Payday Loans Can Make Or Break a Family Budget

Can Payday Loans make or break your family budget?

Image by The Library of Congress via Flickr

Depending on your personal circumstances, funds these days can be tight. We are going to discuss whether payday loans are an appropriate choice in different circumstances. Primarily, most Americans have access to credit like credit cards, and some even have access to small loans from family or friends to get them through a tough spot. If this is you, then payday lending websites are likely not on your favorites list. That is typical for most people who do have other sources of short term credit and loans.

What about those who do not have the privilege of credit?

Many people, especially in this economy, are having a rough go of making ends meet. Are the families of these people any less deserving than those who have the privilege of accessing credit when their normal income fails to cover the budget? Some people actually think so, which is a real shame and somewhat of a shock to the conscience. Why would those with great incomes want to limit access to short term installment loans and payday loans?

Big business plays a major role in the media’s negative reporting on payday loans

If you are an average family you are likely very appreciative that gas prices have gone down in recent weeks. It is a relief that you don’t need to scramble to come up with gas money. For many, the high gas prices did not even touch their lives except when they heard others complaining about it. Most of the people who have control over what the media and the news report about the different lending options are influenced by large banks. Do banks have any influence in your personal opinions? Unimaginable, but those who seem to be living a decent life are usually in a job position where banks have a direct or indirect influence on their “official opinion.”

How banks and the media get into your home

Again, there are two types of people we are talking about here. The first is the average family that struggles from time to time with bills and the other family who didn’t even notice that gas prices were outrageous except in observation only. Those who make decisions about what goes in the news and what is on TV are paid by someone. Large banks control huge advertising budgets and therefore can influence what makes it into the news just by simple the principle of conflict of interest. The media has to balance the interests of their readers or viewers and their own pocket books.

Media favors the industries with the largest advertising budgets

As the average family, how is your perception of the payday loan industry shaped? Have you directly ever gotten a loan to avoid a budget emergency? Is your opinion based on direct experience or based on what you have heard. We all know where “they” got their expert opinions. Most people repeat pretty much everything they hear in person, on TV, radio, or what they read in the paper. The sad fact is that most opinion is influenced one way or another strongly against payday loans by the competitors of the payday loan industry.

Why are banks against the payday loan and short term installment loan industries?

Have you ever gotten 5 overdraft fees in one day? Have you ever been late on a car or house payment? How much did you pay? How long did you borrow the money for? I seriously doubt you paid less than a payday loan would cost. Banks rake in billion of dollars every year on these types of crazy fees on top of fees. Here is an interesting statistic, 60% of credit union profit comes from fees. The banking industry is one of the most powerful influences in the world on government policy and media opinion.

It is just competitive business tactics

The banks are not actually sicking the media on the payday loan industry because they are trying to stop a certain class of American’s from retaining their rights to short term borrowing options. They just don’t want you borrowing from anyone else besides them. Making sense yet? Big banks know that those who try to balance check books but also use debit cards are highly likely to mess up and overdraft their account every so often. They count on overdraft fees for existence. As a matter of fact, without these fees almost all banks would immediately go bankrupt and close down. The threat from payday loan companies is a matter of life and death for many big banks, especially those who wasted billions in bad investments and all the other garbage you hear in the news that they have been up to.

Now that you know the truth, are payday loans appropriate for you?

What choices you make about your private financial affairs is up to you. If you have read this far then you are likely an informed consumer anyway. It is important to weigh your needs and determine if you need extra cash to get by or if you can do without it. In the end, after time passes, doing without rather than getting a loan usually works out for the best. Payday loans are not really meant for convenience shopping or instant gratification purchases. If you are serious about protecting your family’s best interests financially, you will avoid unnecessary use of credit no matter what type it is. However, there are many situations where online payday loans can save you tremendous grief.

Payday loans can prevent family tragedies

There is nothing worse than having your family suffer unnecessarily. That is why the payday loan industry exists today. When you are going to have to go without food due to unexpected emergency bills or for some other reason you become short on funds, it is a huge privilege to have access to getting money directly deposited to your account in just a few hours. No questions asked! Your car could get impounded right after you paid all your bills, you could have a medical emergency, or any other situation you can imagine. If it were up to certain people you would only have access to 100 times more expensive forms of lending from them exclusively.

Everyone knows that using credit should be done responsibly

You know that money is to be used wisely. Common sense should let you know if payday loans or cash advances are right for your particular family budget. Payday loans are not drugs that make people sick if they don’t keep using them. Big banks would have you believe they are close though. The point is you know the truth and if you have read this far, you now see payday loans in the correct light. Keep the media from controlling your view point on matters of personal finance and credit. For those of use who have avoided emergency financial situations with these type of short term loans, we are happy to enjoy the privilege of accessing payday loans online.