Predatory lending – Is that payday loans
Many individuals think payday loans are just predators waiting to lend cash to needy individuals , but let me tell you one thing , payday loans are simply there for assistance . If it wasn’t for payday loans these past years would’ve seen even more foreclosures and even more losses in jobs. Payday loans aren’t what I consider a predatory lender and neither should you.
Since payday loans are fast cash loans it’s easy to think of them as predatory loans but they’re far from it. A predator is someone that preys on the weak trying to get something of value, but a payday loan is the one giving the thing of value away, so if anything a payday loan is the weak one and the one getting the money is the predator. The toughest part about payday loans is that they have gotten a horrible reputation in the last 5 years because individuals thought they understood all about them when in reality they didn’t .
Let me ask you a question, do you consider personal loans are predatory lending? I believe a personal loan is more likely to be thought of as predatory lending because after you sign for the loan you are on the hook until it is paid off . For most people a personal loan won’t be paid off for a few years, so while you keep making those monthly payments the lender is going to prey on you since you’re at their mercy.
There is one thing I would like you to remember about payday loans that most individuals usually forget, payday loans are there in case of an emergency and should only be used on things you must have. Clothes and entertainment doesn’t count as an emergency and therefore shouldn’t be what you spend payday loan cash on. Remember to ask yourself one question before you buy something “ Could I live without this for at least 1 week”?