My Alternatives Part II
Throughout the years of payday loan bashing, the alternatives proposed by the opposition have not been very realistic or comparable to the original product. They’re not convenient, consumer friendly, inexpensive nor cut and dry. Now, it’s been brought to my attention that some individuals consider borrowing from your 401 (k) as an alternative to taking out payday loans. Although there are some payday loan customers who regularly invests in their 401 (k), it is not representative of that population. Someone who has a sizable, vested 401 (k) is not the typical payday loan client. I would also assume that most people who invest in retirement plans also have some form of liquid savings to use in case of emergencies. In my opinion, suggesting such an alternative that doesn’t meet the needs of most payday loan consumers is certainly absurd and diluted, but Don Griffin of Action 9 news in North Carolina believes it to be worth mentioning. It’s also amusing when there are tips made by consumer advocates that are similar to those made by the industry and the tips are easily dismissed and shrugged off until they are noticed by an industry outsider. The article also mentions that payday loans should be paid back right away and that you shouldn’t take out a second payday loan to pay back the first. However, these are also tips that any reputable lender would advocate and suggest to ensure responsible use of the product.
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