“I can’t help going to pay day loan sharks, they’ve sucked me in!” 

This was a comment a gentleman made the other day when I was trying to convince him to stop giving his money to payday loan companies.

I was meeting with one of my clients the other day and one of their clients walked in and started telling us his whole life story. It all started when his mother passed away a few years ago. She didn’t have life insurance, so he and his wife ended up paying for the funeral. At the same time both of their vehicles went dead and they had no means of transportation to get to and from work.

He ended up going into debt to buy two vehicles and could never get above water from there. He started to rack up credit card debts to maintain the vehicles and to buy other luxuries. Through some bad advice he decided to declare bankruptcy and is now trying to get a loan to pay off more debt that he got himself into after the bankruptcy. No one will lend him any money because his credit is shot, so he goes to pay day loan companies to get a quick advance until he gets paid.

What’s sad is he’s blaming the pay day loan companies rather than looking within himself to solve the problem. He told me I should do something about these companies. I completely agree that pay day loan companies should be shut down. However, they are not forcing anyone to use their services. It’s a choice that people make to walk into their stores and borrow money at ridiculous rates.

I told him to contact me and I would be more than happy to look at all of his numbers to help him to get on the right track. I hope he calls, but for some reason I don’t think he’s going to, since he’s blaming others for his problems rather than himself.

This story is a reminder of the importance of having life insurance and an emergency fund. Life insurance is especially important if you have dependents. The amount depends on your situation, but in my opinion all adults should at least have enough to cover burial costs, so the burden doesn’t fall on their family.

I am all for emergency funds and have had one for many years. An emergency fun would have helped this gentleman if he used it to fix the two vehicles or bought inexpensive cars that were within their means.  Unfortunately they bought vehicles that neither one of them could afford which made their situation worse than it was. I will definitely give him a reality check when and if he calls.

Have you ever tried to help someone that didn’t see the error in their ways?


  1. Brent says:

    We should settle for less. I mean, why change your lifestyle if you're not earning that much? Being contented with what you have is the key to saving up and living debt-less.

  2. gregjohnson975182420 says:

    Payday loans are something that is beyond my comprehension. Maybe I am ignorant but I just don't understand why people don't spend a few months getting "caught up" then use a bank. Yes, I am probably ignorant =)

  3. adahat1 says:

    I dont want to start a war here but his attitude is not much different than the kids complaining about their college loans. In fact, in general we as a society look negatively on the institutions that "trap" us with debt when in fact we should all take a hard look at ourselves.

  4. bogofdebt says:

    I've never actually used one of those companies-I've come close but always managed to not have to do it. Mainly because I don't want to get into that never ending cycle of never having enough money to get out of it.

  5. cypran says:

    i really enjoyed my days when i applied for a payday loan may be you people went for the wrong company, i do my payment install mentally without stress

  6. cypran says:

    my pay day loan, well it really favored me

  7. cypran says:

    ma be is because i applied in legitimate company, though i paid an upfront fee. amvest.finance@gmail.com

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