Should I Take a Payday Loan or Is There a Better Way?

Have you ever felt so pressured that a risky option starts to feel reasonable? Like, you know, it's not ideal, but it feels like your only way out.And now you're standing there trying to choose relief without creating more pain later. And if that's where you are right now, today, we're going to slow it down and find a better path forward. Hello, friend. Ralph Estep Jr. Here.Welcome to Financially Confident Christian. My mission every day is to help you break that cycle of financial shame and find confidence.And I know the emotional pressure of needing that quick financial solution. But today I want to really dig into a listener question that we got of whether a payday loan is a real solution or whether there is a better path.So let's get right into today's listener question. This listener question was sent into us by email.This is what they write, Ralph, I'm thinking about taking a payday loan not because I want to, but because I feel desperate. I want to stop for a second right there if you feel desperate. Big red warning sign. But let's continue. Part of me knows it might bring quick relief.Yet another part is afraid it will only make things worse later. I don't want to trade one problem for a bigger one. I want to make a wise decision even in this pressure.How do I tell if this is a real solution or a trap and what's a better option for me right now? Let me start by saying thank you so much for that question. This whole show is fueled by your questions.And if you've got a question for the show, go to financiallyconfidentchristian.com question. And I know the pressure you're in right now, and that's a hard place to be. You don't want to feel careless, but you want to be concerned.And I really appreciate that. You're not trying to make a bad decision. You're trying to solve a real and urgent problem. And I just want to commend you right now.The fact that you've paused to even ask that question is already a huge sign that you're living in some sort of wisdom, friend. That pressure is real.And when you feel cornered, and that's what I hear you saying in your message today, when you feel cornered, even a risky option can start to feel reasonable. But I want you to hear this today. Pausing long enough to ask this question is already wisdom at work. So let's jump into this right now.The most damaging financial decisions that I see people making oftentimes don't come from being ignorant. They don't come from being uneducated. They come from a sense of urgency.Put yourself in the same position when something feels like it has to be solved immediately, like, I've got to figure this out right now, I don't have any time to think about this. I just got to do it. It's very hard to evaluate the long term impact of that and so easy for us to jump at those quick solutions.But most of the time, dare I say, probably 99% of the time, that's not always the best solution, that's not the wisest solution. And that relief you feel today should never create more pressure tomorrow.The most damaging financial decisions often don't come from ignorance, they come from urgency. So let's get right into the main point of today's show. How do you choose that relief?How do you find that thing to solve your immediate problem without creating more pressure later on? And this is where I want to talk again about my faithful framework.If you listen to yesterday's show, I introduced what I call the new faithful framework. And that's we're going to spell the letters in faithful.Each letter is going to be a clear point as we work through each of these questions moving forward. So let's jump right into it. We're going to start with F. We're going to face the reality. This is our awareness step.We got to start by asking ourselves what is actually going on here? Unfortunately, based on your email, I don't have a lot of the background information.It's pretty clear to me that you've got an immediate financial crisis. But I would start by asking you, what is the real need here? What is it you're actually needing to do?What is the real dollar amount and is there actually a deadline? Because if the situation is truly urgent, then that's one thing. But maybe it feels urgent, but it's not.Because in our own minds, when everything feels urgent, your brain just skips out of clarity, skips out of wisdom. But that's where you actually get to a point of finding wisdom. When you understand exactly what's going on, what is the need? What is the time frame?Let's move into the A. We gotta aim clearly. This is where we build our vision. This is where we think about what our goals. Our goal here is not simply get cash fast.The fact that you've paused, the fact that you've reached out and asked me tells me that you're not just looking for some quick get fast decision.You're trying to make a decision that gives you relief without having that long term damage, and in this particular case, a payday loan might feel like relief. I actually hate payday loans. I think they create this cycle where you're going to get the next one and the next one and the next one.But you're right to question whether this protects your future. Not every solution that's offered to you is a wise solution. Yeah, that path might reduce the pressure right now, but not all relief is good relief.Wise relief solves the problem without creating a bigger one. And that's what you're talking about in your question.You're saying, wait a minute, Ralph, I want to get this payday loan, but what is this going to trigger in the future? But let's pivot to I. We gotta identify timing. I already talked to you a little