Pay day loans seem the ultimate counter-intuitive course of action. If the point of pay day is getting financial reprieve, why then would there be a need for loans on pay day? It’s a fair question, but clearly one that doesn’t take into account the dire financial straits many workers find themselves in. With many still recovering from the aftermath of bad financial decisions by the banking industry that led to the last recession – yes, all those years ago – financial security is something many people are still battling with.
Recovery from financial dips are usually long and painstaking, not least of all because while one tries to play catch-up on debt acquired during desperate times there are still the daily demands of getting on with the business of living. And so pay day loans are necessary in contexts such as these where one is making a living and receiving an income monthly, but the amount of money one receives on pay day is not nearly enough to get one out of the financial dip caused by debt as well as take care of immediate survival concerns such as shelter, food, and the like.
Pay day loans obviously mean more debt for those who acquire them, thus trapping people in a cycle of debt. However, at the very least what these loans do is that they buy people time to work out a plan that’ll eventually see them cast the shackles of debt off and no longer need loans of this nature