Short answer, there are no other means. Many people do not have access to any form of credit. I was also not able to open any bank account previously much less loans or credit cards. We cannot get any loan, however small, from banks and we do not have any credit cards that we can use in times of emergency. So there are really very few options available for lower-income people. The government can keep demonising the payday lenders (even though my personal opinion is that many of them are indeed trying to exploit the poorer population), but the government is not providing any way out for us and it is the social system in our country that has led to such a large proportion of citizens who needs loans just to get by. If the government intends to really solve the payday problem, then it needs to look into solving the poverty problem and providing cheap credit that can be extended to us.
I managed to get out of a life of making ends meet week to week but there are still a lot of fellow Americans who simply used up their entire weekly pay check for basic necessities like rent, food, transport and clothing. And when a need arises, we have no one to tun to for help. We cannot be
always asking for money from our parents, and even if we want to, not all our parents have spare cash to lend to us.
I have also spoken to many people who have lent money from payday lenders and all of us agreed that it is the only means of funds that is accessible to us unbankables. The banks does not want to do our business as many of the lower income people tend to default on their payments and it is a huge risk to the banks. They have to answer to their shareholders about making money for them so having a guy with bad credit on their customer list is a big No.
I really wish I did not have to take a payday loan when I needed to pay the rent on my apartment and I did not have enough money, but l was desperate. I was equally desperate when my car broke down on the highway and I had to pay $300 to have it towed back for repairs. Where was I to find the $300 and the additional $500 to repair my car. I wanted to just leave my car on the side of the highway and walk to the office. I contemplated just riding a bicycle to work daily but I just could not do it; sorry if I was weak. But I took on a loan just to be able to pay off all my urgent needs whenever it pop up. I was desperate.
Each day many Americans feel the same desperation that I felt that day on the highway staring at my busted car engine. Each day these same fellow Americans feel the same helplessness when they think of the other options of getting credit. And each day these same Americans go ahead to a payday lender and borrow the $100 to $500 that they need. Please do not look down on us because we look to these exploitative lenders as we really had no choice. I may have made my way out of my low point but countless Americans are still down in the pits waiting for the help and all they see are the flashing neon lights of “Instant Cash with Low Fees” and “Quick Money For Americans”. Desperation drives all of us to the payday lenders as they present the only way out of our rut.
Payday Loans Lenders always advertise themselves as the lender of last resort but to many of us, they have always been the first and only choice. And the lenders are aware of it and they exploit this vulnerability. But as a buyer of payday loans, we must also be aware of our position as a customers and we should always ask for a better rate. There are many payday loan lenders and we do not always need to go to the same shop each time. We should get a quotation from as many payday loan lenders as possible and then decide which is the lender of choice. If you are staying in
a smaller town with only one or two lenders, you should use online payday loan services which you can apply simply by sending some personal details across for them to assess the risk of providing us the loan.
I would choose not to take up a payday loan but there are really no choices left for many people. I had no choice or at least I choose to believe that I did not have any choices and hence I had to take a payday loan. I was really desperate at that point in my life and I just needed some cash to tide over the emergency. The money loaned was a few hundred dollars each time and although it sounds like a small amount to many Americans who can afford a thousand dollars bottle of wine, it felt like the end of the world to me. I am glad I was able to slowly pay it back and not get caught with too much fees.
But I still feel that the lenders have, in a way, helped me to move on with life. Without the small financing, I would have not been able to clean up my life, bit by bit, and would have still been working for minimum wages. Take a payday loan only if you are able to plan when your scheduled
payments are and whether you are able to cut back some expenditure to pay back the loan. And there are decent payday lenders out there, you just need to be careful when you work with the payday loan lenders each time you take out a loan.