Payday Lending Responsibility - Time to Get to the Bottom Line

The payday loan industry has been touted as an industry that seeks to put people in debt and make their money from fees that are acquired when their borrower defaults.

Defaults are quite common in the industry, but it does not usually happen when a lender is following the laws in place per its area. Where does the problem lie? It happens when people borrow irresponsibly.

The payday loan industry has offered people a way to get quick bursts of money for unexpected circumstances. Rarely do you see payday lenders advertising as such:

- "Quick loans for vacationers."
- "Come on! Buy that boat you've always wanted. Quick cash loans inside."
- "You know you need that new car. You deserve it. Get approved instantly with us!"

One would think that encouraging people to borrow money for things they want but don't have immediate money for is easy to see through. The payday lending industry doesn't take you for that kind of fool.

The information that goes around, articles that are written and even literature in a payday lending office, all revolve around the fact that their loans are for immediate, urgent circumstances.

A good lender doesn't want to encourage you to spend money you don't have, pay thousands more in interest than what you borrowed to risk losing your assets. A good lender wants repeat business. Even if that means you only get one or two loans from them per year.

Banks typically deal with large cash loans. They do work with smaller loans but most have a minimum that they will process for you. If you can't find someone to loan you $200 for car repairs, then a payday lender is a great option in this situation.

So, although there are thousands of people who circle in the whirlpool of debt they have created for themselves, they did not go there under duress. We can look at the situation this way perhaps, picture a hungry child in a candy store.

The candy is there, within reach, is easy to get, and the child has an urgent physiological need for edible substance. Do you imagine that it would be a challenge for that child to restrain himself with the tasty food and just eat enough to curb his hunger?

The chances are likely that a tummy ache will ensue. Children learn self control, personal restraint and how to delay gratification when they are little.

The ease of money when we need it, or want it, applies the exact same way. Our whole society, and most of the world, revolves around convenience, satisfaction and getting what we want when we want it. In turn, most of our choices are hurting our bodies, our finances, hurting others and our planet.

If you need a loan, make smart decisions with which lender you choose. Know what you are getting into and most of all help spread the word that this industry is not intentionally causing harm.

The following check list will help you make the right decisions about payday loans:

- Find a lender in your local area. Never borrow overseas!
- Take 10 minutes and research the specific payday lending laws in your state.
- Ask what the fees and interest rates are.
- Ask what payback schedules you have.
- Never borrow more than you need.
- Know your payback schedule and don't default!
- Read your contract.
- Have a good plan on how to pay it back.