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Investment Expert J.D. Vance’s Memoir Points Out Benefits to Payday Loans

J.D. Vance is a former Marine, law school graduate, and current principal at a major California investment firm. His bestselling memoir, Hillbilly Elegy, details his life growing up in Kentucky’s Appalachia region. It showcases the daily life of the poor, and it discusses how he went from being a poor kid in a steel town to gaining a law degree and great job in investments.

Vance’s struggles and achievements have been impacted by payday loans. His experiences define exactly why payday loans are so vital. Government plans to regulate payday loans, potentially making them impossible to get, is exactly why his story is so important.

No One Eagerly Applies for a Payday Loan

There’s a big misconception out there about payday loans. The people who take them out are not doing so for fun. People who apply for a payday loan have reached the very bottom. They take out payday loans out of desperation. They’ve exhausted other options and can’t get the money they need.

A payday loan potentially becomes the difference between paying for medication a child needs or watching that child suffer. These people don’t qualify for credit cards or loans. They run into a situation we all face, such as emergency medical expenses due to a sudden illness, and they can’t refuse to pay for a few days. A short-term cash loan is all it takes. When their paycheck arrives, they pay what they owe and it’s done.

The Truth About People Who Apply for Payday Loans

Politicians look at the high interest rates and categorize payday loan companies as loan sharks. They look at the fees these lenders charge and then what a bank charges. They focus mainly on getting those payday lenders out of business. They don’t stop to think about who is being hurt in the process.

Low-income families living from paycheck to paycheck often need a helping hand. Their credit score’s too low for a loan or a credit card. If paydays come every two weeks, or even a month apart, emergencies arise that lead to desperation to get cash in hand for a few days.

The author talks about a situation he personally faced when it comes to payday loans. His rent was due, but he hadn’t received his pay yet. He took out a short-term payday loan, paid his landlord on time, and repaid the loan as soon as he got his paycheck. The loan cost him a “few dollars” in interest and saved him from paying bank overdraft fees and a landlord’s frustration.

Taking out a payday loan doesn’t make anyone a bad person. Payday loans are vital to people with limited income. As long as they’re used correctly, payday loans help keep people from sinking deeper and deeper into a dark hole worrying about their finances between paychecks.

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