Payday Loans Are Like The Poor Mans Crack.
You rationalize, "Just one hit won't hurt", "Lot's of people do it", "It's not illegal", "I'm a responsible person", "I just really need some relief and this seems to be the only answer." Then you go into denial and think, 'I won't get hooked, besides this is the last time.'
I fell into this bottomless pit of hell about 7 years ago. I can't even remember why I needed the money. It may have been something like a shut off notice or Christmas or whatever. Anyway, the thought of getting cash in hand was just too good to pass up. It may have been just a couple of hundred dollars due on my next payday. No problem. I will get paid and just pay it back in two weeks. At the time of the loan, they make it very clear there is a 400% interest rate on these kind of loans. (That is if there is an outstanding loan with their establishment.) Otherwise, for $200.00 there is a $50.00 interest fee on the loan due on the next payday. I thought, 'Okay $250.00 in two weeks. I can handle that.'
This is the problem. Anyone who needs to resort to a Payday loan is not making enough money or spending too much. My credit was shot so I couldn't get a loan any other way. It wasn't really reckless spending. It was a low-income versus high expenses. It didn't matter. I had one foot in the grave as soon as I saw that cash counted out to me over the counter. I was in serious denial. I thought "I'm in control here", "It won't be a problem."
These Payday Loan companies make it just too easy to get hundreds of dollars right away. No credit check, no hassle, and nice attractive people at the counter. When that $250 loan is due in two weeks, it became another strain on my already busted budget. That cash relieved my problem a couple of weeks ago, but when the loan is due there are new problems and the bills keep coming in. I thought, 'Well, this loan helped me get out of trouble a couple of weeks, so I will pay this one off and get another one.' But this time it will be for 350.00 plus interest and due in two weeks. So the cycle begins.
One indication of a serious problem is when you don't want to tell anyone about what you are doing. If there is embarrassment or shame with an activity then there is a problem with what you are doing. So I didn't tell anyone about these loans. Until it got out of f-king control. In a short time, I had loans out all over the place. At one time I had 7 loans out at different payday loan companies spread out between Idaho and Washington. Well over half my paycheck would go to pay off these loans. I probably had over $3,000 owing at one time with an interest rate of 400%! They didn't call each other and so it appeared like I was only active with one company.
"Sure, Mr. Pellerin. You are qualified to take out $700.00" The nice clerk would say.
"Well, all I need is $500.00," I said knowing that there was no way in hell I would be able to pay that loan off in 2 weeks.
"Sure, here you go Mr. Pellerin. Just bring in $650.00 cash in two weeks."
"Okay. No problem," I lied.
This is when it got real crazy. These guys would try to cash my check at my bank. Usually it didn't clear. So my bank would charge me $20.00 and the Payday loan company would charge another $20.00 on top of the loan. Soon my bank account was overdrawn $900. Then the bank shut down my account. I had to change banks 3 or 4 times because these checks would try and process. These payday checks would be returned or else they would clear and drain my bank account. It got to the point I would use cash I got from one payday loan to pay off another.
Then these checks went into collections. Holy crap. What a damn mess! Collection calls all the damn time. One good thing is not one of these payday loan companies would loan to me any more. My supply was shut down. Then I went into financial withdrawals trying to pay off these loans. I was forced to go off cold turkey. It was no fun to watch 50% of my income being garnished before I got my check. But that was the price I had to pay for the dependence I had on Payday Loan cash.
I have been clean for over a year and a half from these loan companies. I also got straight with my bank. I am still paying on a couple of outstanding loans, but little by little I am digging out of the Payday Loan Pit. I hope to never fall into that abyss again.
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