Do you need money to pay for your seasonal expenses? Please ignore those payday loan offers that are actually there to "help you..." but to fall into debt. According to The Guardian Source:Log In But the true fact is that if taking out payday loans is a bad idea any time of the year, get one in December or January is even worst. First off, don't take for granted that you will be able to borrow as much money as they say, because each state in America has regulations in payday loans including the maximum amount that you can borrow, and only a few $500 or more. In fact only 37 states allow lenders to offer payday loans, in all other states are either illegal, not allowed, or banned like in Georgia. We all know that December and January often bring extra expenses, but think of other financial solutions to fuel up your wallet.
I agree. I have used payday loans and have found that they are just too expensive for me...and while I can sometimes fall behind in paying my year end expenses, taking out a payday loan just seems to make it worse. Payday loans can be a useful tool for those who have simply found themselves in a short term financial pinch and have the means to repay them at the end of the term, but it's never a good idea to going into debt to repay debt. It's just not smart business.
Payday loans are such a rip off, I've used them about 3 times but the rates are outrageous. I really needed the money at the time but wasn't educated enough to know that, it wasn't a good idea. Now that I'm older and smarter, I know not to fall into the payday loan trap.
I think that most of those loans could be classified as just above a scam. I've never had to use them (thank goodness), but I've looked into them in the past when I was in a money crunch. The rates were crazy and I felt like I would have been better throwing my own money away then doing a payday loan. I suppose if it is the only option, then you have to do what you have to do - but I would try to avoid it if I were you.
My son got caught in the payday loan trap. They borrowed money because of some unexpected expense one month. The next month they had to pay back the loan, plus interest; which made them short again that month, so they re-borrowed the money. The next month, they had to pay even more, since they had borrowed enough to pay off the first loan, plus the interest. Every month, the situation just kept getting worse, and finally, they reached the point where they had borrowed the total amount they were allowed to borrow in that state. Finally, they had to be rescued by the family helping them pay off the loan, but it was a seriously bad situatiion, and cost them hundreds of extra dollars paying the interest each month.
I never did a payday loan as I didn't want anyone having access to my checking account, but there were times when I had to do the equivalent, but with the title to my car. It's a hard lesson, but sometimes, things happen and you have no way out that is legal and quick. It's something that should be the last resort for anyone and only for the most imperative of situations.
