Payday One Loans and how they Work
I recently went to this payday one loan website to see how they really work. There is a website where you can just apply and instantly get money (or so it says, I didn't want to actually try in case it was a scam). You can just fill out your information online or by phone and then they tell you in seconds if you are approved and then you can get that money within days.
While this seems like such a great service, payday one loans make me nervous to even read about. I feel like some people could take advance because they think it is so easy to apply and get money and then end up in a lot of debt down the line. Right now our economy is sinking because of all of the loans that are out there that people and banks can't pay back. So now that the government has bad to bailout these companies and banks, they are going to get stricter about whom they are loaning money to and ultimately give out less money than they did before. So while I fear that one day when I apply for a mortgage or a credit card or maybe a student loan for grad school, that I won't get it, I think that it isn't such a bad idea that they monitor more closely who is getting money and who can pay it back.
The problem is though, I feel like since more people won't be getting money from banks or the government, they may turn to loans, like payday one or payday advances and end up in a lot more debt than they would if they had gotten it from the bank. Payday one loans have a high interest rate and are not really something someone applies for unless they are desperate for money. So while this may solve that person's problem for a week or so, in the long term it really is hurting them from all of the interest that they will be paying and when they do pay it back on time, they are not establishing credit like they normally would be doing from a regular loan. It really does make me wonder if that was the best idea for our country, or if we are just going to see it go downhill from there. I guess we will just have to hold our breaths and see.