Why Short Term Loans are Better than Credit Cards
This post is pretty different than most other articles and posts related to business and finance, because I’m going to get a little personal. On a personal level, I can’t stand what big finance and lobbyists are doing to the short term loan industry, and this is my response to them.
By the way, when I refer to “short term loans” I’m talking about payday loans. In other words, I’m discussing those loans that you see advertised everywhere — fast cash advances.
Of course, these are the loans that the media and pop culture love to make fun of and take on and attack. I think they’re wrong, even though it’s politically incorrect for me to say so. I think it’s wrong to attack these loans mostly because they’re often perfect for some people in some situations.
Call Me A Conspiracy Theorist…
Before I go onto the arguments specifically, I think we need to figure out who might be behind all of the bad arguments against short-term loans. Short term loan lenders are usually by small financial companies — mom and pop lenders, basically. What’s the opposite of a “mom and pop” financial company? Big finance. Just keep in mind that big finance might be behind the bad arguments.
Short-Term Loans Vs. Credit Cards
One of the biggest risks to consumers isn’t a short term loan. You can’t lose more than a few hundred bucks with a short term loan. A credit card can cost you tens of thousands of dollars. That’s why credit cards are even more scammy and are worse.
Short-Term Loans Vs. Losing AC
If a lady is pregant during the summer, it is a good idea that she get a short-term loan to make sure the air conditioning doesn’t go off. Of course it’s more expensive — that doesn’t mean it’s not worth it.
Like a Hotel
One of the most common arguments against short term loans is that payday loans cost several thousands in percentage points per year. That doesn’t make sense, because hotels would be the same way. Sure, they’re expensive over the long term… that’s why they’re called short term loans.
Final Points and Concluding Thoughts
I like short term loans and payday loans because they’re better than losing the power and electricity or even the AC. Getting one depends on your situation, regardless of what the big corporations might say.
This makes the entire cash advance discussion make a lot more sense.
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