Payday Advances - Savior or Devil?

I admit it.

I've done it.

I've gone to get payday loans. Cash advances.

I've signed the papers promising I'm not going into bankruptcy.

At the time, it felt like such a weight off my shoulders.

I quickly learned that getting it once, quickly led to a bi-weekly necessity.

If you need $300 and you don’t have the room in your budget to pay back $360 in 2 weeks, you just can’t get ahead.

That’s right, the interest rates on those “micro loans” or payday advances is somewhere in the neighborhood of 500% to 543%.

That makes a loan of $500 worth $600 in 2 weeks.

That’s how these companies make their money.

You almost have to be addicted to them just to stay afloat.

How did I get out of the loop?

I called creditors and made arrangements for my bills so that I could make the payment to the Advance place one final time.

I swore to myself that I would never fall into that trap again.

It’s just not worth the financial downspin that it caused.

My advice-if you’re considering a payday advance, talk to your creditors and see if there’s something you can push back or arrange a payment plan.

In the long run, you’ll be much better off.

Last Lecture by Dr. Randy Pausch

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