Pay day loans and the cycle of indebtedness
Pay day loans may seem like the ultimate contradiction, but it is nothing more than an indicator of the feedback loop of indebtedness. Arguably, pay day is meant to be the time of the month when one’s financial woes recede into the abyss, with little to worry about in terms of money since the pay making its way into ones account takes care of the financial needs that come with being a grown up. Yet that is hardly the case, with a remarkable number of people utilizing the money they get at pay day to service debt.
A pay day debt that cannot go without being serviced is the pay day loan. This is a loan that people acquire during the course of the month when they’re properly cash strapped and in need of a financial lifeline. They must be cash strapped indeed for this type of loan requires that the money borrowed be repaid with the salary received on pay day. Which is to say that if one was so completely desperate during the month with a ton of expenses waiting to be pad; one could use the entire salary on pay day solely for repaying loans which would leave the option of getting into more debt in order to pay for monthly expenses other than loans.
This is how one would find themselves trapped in the cycle of debt, because one’s salary would always be used to service loan debt and thus leaving little for the month expenses, which then forces one to seek more debt to cover those expenses. With pay day loans, it’s probably best to keep them to an absolute minimum and for truly desperate cases left you find yourself playing debt catch-up every month.
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