My First Payday Loan

I received my first payday loan at 18. I was ecstatic as I went off to college with a $300 limit. I used it very rarely and as soon as I started making payments they allowed me to borrow up to $800.00. Yes! So, basically the year after I became reckless with my payday loans and even took out 2 more. The payday loan companies made it so easy. Although I realized it was not free money, there was still an immense amount of freedom when I went to a store and used my payday loan. Well, soon 2 years later I found myself back at school with no job. No longer could I pay payday loan bills and I started drowning in debt. Eventually, I did get a job and attempt to cut down some of my bills. I wish someone would of told me how easy it is to get in debt. Most young people don't take their parents seriously because they think they are lecturing them, but if a person my age or a bit older had told me maybe I could of avoid my problems!

Payday loans can be helpful to pay off big payments or in the event of an emergency but young people have got to be careful. Companies a few years ago increased minimum payments on payday loans because when you pay the minumum month after month you aren't cutting down your total balance. Yikes! I think in high school or maybe the first year of college there should be a seminar to teach students responsible spending habits. If students see directly what can happen to them and how being in debt can affect you we'd see less students battle payday loan debt. Honestly, the credit companies should be ashamed of themselves. I know their goal is to make money, but they honestly should realize if you're giving a payday loan to an 18 year old you are not dealing with someone who may have responsible financial habits yet. To all young people live responsibly! If not you'll have collection agencies coming after you and find yourself with less financial freedom in a few years when you do know how to manage your money. All young people who have an money questions should read Suze Orman's The Money Book for the Young, Broke and Fabulous. From advice on student loans, buying a car and more it's your bets bet to make the smartest decisions with your cash.
Donyel G.