There are many different dangers associated with payday loans.  These dangers can include financial peril, emotional stress, and self-esteem issues.  These dangers are all brought on by the circle of debt and the sensations associated with being in debt and taken advantage of.   

Some of the most obvious dangers of the payday loan are the financial dangers.  These financial dangers can include getting in debt worse than one can afford to get out of, a lowering of a credit score, blemishes on a credit history, defaulting or late payments.  While one does not often think of one’s credit score unless looking for a large purchase, it is something that one should be aware of.  The credit score can go up or down depending upon the actions of the individual.  Such actions can include on time payments to increase the credit score or late payments to decrease the score.  A higher score can win an individual a lower interest rate on loans.   

When engaging in a payday loan, one is saying that he or she does not have the funds to pay the various bills that are due that week.  This can mean a major blemish on the credit rating and history, dropping the score significantly.  Because these loans all have high interest rates, it can be difficult to pay the loan off in time, which can cause late or default payments, further ruining one’s credit history and rating.   

This financial peril can cause some non-financial problems as well.  Because one’s finances are in danger, it is not uncommon for people to become sleep deprived due to worry and then suffers from depression or elevated stress levels.  These symptoms can make doing basic tasks such as getting up or eating difficult and make it near impossible to do normal tasks such as going to work.  This can lead to further depression and stress.   

One’’s self-esteem can suffer greatly from a payday loan as well.  There are connotations that people think when they find out that one has visited a payday loan for whatever reason.  This can be further fueled when one is faced with the repayment of this loan.  This damage to one’s self esteem can take a lot of time to repair. 

With there being so many pitfalls to payday loans, it is best to avoid such loans if possible.  If one must use a payday loan, one should be certain of all of the costs and certain that one has the appropriate amount of money to cover these costs.  If one is able to anticipate these costs and plan for them, the stress, turmoil, and financial damage can be avoided, making it easier for one to remain sane while working with the payday loan center.  This sanity can make it so that the loan is paid appropriately, the money that one received for the loan is used appropriately, and there are no loose strings for one to worry about.  Any loan can be stressful; this type of loan can be more stressful than others.