By: kadijah thompson
“Payday Loan!?” “Yea I’ll apply for one!”. That’s what the first person who is in desperate need of money will say. He or she won’t think twice about it either. But is that the right decision? Will it really work? Are loans the best way to go? I think so but, to a certain extent. You have to know how to utilize your money, how to spend money and save for the future to potentially pay back the money from the loan.
Now let’s just ponder on the example for a minute, shall we? Let’s say the man/woman may have had it rough since they were born, finally they get to a point in their life where everything has gotten to where they wanted it to be. But a rainy day comes and they weren’t prepared for the rain to come. Now they’re on their last penny, their last dime and they’re trying to figure out what to do. They consider all their options and decide to go with the Payday Loan route of things. Now they have to really think about all the outcomes of taking out a loan. You have to have some way to pay all that money back, hence the term “loan”.
There has to be some type of pay back for the loan. So how would he pay them back if he’s on his last dime and has to take out this loan? Well that’s where it can be good and bad. That’s where the decisions come in about whether they really work. I’ll give you the good first. Now he could take the money he receives and make more out of it. He could pay what he needs to at the time and then he could simply pay the money back and pay it back on time. Easy and simple right!? I also heard paying loans ON TIME raises credit scores and that you’re more likely to get a loan the next time around.
Now, the bad is that he may not put the loan money towards something that would help him pay it back in the future. He may be irresponsible with the money he receives. He may not utilize it as well as you think he would. That’s where it gets bad. He could possibly put himself in debt, having the “loan collector” after him 24/7. All this could have a down effect on future loans, his credit, and much more. By him not paying his loan back or on time it would make it harder for him to take a loan out in the future. The loan company may not even let him take out another for future problems or they may just not give him a loan at all. It could potentially harm his credit score as well. Not to mention the interest that will pile up if you miss the due date, which will end up being about $300 more then what you asked for.
I guess what I’m trying to say is, Payday loans and loans in general can work for you or it can hinder you. It really depends on the person, the situation, and the outcome. There can be a person who knows how to manage their money well and knows to pay things on time and do things right so their life can get back on track. Can they really work for you? It all depends on your current situation. I still suggest that you try it out but, only if you could handle everything that comes with taking out a loan. Who knows you may become successful after that one loan and never have to take out a loan again. You could even open you own loan company with the money you manage.