Every place I go, whether for shopping, filling up my car with fuel, going to work, going to a doctor or dentist appoint, visiting friends or family, jogging, walking you will see a little shop with a sign that mentions payday loans. There is no doubt that in our human history have we had these places where you get a loan or an advance payment for your check and you have to pay it back within your agreed time-frame. With modern day, these payday loan shop have not just easily helped you out giving you loan but they have not given you the fine print of actual loan. From what I heard through other blogs, news article, tv news, these loan places tend to be open in areas of low-income or poverty living sections of the city. They know that individuals that do not make a lot of money through their employment, disability, pension, social assistance and their need for a loan is greatly increased and it give them the advantage and the individual the disadvantage.
The myth of the Payday Loan shops is that they will give you a certain sum of money and they will offer you the loan without any hassle or delays. They will not tell you what the total loan amount will entail; just money that you need to make a living, pay your costs of living, pay your expenses. It is the individual that will be shocked to find the end result from borrowing just to get by a little bit. All we ask is that we need some money for a temporary time which will be payed back
They are not there to help the individual easily with their financial stability but to further gain their profit from the individuals’ debts. There must be some legislation that can be put on payday loan shops to provide all information to the individual the true amount and the total fees with interest. I would understand interest in the 13 percent to 21 range but hearing of interest rates of 500 percent and up annually is not just ridiculous but inhuman.
When I pass by these payday loan shops, sometimes I get tempted when it comes to borrowing to consolidate my personal debt. There is just this inner vibe that tells me to stay away from them. If you can get loans from reputable institutions such as banks and credit unions then go that route. Any regulated institution would be safer than shops offering loans without providing disclosure of what is entailed on that loan. I just get so angry when I hear individuals that get taken advantage of and who have no place to go besides the payday loan shops.
I would like to gain more insight from others that have heard of payday loans and experiences for those that used them. I would also like to dialogue with you with regards to this subject and the morality of monetization in our society. Do you believe that this is one of the reasons that the average person is in high debt? Can we stop this unethical behavior?