My Take on Payday Loans
Payday loans are generally for those who can't qualify for a signature / personal loan. For those of you who aren't familiar with this type of loan, you basically apply for a cash advance by trading a personal check for a loan until payday. You then return with cash in hand to pay off your loan plus the interest that applies depending on the initial amount of your loan.
The catch is you can end up paying a pretty hefty interest fee when it comes time to settle up. There has been a lot of controversy surrounding the payday loan industry. Granted there are those who have got caught up in taking out multiple loans at once only to find themselves in a real financial bind. It's especially easy to do so now with many payday loans available online. I can see how a person could easily accumulate a large amount of debt in a short period of time since there is typically no credit check required to qualify so it really opens the door to those who would otherwise not be credit worthy.
In my opinion, it really boils down to the responsibility of the individual to not overextend themselves financially. Although this type of service may be beneficial for the occasional emergency, you shouldn't abuse the system by taking out multiple loans or even consecutive loans with one organization. The best and smartest thing to do is to set a little aside out of each paycheck to prepare for any unexpected expense. Any money you save is interest free and since you're borrowing from yourself , you're likely to be much more lenient than any payday lender.
