There is no doubt about it: The holidays can be tough. This is especially true for parents with children who want to provide a nice Christmas or another holiday celebration for their kids. If you're living paycheck-to-paycheck, or are dealing with constant threats from collectors, you might be considering using payday loans to purchase gifts and a nice meal for your loved ones.
This is generous of you, but it isn't the right thing to do. Here's why.
If you are already struggling, payday loans could be the straw that breaks the camel's back. The high interest rates and penalties of these loans lead to serious consequences, including bankruptcy.
You might be tempted to borrow just a little money until your next paycheck arrives after the holidays, but payday loans can push you down a well of debt because:
- Payday loans are not a quick fix. Payday loans tend to have enormous interest rates. If you need a payday loan, the truth is you probably can't afford to take one out. On average, a $325 payday loan balloons to $793 before the borrower pays it off.
- Payday loans will add to your financial troubles. You're under financial stress, which is why you are considering a payday loan. You will be under even more stress when the interest starts piling on, making your financial problems even worse.
- Payday loans give you a false sense of security. If you don't have the money for holiday gifts, unfortunately, you just don't have it. Taking out one payday loan is likely to begin a cycle of continuously needing more, causing damage to your credit score and your ability to make ends meet.
In short, the risks of taking out payday loans are huge, and the benefits are very little. Better options to make it through the holidays include asking your boss for an interest-free paycheck advance; asking a trusted friend or family member to loan you money, but be honest with them about when you will pay them back; considering bringing in extra money by doing odd jobs; making holiday gifts instead of buying them.
Above all else, remember that the holidays are not about gifts and spending money. Find another way to enjoy the season by spending time with the people you love.
If you are struggling with debt and see no way out, the experienced attorneys at Wiechman & Gasper, P.A., in Topeka, Kansas, would be happy to help you understand your options during a free legal consultation. Call 785-379-6642 today.