Don’t Be a Statistic; Short-term “Payday” Loans Can Destroy Your Financial Health
I still remember the first time I went canoeing. I did fine until we’d almost completed the watery journey. Our canoe tipped slightly to the side, and both I and a fellow paddler slightly freaked out.
So focused on what we saw as a problem, we overreacted. We tipped completely over. We got drenched — and of course, we were teased for hours.
Sometimes a short-term problem can cause us to go crazy and look for any answer — even if it causes long-term havoc.
Payday loans are geared towards suckers. People who are financially illiterate, and want to eradicate a “now” problem at the cost of “later”. There are several reasons you should never consider getting a short-term payday loan:
High Interest — Payday loans have outlandishly high levels of interest, meaning you pay much more than you ever should. The interest for a short-term loan is often hundreds of times the rate for other loans.
High Fines — If you miss your payment, the lender will often slap you with a “fine” that is nearly the amount of your loan. This makes it much harder for you to pay the original loan off, putting you into debt slavery. Not pretty.
More Debt — Debt, in general, harms your financial well being. It means that whatever you buy isn’t really yours — you haven’t even paid for it yet. Plus, why would someone lend you money? They are literally selling you money … so long as you pay them even more money. Debt is almost inherently a bad idea. Don’t get a short-term, short-sighted loan. Focus on the long term and learn to actually solve problems. Don’t sink your financial canoe.