Payday Loan Facts

Being in debt sucks. I hate the feeling of owing a person or business money. I take comfort and security in knowing that I have no debts or outstanding financial obligations. Nevertheless, I realize debt is sometimes necessary.

I believe that there are a few things that are appropriate to take a loan for. These include paying for education, training, a vehicle, and home. I believe it is important to go into debt with a clear mind. For example, I personally would never go into over $100,000 of debt for school. There are always alternative methods to pay for school, such as scholarships, government grants, and other private grants that are given and do not need to be repaid. If you are planning on attending a school that charges over $20,000 a semester, you should either be smart enough to hunt down additional ways to cover the expense, or have enough money beforehand to justify the cost.

The same principle applies to a vehicle and home. I think these major purchases should scale according to your income and available budgets. While I am currently renting, I plan to get into a home in the near future. There are a variety of tools available to assess whether or not you should purchase a home or rent one. Some people are of the opinion that it is never worth it to purchase a home. I'm still not convinced. In Rich Dad, Poor Dad, Kawasaki explains the importance of understanding that vehicles and homes are not assets, they are liabilities. They are always going to eat up money in some way, and you can never be 100% guaranteed that they will retain or increase in value.

Now, onto the subject at hand: payday loans. From Wikipedia: a payday loan (also called a paycheck advance) is a small, short-term loan that is intended to cover a borrower's expenses until his or her next payday. The loans are also sometimes referred to as cash advances, though that term can also refer to cash provided against a prearranged line of credit such as a credit card. Legislation regarding payday loans varies widely between different countries and, within the USA, between different states.

My older brother has gotten himself into plenty of trouble with payday loans. In my opinion, payday loans should only be used in extreme circumstances, such as needing to pay for food or shelter. If you have a nice home and need a pay day loan, something is wrong. You should probably look into getting into a smaller house as soon as possible. For more information on payday loans, checkout this site about online payday loan instant approval.

Financial management is a skill that was under taught in my K-12 education. It wasn't until I was in upper level university courses until I actually started getting the idea of how to manage money. I still don't really know. I think this needs to change, and financial management courses should be taught to people starting at a very young age.

I think the root of good financial management ultimately comes down to a high level of personal self control and humility. Greed, envy, and jealousy drive much of debt today. If we can overcome our base, natural selves, and put off immediate satisfaction and make solid, long-term decisions, I think we will be happier. I'm still working on it.