When I was in my early 20’s and recently married, my husband and I were doing our best to make it out on our own for the first time while he was in the military. We ran into hard times and decided to try and use one of the payday loan services “just this once” to help us out temporarily.
But once we used the first payday loan place, we had to find another one in order to help pay that one, and then yet another one to help pay off the second. We got in way over our heads and it took us a year of trying to just keep up before we realized we were in big trouble. We eventually borrowed money from my parents to pay them off completely and be done with it, but not till we accrued $7200 in interest. We have since finished paying off my parents and have vowed never to use one of these payday loan places ever again. They are NOT worth it!
Submitted by: Jane
Lesson Learned:
I have never used a payday loan service, thankfully. I’ve heard nothing but bad things about them, but sometimes people are put in desperate situations and use them anyway. Daily Finance recently posted a story of a woman who took out a payday loan with 798% interest rate.
Payday loans are an absolute last resort when needing quick money, and ONLY if you can pay it off immediately. Otherwise you are just putting yourself at a huge and very likely risk. Save up an emergency fund -now- while you can, even if that means you can only put $20/paycheck away for now, at least get started. And don’t be too proud to ask for a loan from family. While I am not a promoter of borrowing or lending money, if times are hard then it really doesn’t hurt to task, so long as you are diligent about paying it back (without 798% interest).
Amount Flushed Down the Money Drain: $7,200
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