What is it that creates so much anger?
Payday loans are a uniquely debated topic. It is very interesting to me that so many people seem to have blind hatred for cash advance lenders specifically. What is it that creates so much anger and animosity? Is it the fees that seem high if you look at them on a yearly interest rate basis? Very doubtful. I, being a continuous user of this type of personal loans, am somewhat puzzled. I do have a theory though.
Have you ever lent money to a friend? What about a shirt or some other type of clothing? Let me ask you this simple question, “are your friends always happy to give it back?” That is a profound question because it digs right down into the psychological reason why people believe the sponsored propaganda against payday loans in general.
Competition Between the Banks and Payday Loans
I know in many cases there are genuine reasons why people do not have the money to pay back the loan. These situations are not the reason why the media portrays payday loans and cash advances as a trap. Banking overdraft fees are hundreds and sometimes thousands of times more expensive. Payday advance loans are big bank’s fiercest competition. The point of this article is to discuss the real underlying reason why so many people easily buy into the propaganda against the payday loan industry. It is pretty simple if you just step back and look at it for awhile.
Loss Always Hurts
Once a human being acquires some type of advantage they do not like to give it up even if it is the right thing to do. A little extra money now and then, especially when the bills are tight, is tremendously helpful in a time when you need extra cash. But once a person is over it and the averted tragedy is just a memory they subconsciously see paying back the loan as a loss. Loss always hurts even if it is not really a loss at all but a justified repayment. Everyone hates losing an advantage they have acquired. It is a simple fact of life, for most people anyway.
If you have ever gambled and lost something big or had to pay a large bet you made in haste, then you know the sick feeling that can creep into your stomach when you have to give something up, even if it is the right thing to do. It is not the loans that are causing problems for people. It is their own mental issues that are causing them grief. Do you realize how much suffering in this world is self afflicted by psychological issues like this?
Nothing Lost When You Pay What You Owe
Fortunately for some, they do not feel bad when doing the right thing. I hope that those who do feel wrong when doing right, have a chance to someday learn to let it go as I have. There is nothing lost when you pay what you owe. This is a small and seemingly easy concept to think about but it is much harder to put into practice. Who really wants to give up a large chunk of their paycheck on payday? That is not the best feeling for people who do not have the capacity to continue being thankful for the emergency that was avoided even on payday when they pay back the cash loan they received.
As I mentioned before, I use these types of direct loans myself simply because the suffering my family would go through is far more severe than paying higher interest rates on a short term loan. We are not poor and most who obtain payday loans are not low income as the media portrays. In fact, you can not even get a loan if you are poor. The risk of default is too high for the lending companies.
There is nothing worse…
It would be nice if life never put our family in a situation where we had to pick between rent and groceries. I, for my part, are not going to get mad at the the nice people who are willing to risk their money to help my family avoid what I consider a tragedy. There is nothing worse for me to suffer than fighting with my wife about not having groceries or telling my kids not to eat too much because food is short.
Most of the time I am very thankful that there are payday loans available for families like ours. Life would be some much harder without easy access to short term loans. I just hope that people wake up and realize that before they ask the imperfect human government to take that access away, which would be a real tragedy for families like ours.
Just a theory by someone who does not hate to pay back what I owe and appreciates access to a cash advance payday loan.
David Johnston
I hope we’d never have to tell our children not to eat till they’re content because food is short. Certainly, having to choose between rent and groceries is a tragedy, especially when children are involved. The payday loan industry has become a life-saving resource that many people rely on when unexpected expenses occur. Instead of resorting to a bank or credit union, applying for a short-term installment loan is by far the most practical move to make. The interest rate is lower and best of all, many people have an easier time fitting it into their budget.
Payday loans are your best alternative to return check fees. If you are running low on cash and need some extra money to help out at the end of the month a payday loan is your best and most convenient option.
Plain and simple, everyone knows what a contract is. And everyone knows when you sign your name to an agreement your then binded to the contract you signed. Well it’s not like the payday loan companies are keeping information from you or are hiding the facts. The fact is, it’s all in the contract that the customer signs and weather the customer actually reads it all or not before signing is on them. So why do people have so much animosity against them? If you don’t think they’re right that’s fine don’t get one, but for those who do take them out and then default are you really gonna blame the company and back it up with the excuse of high fee’s?! I utilize payday loans myself and though I may get caught in them from time to time, I’m not gonna take my frustrations out on the companie because I know what my contract terms are and I’m also aware of the APR (if it was to be on going for a year).
well written.
some interesting views here. like many things in life, as long as you are careful and educated about these options, they can be used positively.