Payday loans - my opinion

The other week I was walking through a  courtyard area just outside a Westfield and I noticed a few payday loan places within metres of each other. I used to be very against payday loans, but if used correctly I don’t think they are all bad.

If you use it as an emergency thing because you got a massive bill one month and just need a little until the next pay but will be able to repay it in full it is ok as long as it does not become a regular habit.

Payday loans get bad when people use them to fund their lifestyle and are unable to repay them due to the incredibly high interest rates and charges these type of loans accrue.

I think it comes down to personal financial responsibility and knowing your circumstances. I know of people who have used payday loans and it has been ok because it was a once-off thing and they repaid it in time. I know of many more people who have major troubles because they use payday loans as a personal bank instead of being responsible with their finances.

If you have trouble with debt, or managing your finances you should steer clear of payday loans at all costs. If you have just had a bad run and know you can pay them off then it is ok.

Payday loans should never be used for anything other than dire emergencies. Using them to pay for gambling, a holiday or something else that is not absolutely necessary is crazy. Even when it comes to bill payments you should try contacting your providers and negotiating with them first, before considering a payday loan. Most are more than happy to work something out because they are more interested in getting their money than anything else.

So what are your thoughts on payday loans?