ARE PAYDAY LOANS THE OPTION?

Sometimes for reasons beyond our control, we find ourselves in a situation that we simply cannot afford to be in. The car needs a new transmission, the furnace conveniently decides to stop working in the dead of winter, Junior breaks his leg only days after you realize that there was a lapse in your family health coverage from you switching jobs. Whatever the case may be, the fact is that you need money...and you need it fast. Taking out a personal loan from a bank or credit union may be a viable option, but you may not have the time for such an involved process. Borrowing from friends and/or family may be a reasonable way out of this jackpot for some, while for others it is yet another dead end. So, unless you feel like taking a walk down to the docks and talking to a guy named Big Gino about a loan, perhaps you should first consider looking into payday loans.

WHAT TO CONSIDER

If your friends and family tell you take a long walk off a short pier, or if Big Gino throws you off said pier, opting for payday loans might be a wise decision. However, if you do choose to use a payday loan, borrow only as much as you can afford to pay with your next paycheck and still have enough money to make it to the next payday. During this time, it would also be a smart on your behalf to contact creditors and ask they allow you additional time to pay your bills. Inquire to see of granting you an extended grace period will cause you incur any added finance charge, and if so, how this can possibly be avoided.

Payday loans are not legal forms of loan-sharking, nor are they usury. They are merely a method in which business enterprises are able to capitalize on those who are less secure in their finances. There should be no shame in taking out a payday loan, but caution should be taken nonetheless.

About the Author:

Chris Sparling is a graduate student and screenwriter. His upcoming film “An Uzi at the Alamo” is set for festival release in November of 2004.