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PayDay Loans - My Thoughts
By businessbroad | March 21, 2007
As someone who essentially majored in money, you might think it would go against my beliefs to talk about payday loans as anything but bad. While I definitely agree that they’re not always used responsibly, I’m happy that the option is there, and I believe that there are times when getting one might be appropriate.
For instance: I know a woman - let’s call her Debbie - who runs a small shop. She’s very responsible about her finances, but she just can’t get ahead. There’s enough money to live and save 10%, she almost never eats out, etc. Still, she has kids, emergencies happen from time to time, and when they do, she’s right back to square one.
Anyway - sorry for the divergence - I talked to her once about a sale that her candle supplier was running, 30% off the normal rates. Even though she wouldn’t be able to pay for another week (and her credit card was too full after a recent roof repair), she wanted to buy then. To take advantage of the sale, she and her husband had got a payday loan that allowed her to buy the candles that day. Her profit from taking advantage of the loan more than paid for the loan’s interest and fees.
Bad decision? Not for her, and not for a lot of people. You just have to be sensible about it.
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