person in a positive way.  Through planning how and when payments will be made, a person becomes a goal setter.  Learning about money and finances helps a person become fiscally fit.  In the long run it can help increase a person’s credit score.  Short term financing can help people obtain an education and career, purchase a house and car, and invest in the future.

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