Buy Now, Pay Forever

I saw first-hand the effects of payday loan debt after my young parents moved to Texas from Costa Rica. For a while things were alright...until my parents started using payday loans to pay for other payday loans. They were in their mid-twenties, all alone in a state with their eight-year old daughter. From my childish and limited perspective, I only noticed the silly things: my mother was always grouchy, and she didn't get her hair or nails done anymore. We didn't go out to eat, not even to McDonald's. That strange toenail fungus my dad had went untreated (although now I don't think money is to blame; it's still untreated). Not much changed in my world: My focus, my parents told me, was school.

Once, when a montage of unlucky things happened (my school tuition was due, my mother's car needed repairs, and the electricity had been turned off due to lack of payment), my mother took out a Payday loan. Although the real payday was only a few days away, the urgency for cash was immediate. I remember holding her hand as she waited in line; I remember the faces of everyone else there. I was the only child, and they seemed to stare at me with a strange pity. There was a tall African-American man with gold specks in his eyes, and he gave me a quarter to buy bubble gum from the candy machine.

I can't say I'm rolling in dough, but my parents' financial situation is definitely better. I'd like to say they made it, but they're separated now: My mother still lives in Texas while my father is in Costa Rica. They still talk often and are good friends; sometimes they laugh about the debt situations they got into. Part of having enough money and avoiding payday loans is the hard work you put into saving and working, and part of it it just luck. Another part is doing independent side projects - things you do in your spare time matter more to your mental sanity and can sometimes benefit you financially. If, however, you live only to work and keep your account balance above zero, that futile mentality will poison your life and eventually make things worse. Debt is a part of most people's lives, but it's not always a bad thing. When you manage your debt well, you build credit, and when you manage your debt poorly, you learn. Even though you might not get the things you want, finish college on time, or even have electricity for a while, debt does not have to conquer you psychologically.
Lisa M.