Image from
Image from


Every year, 12 million borrowers in America avail for the payday loan up to $7 billion in total amount. It has helped people who need a small dollar amount which one can’t get normally from a bank.  However, advocacy groups call this type of loan as “vicious predators”. And even Consumer Financial Protection Bureau is setting up new rules that will ultimately end up this type of loan.

According to Forbes, people are making subjective judgment to payday loans instead of rational arguments. For all you know, payday loans, despite their high interests and fees offer opportunities for borrowers to survive in their financial struggles and the 22 year old single mom; Azlinah Tambu from Oakland California is one of them.

“One day, my car broke down but I need to drop by child to school and go to work. However, I don’t have the money I need for the repair. Unfortunately, I have no savings to spare, no credit card to use and no friends or family to help. So, I decided to take payday loans from 5 different payday lenders”, Azlinah said.  She borrowed different amount of money from each lender ranging from $55 – $300 dollars.

Repayment was tough for Azlinah. It means going to all her lenders every payday to pay off her bill. This compelled her to find a better job. Eventually, she decided to get a degree. Now that she has a good job and is in a better financial standing, she was asked if payday loans have to be stopped. And this was her reply; “I think payday loans must continue to exist”.

Azlinah was asked if she will ever apply for payday loans again and she said; “I am working very hard to pay back all my loans. This is to retain my good credit standing, just in case I will need to apply for a loan again”.

“Living cost has escalated up to 25% in just 5 years. And payday loan is helping families manages to bridge the gap between payday and bill payment day. This type of loan will surely serve its purpose best when executed correctly”, personal finance expert Michael Ossei said.  A lot of people have poor credit standing and banks are turning away from them. Hence, their only option is to apply for a payday loan”, Michael added.

Stopping payday loans will not stop people from getting so much debt for they will surely find other ways to get the funds that they need. What everyone really need is proper orientation on “responsible borrowing”. This way, payday loans and other types of loans will work to their advantage.