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People of all income levels use payday loans
#1
According to this article Taking charge of your future people of all income types are using payday loans. It's hard to believe that people making $100,000 would use a $300 payday loan.
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#2
(12-28-2017, 08:04 AM)Michael Puttman Wrote: According to this article Taking charge of your future people of all income types are using payday loans. It's hard to believe that people making $100,000 would use a $300 payday loan.

It is hard for me to believe as well that people with that kind of income take out loans. I always believed that if you do not have money for something you cannot buy. This usually goes for taking out loans to gamble, video games, and other unnecessary wants that you can live without. A person who earns $100,000 can easily start saving at least 20% of each paycheck for a raining day to prevent loans. Loans should be the very last choice if you do not have any money for rent, food, or other requirements to live. Interests will make $300 dollars take forever to pay off and you will be paying back like $600. Saving is key and there is no excuse for a $300 payday loan with that amount of income. They could have saved at least $2,000 with what they make.
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#3
$100,000 a year sounds like a lot, but it isn't always. If you have a big family, with a partner who doesn't work, student loans or a home loan to pay off, or any other number of things, that money can disappear quickly. Payday loans are a fast and easy way to get through an emergency when you're living paycheck to paycheck, even if it will cost you money in interest. Especially for someone earning a larger amount, if you need the money right away, the interest might not mean so much to you. You just need the money then and there, what you pay in future doesn't matter.

It's a little sad that so many people find themselves in this situation though.
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#4
Well, that is really possible if that $100,000 come in installments, say monthly. There comes a time when an emergency situation occurs and you have already allocated the money you got to important matters, then that is the time payday loans are very useful. It can also be when you see a great offer, like a gadget, or even investment or capital, this type of loan comes handy indeed.

The problem comes when you avail the loan for luxury or a want which is not really needed. It becomes a liability as you have to pay it with interest.
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#5
(12-28-2017, 08:04 AM)Michael Puttman Wrote: According to this article Taking charge of your future people of all income types are using payday loans. It's hard to believe that people making $100,000 would use a $300 payday loan.

I find it hard to believe as well, though I guess it could happen in certain situations. I think that if people making that kind of money got into debt somehow, they would likely need more money to cover it, so a payday loan would not cut it. If the article is right, it seems most people that are really struggling don't even have a high school diploma or don't speak english very well.
Btw, I have to say that the rents are ridiculously high in some areas/states in the US.
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#6
Payday loans are great cash advances for anyone who can pay them back on time. Lately it has become the custom for people to take loans no matter what. Anyone above eighteen years of age with a monthly salary and a checking account is eligible for the payday loan. Even people with a bad credit history are guaranteed to get the loan when applying for a bad credit payday loan.The problem arises when they are out of money with nothing to payback... And get depths beyond their pay....Firstly people should take loams only if they are in the condition to payback.... Secondly there are many spare jobs and part times jobs that generate good income... Its will be better to earn and work hard than have easy money and stay in depths...
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#7
It is not really hard to believe that some people tend to borrow a 300 dollars even tough he or she has a huge money. The fact is we as a humans there is sometimes events where we are not aware that would come sometime.I think the persone you are referring to had a little shortage on his monthly income so he needed to borrow cash advance . It is okay as long as you can pay it on time.
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#8
(01-01-2018, 09:59 AM)Sara Khan Wrote: Payday loans are great cash advances for anyone who can pay them back on time. Lately it has become the custom for people to take loans no matter what. Anyone above eighteen years of age with a monthly salary and a checking account is eligible for the payday loan. Even people with a bad credit history are guaranteed to get the loan when applying for a bad credit payday loan.The problem arises when they are out of money with nothing to payback... And get depths beyond their pay....Firstly people should take loams only if they are in the condition to payback.... Secondly there are many spare jobs and part times jobs that generate good income... Its will be better to earn and work hard than have easy money and stay in depths...

It's true that people look at getting easy money without having to work or suffer for it, and when they use up the money without having any means to paying back, they wallow and drown in debts. Personally, I would blame the financial system for making it easy for such people to get access to such loans without a good background check on their possibilities of paying back. 

Over in Nigeria, I doubt any financial institutions would listen to you about getting a loan without a good collateral that is valued at the wroth of the loan applied for. This way, should you not pay up as and at when due, the financial institution have right to seize such property and make use of it or probably sell it.
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#9
Sometimes people with those large incomes live their lives as if they will never run out of money that sometimes they spend money beyond their capacity and ends up availing some loans because they knew they have sure money coming and they can totally  pay for it.
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#10
It's quite possible that people earning six-digit income would still require payday loan of $300. They may have maximized other debt sources such as credit cards or installment and payday loans may be the only option to obtain cash immediately. These people are typically those who have no savings to turn to and are living a lifestyle they can't afford.

They may also be sole family breadwinners facing a financial crisis that a little bit of money, regardless of the cost of borrowing, will be a huge help. In some cases, the payday loan proceeds may be used to pay off the minimum amount due on a credit card which can have more unpleasant consequences if not paid.

I would assume, though, that payday loans are more common among people struggling with lower salary while raising a family with growing needs.
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