Payday loan lenders advertise easy cash to help with payments which cannot wait until payday. The online payday loan lenders did not create the initial debt or the living beyond income levels, so why do these lenders get the reputation for destroying people's credit? It's a mixed message deterring blame from one individual or company to another. Any legitimate payday loan lender would not go looking for a person to give a loan to, but just the opposite, the borrower searches out the lender.
How are future generations learning to deal with money? Children do not know what a credit score is, nor do they need to. What they do need to understand is that money is earned and how this money is used will depend on lifestyle. Parents spend years teaching children to save their money to purchase wants, but when they become of age to start getting their own line of credit, the messages are complete opposite.
The business world continuously sends the message that you can get whatever you want and if you sign with them, you won't have to make a payment for 12 months. Parents need to keep talking and explaining because the fine print is most often overlooked or not understood. A responsible payday lender promotes loans to help with an influx of unexpected costs, not to keep debt thriving by using the loans unnecessarily.
Credit cards companies prey on the materialistic side of humans by providing open balances with a quick application form often giving sign-up bonuses. These tempting gimmicks feed right into a young adult's dream of being able to purchase something without having to save. Instant gratification is a great pull into bad spending habits.
Financial education is a life-long process which changes with the ebb and flow of life. Building unnecessary debt at a young age will hurt a person later in life when financial options become important. Let's look at an example of a young man who may have been caught up on having access to a few too many credit cards. The young man was able to deck out his bachelor pad using promotional rates just for signing up for the cards. New furniture, computer, entertainment centers are all easily accessible when new cards carry with them balances itching to be spent. The young man has a job and works hard to make the payments. Things seem to go well, until the new car is needed. Applying for a car loan just got tougher with a high debt to income ratio. The demand on this man's income is keeping the struggle between paychecks more difficult to handle.
Will online payday loan lenders become a part of this man's financial journey? That would all depend on how well he was able to handle his debt. Those who get themselves too far into debt tend to have problems before payday loan lenders become involved. Mixed financial messages are developed before these short-term lenders get involved. Responsibility with money begins at an early age and should continue to grow with age and responsibility. It takes some forethought to make good purchasing and borrowing decisions.
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