As expenses such as gas and food prices go up, many people are finding their wallets getting ever thinner as time goes by. Their credit becomes worse, people are losing their homes, cars and resorting to selling some of their possessions just to make another end meet.
While not a longterm solution by any means, a very short-term solution to play a quick catch-up is a payday loan. And in the past year alone, payday loan sites have jumped in number – and popularity – tremendously.
What is a payday loan? Also referred to as a payday advance, it’s exactly what it’s name implies: an advance on your next paycheck. In a pinch, most anyone who usually lives within their means but has an extra, unplanned for expense can catch up and meet their monthly bills and still be able to pay off the loan within their next two or so paychecks.
But beware the fees of some lenders who can charge upwards of 500 percent on a single payment. If applying online, one must shop around, do their homework and understand the fees and try to find the lenders with the lowest fees possible before committing to a payday advance.
Seemingly every day, yet another payday advance center opens up online. A couple of years ago, hardly anyone had ever heard the term. Now it’s a household name, and a household familiarity. People are desperate for newer and easier ways to get ahead even while the proverbial sharks circle and it’s very easy to find more than a hundred payday loan websites online; one need look no further than the search term. A search here, a few clicks there of the mouse, enter some information, click submit, and voila! One begins a vicious cycle of even more debt.The payday loan is a temporary answer to their needs, but the cost in the long run inevitably spells trouble and even more financial disaster in the long run.
As prices of food, gas and other necessities continue to rise, so will the Googling and Yahooing of yet more ways to get an advance on one’s bills, and so will the debt of the lower and middle class as they struggle to get yet another bill paid on time.
Predictably, someone’s pockets will continue to get slimmer while the new loan sharks of the future count their spoils, always at the cost of the poor and those on the verge of being poor.
What’s next for these people at the mercy of the sharks? Until further legislation is put into place to regulate the outrageous fees of the payday loan, the cycle may never end for some.