Saturday, December 22, 2012

The time I almost took out a payday loan...

Recently I found myself in a situation where I was seriously considering a pay day loan. I am so anti debt, but I just had no idea how I was going to make ends meet.

I had been robbed, so all my clothes, shoes, jewellery, skincare, make-up, even my underwear was gone.
I had been paying for all my daughters speech therapy despite my ex promising to pay, so was heavily out of pocket there because I continued the appointments expecting payment from him. (He has since back paid me.)
I had no fridge so was spending more on food as I had to drive to the shops and there was limited options for what we could eat and store. It is summer here, so nothing lasts long if not in the fridge.
I had moved suddenly and most of my savings went on the move for the bond, advanced rent, cleaning products, moving my stuff etc.

So I was in a situation where I had no cashand no idea how I was going to pay for things my daughters and I needed. I knew my insurance would come through soon to cover the robbery and as I was contemplating what to do I walked past one of the many pay day loan places in my area. There seems to be one of these places on every corner. Knowing my insurance money was coming, I was tempted to go in.

It was the first time I saw it could really be useful. I have had relatives use pay day loans, some good, some bad. If you know you can pay it asap I don’t think it is too bad, but if you use it as a financial crutch or get stuck and can’t pay it instantly, it will cripple you.

I stood there in the street, thinking about it. What were my options really? Not pay rent and be unable to rent elsewhere later? Not buy food and try to stretch the rice I had in the cupboard for the next week? I could get a pay day loan just until my insurance pays then I would be fine.

I decided against it and instead swallowed my pride and called my parents for help. I am fortunate they are in a position to help me, so I didn’t need the loan, but when I discussed this with a friend of mine, she said she had been in a similar situation (right down to the robbery) and she had to use the loan. Thankfully she was able to pay it quickly, but it did get her through as she had no one she could get help from.

This is the first time I have truly seen how a pay day loan could be beneficial. I never expected to be in a situation where I would truly consider using one, but there I was. I can tell you now, from my recent experiences I am a whole lot less judgemental on the whole pay day loan thing. I still don’t think people should depend on them, but I know I could have gotten cash right then when I needed it and it was a need.

Have you ever been in a situation where you just do not know where you will get money from that you need to buy food/pay rent/petrol etc.?

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