Payday loans are meant to bring solutions to those who are in need. With lenient requirements and quick application process, almost everyone can apply for a payday loan. However, if you’re not careful, payday loans can trap you. Around the world, thousands of people are enslaved by payday loans. They can’t seem to get out. These people can’t get out because their ‘realities’ are altered by sweet-tongued payday lender. Analyzing such realities can help you avoid the pitfalls of payday loans.
Payday Loans are Income Sources
One of the common pitfalls among borrowers is that they consider payday loans as income sources. This can be a fatal mistake because it’ll create a financial illusion. Once you have a payday loan on hand, your reward hormones will fire up and you may even forget about the conditions of the loan. Keep in mind that payday loans are liabilities, not assets. They are the worst type of unsecured loans because of their large interest and fees. Consider payday loans as last cards that you need to play.
The “Someday” Mindset
Many consistent payday loan borrowers think that they can get out of the trap ‘someday.’ They will be financially free ‘someday.’ Hence, the ‘someday’ mindset prevails. As much as possible, you should get out of this mindset. Instead of putting off your financial plan later, take action today! Cut corners whenever you can, and triple your income opportunities. This way, you’ll be able to repay your payday loan quickly. This proactive mindset is even useful in other areas of life like career or business.
Payday Lenders are Friends
After getting approved for a payday loan, a borrower smiles and considers the money lender as his friend. But when things get murky, that friend becomes a nemesis who can hound the borrowers for months. Understand: payday licensed money lenders are not your friends. They are business people. They charge interest on top of what you owe. If you fail to repay, these lenders will harass you and even send out collectors. That is the grim reality of payday loans. If you think you can’t handle such pressure, do not apply for payday loans ever.
The realities of enslaved payday loan borrowers can be downright saddening. Even though awareness programs are being held all around the world, many borrowers are still trapped. Upon knowing these realities, you’d understand what would happen if a payday loan is uncontrolled. If ever you need to apply for a payday loan, keep these realities in mind – then break out of them. Get out of the payday loan immediately and look for better options whenever you can!