Desperate people do desperate things.
And, if you want to know how valuable money really is, try and borrow some.
These are sayings that I always remind myself of when I come into financial trouble.
And I was in a lot of financial trouble when I was in my 20s and 30s.
Isn’t it odd how desperate people always seem to find the answers to their insurmountable problems on late-night TV?
I watched a lot of late-night TV infomercials back then because I often couldn’t pay my cable TV bill.
Back then, late-night TV was full of payday loan commercials.
I don’t mean traditional bank loans either. I sat there obsessing over whether I should apply for payday loans from some nameless company.
Or, from a Native American financial institution technically located on autonomous, sovereign land.
I tried to apply several times. I am ashamed to admit. But I was always declined.
I didn’t make enough money.
You don’t understand – I was distraught at being rejected (please keep in mind I was a goofy 20-something).
I only realize now how lucky I was to have been rejected in disgust by opportunistic, loan-shark-lite, payday lenders.
It was an impractical way of trying to deal with my financial problems. I would have just ended up in more debt than when I began.
When in a Hole, Stop Digging
It’s a horrible mindset, always looking for easy money just short of robbery.
What was I thinking? Desperately trying to borrow from payday lenders only interested in charging as much money as possible for me lending money.
I had no leverage. They could have withdrawn money from my bank account, at their leisure, on my paydays.
It made no sense the longer I thought about it (now, not then). I would have paid hundreds of dollars in fees and interest just pay some bills now, have no money in a week or two, and still be deeper in debt.
I can only contemplate in horror what would have happened if I had insufficient funds come withdrawal time on payday.
I could have ended up paying hundreds or thousands of dollars in fees for the sake of borrowing $300 or $500.
In my opinion, payday loans are for suckers.
They’re for people who don’t want to work harder, negotiate with their creditors (which is possible) and who seem to have a masochistic penchant for getting themselves deeper into financial trouble.
I was an accomplished expert at committing all of the aforementioned.
I am glad I never took out a payday loan, but it wasn’t for lack of trying.
The lenders I contacted in my youth could see I was a sucker, but they also saw I was a sucker they couldn’t profit from.
Allen Francis was an academic advisor, librarian, and college adjunct for many years with no money, no financial literacy, and no responsibility when he had money. To him, the phrase “personal finance,” contains the power that anyone has to grow their own wealth. Allen is an advocate of best personal financial practices including focusing on your needs instead of your wants, asking for help when you need it, saving and investing in your own small business.