Are Payday Loans Worth It?
In my finance class we talked about getting payday loans and what the interest rates would be on them and also what the benefits and harms to doing it would be as well. From what I learned in class, payday loans are not worth what you have to spend to get them. It is sad (especially with our economy being so hard right now) that a lot of people need to rely on payday loans to get through. But the reality is, if you don't absolutely need to get a payday loan, you really shouldn't resort to that option. If you are really desperate for money or an emergency does come up, you are better off going to a family member, friend or even maybe selling an asset you have to get by. By getting a payday loan, you have to pay back the money you borrowed and an obscene amount of interest. So if you are someone that is really tight on money, it could put you in an even worse situation than you started.
Payday loans though are very popular, especially with the economy getting harder and harder to survive in. Families who were fine before, are being hit hard and having to cut back on a lot of things, and families or individuals that were struggling before are really cutting it close or are even having to rely on things such as payday loans to get them from one week to the next. Thankfully (something that I can really relate to) the gas prices are going down again, and hopefully staying down for awhile. When I drove to school in august it cost about 100 dollars to fill up my gas tank and when I drove home for fall break this past weekend, it only (only ha) cost about 65 dollars. But the cost of a lot of other needs are going up greatly, like milk for example. Things that families desperately need to survive are getting pricier and harder to obtain. I think what is going to affect a lot of people the most is that it is going to be harder and harder to get loans, like for mortgages or even for college. Which makes me nervous because I didn't really think about the economy right now effecting me that much, but when I think it may affect the cost of school next year or whether or not I can get money for a home when I get out of college, it really does start to scare me.