This article is going to be a little “up close and personal” because, quite frankly, the topic has me a little frusterated. I think there’s a lot of miscommunication out there when it comes to short term payday loans, and I think we need to settle the topic once and for all.
Of course, I’m talking about the automatic payday loans when I say “short term loan”. The loans that are infamous for the cheesy commercials — usually because they are the product of an extremely small financial business that can barely compete in the cut-throat financial world.
They obviously get a lot of flack, and that’s what I’ll be discussing here. I think the flack is unjustified, and short-term loans aren’t half bad.
Conspiracy Theory
One of the biggest “paranoid” beliefs I have is that big finance is somewhere behind the attacks on short term payday loans. I mean, they’re the biggest competition against the small lenders, so it only makes sense that they would help prod the attacks on.
Short-Term Loans Vs. Credit Cards
Compared to credit cards, payday loans are just fine. I mean, you spend a couple of ten dollar up front, but it’s a one-time deal. You don’t have instant access to debt while at the mall. Credit card companies want everyone to have a credit card for obvious reasons.
Don’t Lose Your Lights
Of course, sometimes it’s perfectly all right to spend a little money — like if you need the power on for a newborn. This should be a given, but even some lobbyist groups refuse to accept this, and still are lobbying for the complete BAN of payday loans. This helps no one and hurts many.
What About Hotels?
A ton of people make the argument that payday loans costs thousands of percentage points per year. This is simlpy absurd. That’s like saying that hotels cost almost “$40,000″ per year. They do — but that’s not the point. They’re for short-term use, just like payday loans.
Final Points and Concluding Thoughts
I like short term loans and payday loans because they’re better than losing the power and electricity or even the AC. Getting one depends on your situation, regardless of what the big corporations might say.
This makes the entire cash advance discussion make a lot more sense.
