Ennui Blog

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Payday advance places get a pretty bad rap in the media these days. People accuse them of being loan sharks that latch onto the poor and vulnerable and never let go. And in some cases that’s entirely the case.

We mustn’t forget that people know what they’re signing up for. If you have half a brain, you can successfully use a Payday advance without facing the stiff penalties that seem to trap other people.

The purpose of a Payday loan is to provide money sooner than when you expect to get it. This can be caused by many factors. A major one is Rent being due between pay periods. You can go down to the Payday Loan place, write them a post dated check (plus their fee), they give you the money and cash the check on the agreed upon date. It’s simple, you got the money in anticipation of your payday, so the check should have no problem clearing.

This is where most people fail. They fall into the ‘ethereal money’ trap. Money becomes an abstract concept where they lose it’s true value and seem to think they now have a lot of money because they have a Payday loan. They forget that they got it for a purpose. They spend the loan then spend their paycheck, check bounces, fees build up. Some people get Payday loan after Payday loan and get in over their heads.

But I digress. People can use them responsibility. I have a friend who was way behind on his rent and some other bills because his wife has some medical problems and was out of work for a couple months. They got in over their heads. Slowly though, they are working their heads back above water. But they needed cash, quickly so they didn’t get evicted.

So, he did some research and got a short term loan. They loaned him the money he needed, they take a chunk of his paycheck for 8 pay periods. His pay is always the same, so he knew he could swing it. The interest rate isn’t even worth mentioning, a loan shark would be cheaper. However, if he simply pays it off completely when he gets ahead, he won’t have to pay any interest.

By no means did he just come into ‘free money.’ Managed properly, the loan will help them get back on their feet and start to get somewhere with their lives.

All it takes is drive. You have to not want to be controlled by banks and lenders. You have to want control over your life and have the intelligence to understand how to have control over your own life. Payday advances and short term loans can work and be useful tools, as long as you understand what you’re getting into.

The problem is that most people don’t. God help them.