From Start to Finish the Cycle Never Ends

I have been dealing with the struggle of Pay Day loans since 2014. I had a period of time where I was a year out of high school, where I was couch surfing and not making a lot of money. I had a lot of pride and did not wish to borrow any money from my family members or friends. I was in fear of ruining relationships. I chose to go to a cash store and it was all downhill from there. You have to go through an application process where you provide necessary documents (ID, mail, and bank statements). They qualify you for maximum balance that you can take out at once. They provide the loan by cash only. The catch is they add on interest. Their interest is 25% rate (very high). You have to pay the loan back by your next pay period and cannot go past the due date. Shall you do go pass the due date, they will automatically deduct the money out of your account no matter the circumstances. Being the prideful and desperate person I was, I went along with the program.  As a result, I was stuck. I would need to manage my money and expenses accordingly. Even though the first time I needed an extension, every pay day I would constantly borrow the same amount I was in fear of losing that percentage of my income. I asked for a payment plan and they told me I had to borrow and complete 8 loans in order to qualify. Even with the payment plan option you have to pay a fee to induct in the payment plan ($20). When you pay the minimum they only give you two pay checks to pay it back so it’s kind of like not even a having another bill. From my experience with Pay day loans it has been a very hard cycle to get out of. The habit takes a long time to break and there are guidelines (laws) that are to be followed. Recently I have fallen back to hard times. I am currently back in the loan cycle per having car troubles. I had to empty out my savings over the summer to pay for my car. One week I paid $200 to get my car back on the road and the next I was back at the auto shop and emptied out close to $400. I was out $600 in the matter of two weeks. I still have other responsibilities (rent, childcare, utilities, and gas). This has taken a toll on how I am able to manage my pay checks. My first priority now is the Pay day Loan because I would incur bank fees if the cash is not in my account. Not only that I have recently been hospitalized and diagnosed with Hyperglycemia and pre-early determined Diabetes, while drowning in debt.  I would not recommend a person to get a payday loan if they are not sure that this will be a onetime occurrence and I would strongly recommend classes on money management and self-control.  This can be a bad habit or behavior that you could potentially be stuck with.

 

 

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