I actually winced when I looked at my bank account today. One of the payday loan places that I had borrowed money from (yes – just 1 of them) had resubmitted a check for payment after I had paid my bank account’s overages off with my tax return.
Oh! The folly! I should have first went for my bankruptcy before I had placed my money in such a position, but I had thought the dust had settled, as it has been nearly a month since I had reached the point I could no longer service such debts honorably.
The lesson here isn’t about getting one over those businesses that exist to provide quick and easy and expensive loans of small sums. The lesson here is to avoid them at all.
Whether it is a pay day loan, a title loan, a store card, credit card, 2nd mortgage, equity line of credit … One must keep in mind always that credit is a tool, and should be used wisely. The best credit is used to purchase and further assets – a mortgage on a property for your business might be good if it increases revenue enough to cover itself. Or using a credit card to buy raw materials in order to produce products. The next best use of credit is for emergencies – in order to keep the day-to-day things going, to cover an accident, etc.
The time to walk away from any credit, though, is when it would be used to further luxury items that could not otherwise be afforded, or to further situations that are not practical.
My current payday loan situation started over a year ago as I was left stranded in an apartment after my room mates had left and the new room mates failed to work out. It would have been wiser to pack it up, rent a storage facility or sell furniture, and couch surf for those few months… But instead I pulled from one payday place, then another, and so forth.. And even after last years tax refund had paid most of it off, some were allowed to fester, and lead to an overly expensive Christmas 2015 and now financial ruin in 2016.
This mess is holding up funding for my designs. OWC is frozen waiting on that bankruptcy, which is now postponed by a simple blunder.
So beware the daemons you summon up to serve you, for you may end up serving them instead.