The Two Sides of The Payday Loan Industry
Like the heads and tails on a coin, the payday loan industry has two sides. When it is the heads, you win because you know precisely what you are doing, and the tails you lose because you are potentially walking in to a trap.
The Payday loan Industry is your friend in need and more so in these troubled times, but it can quickly turn into your worst nightmare. For the payday loan industry, your troubles spell an opportunity to make a quick buck and they will go the extra mile to convince you that the process of getting a payday loan is painless and simple. In most cases, painless and simple it is, because there are no credit scores to bother about, little or no paper work and the money is credited to your checking account, often within 24 hours from the time you make an application. But, as the borrower, did you sit back and consider other options before seeking the payday loan? Did you take a good look at how the payday loan industry works and why there is so much of buzz about payday loans?
Sadly though, most borrowers do not do adequate homework before seeking a payday loan and by the time they wake up to the harsh realties, the damage is already done. You cannot blame the payday loan industry because they never insisted that you take the loan.
The payday loan industry flourishes because on your next payday the loan, together with interest and costs, are taken from your checking account through a mandate you would have provided to that effect. This will potentially leave your checking account in a none too healthy state yet again. What did the payday loan industry do to your personal finance then? Possibly the loan helped in preventing a check from bouncing which anyway would have had its costs and the added embarrassment. Or, you had a minimum payment obligation on your credit card that could not wait till the next pay day and therefore you saved some penal interest and prevented your credit score from dropping.
The best way to use the payday loan industry to your advantage is through a high degree of discipline in handling your personal finances. Everybody agrees that this is more easily said than done. It is also critical to examine the terms offered by the lender with a magnifying glass and see where the fine print lies because each player in the payday loan Industry has a different set of rules