My Payday Loan Experience

by Andy Hough on September 10, 2010

My personal payday loan experience was not a bad one. In the summer of 1998 I abruptly quit my job and did not have much in savings. This was not one of the smartest things I have done. I was able to find another job after a couple of weeks but it paid much less. On top of that my roommate had moved out and was not able to completely cover his half of the rent. I was barely scraping by. After paying all my bills I had less than $10 in my checking account.

Starting that spring and into the summer I had been training for my first marathon. This had been a goal of mine for a long time and I was finally about to make it reality. Unfortunately, the marathon was in San Fransisco and I lived in Las Vegas. I didn’t have enough money to drive up there and back and get a room for the night. I didn’t want to just give up on my goal. I had seen ads for payday loans in the paper so I decided to check one out. The process was pretty simple, they would give me a cash advance of $100 and I wrote them a check for $110 that would be cashed on my next payday. This was enough money for to me buy gas to get there and back and get a bunk in a hostel for the night. I was able to fulfill a goal I had worked towards for a long time and paid the loan off on my next payday. The payday loan worked great for my situation. Nowadays, I am better at managing my finances and should not find myself in such a situation again.

I was confident I would be able to pay the loan off because I had secured another part-time job that was going to be starting the day after the marathon. Also, I was moving into a much cheaper apartment. If I hadn’t been confident that I was going to be able to pay off the loan on my next payday I wouldn’t have taken it. The $10 fee was a cheap price to pay to be able to fulfill a dream but if I would have had to continually roll over the loan it could have gotten very expensive.

Payday loans are still around and now it is even possible to get online loans. I think these loans are an acceptable option in some situations but if you are confident you will be able to promptly pay back the loan I would look for other options.

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