bit about this in the awareness phase.Ask yourself, do I really need to solve this right now or does it just feel that way? Maybe this is a time to take a 24 hour pause and really think about the decision.Because as I said earlier, that urgency pushes you to make fast decisions. Unfortunately, many times when we make fast decisions, they turn out to not be great decisions. But that wisdom creates space.And even a small pause can reveal better options. As I said, urgency pushes fast decisions, but wisdom creates space. But let's go to the T. This is our think of options part. This is my favorite part.This is where we brainstorm. The first thing we've got to acknowledge is a payday loan is not the only option. There are other options. Maybe you got to think through those.Let me give you a couple examples. Maybe you ask for a payment extension. Maybe this is because you've got this bill coming up and you're like, I just don't have the money to pay it.Pick up the phone, call the creditor, maybe set up a payment plan. Maybe they'll let you break it into pieces. Borrow from someone you trust. Maybe this is a short term bridge and you're just.Maybe you got, maybe you missed some hours at work, maybe you were ill, maybe you had a short in your, in your shift. And maybe you still need to get a loan. Look at lower interest options. That's one thing I hate about these payday loans.They make it sound like you're not paying any interest, you're paying interest. Maybe you need to do some soul searching and look at delaying or reducing another expense so you can figure out how to pay this one.When I used to work in credit unions and when I worked with collection work, maybe this is a time to sell something. Maybe you need to call the creditor and ask for some hardship options.Maybe you need to look for some temporary income, get some extra shift at work, or just really rework your budget. So before you choose the fastest option, make sure you've explored the safer options. Which leads us to H the this is where we have to build a plan.This is the action step. Here's what I'm going to recommend you do for your particular situation. Write down the exact amount you need.Your listener question didn't really tell me that. So start by writing down what you need. Write down the deadline, and then think about some alternative to try first.Maybe you make that call or send that message to the creditor. Don't make that payday loan decision because it's oh, it puts the pressure off until you get to that step.Because so many people assume there are no options because they haven't asked yet. So make that call. Ask for flexibility. When I worked at the credit union, I loved those calls.I would work with people I know they had an intention to pay. There may be more options than you think because that pressure is going to say to you, do something fast. Just get it done. It's easy.Sign the paper and move on.But wisdom says, take the next right step, but let's pivot to the F. This is where we're going to bring our faith and surrender into it, bring God into this pressure. Talk through it in your own mind. Most of the time, it's not just a financial issue, it's an emotional issue.And I can feel that in your writing today. I see that you have pressure, you have fear, and you have this made uncertainty that you're going to make it difficult to make the right decision.And when you're living in that reality in your own mind, it makes it so difficult to think clearly. But here's the beautiful part of our God. God meets us right in the middle of that pressure. You don't have to make this decision alone.There's grace and not shame. Maybe you just say to God, lord, I feel pressure right now. Help me choose what is wise, not just what is fast.Because God can meet you right there in the middle of that pressure. Not only after the decision is made, but then I want you to really focus in on understanding your progress.That's why we do you, because I want to talk about momentum. In your particular case, progress might look like instant cash, but that may not be the best progress.You have progress for you might look like avoiding that payday loan trap. I honestly think they are traps. I do not support them. I think they're bad things to do. Progress might be making that one call.Maybe you reach out to that creditor and you're like, ralph, I never thought about that. Let me call them. Maybe you wait 24 hours because every time you avoid this harmful cycle, you create momentum.Just remember, progress is not always instant relief. Sometimes progress is refusing to make tomorrow harder. But let's go to L. We also have to look ahead.You have to really ask yourself, in this particular case, once you've solved this problem, ask yourself what created this pressure? Was it a gap in my income? Was it unexpected expenses that I need to do a better job of managing? Do I not have much margin? Is it a bill timing issue?Hey, maybe we got to be honest and say I've been overspending. Is it something that can be planned for the next time this happened? And this isn't a place to put yourself into a level of shame.This show is never about shame. It's actually about breaking free of that.The goal here is to identify the pattern and solve those immediate issues so that this prevents this from happening in the future. Because once this moment passes, don't just move on. It's real easy to do that.So I've solved the problem, just going to move on, learn from it so that same pressure doesn't keep repeating. Here's the big idea for today. Quick relief that creates ongoing pressure is not a solution. It's just a cycle.And that's what worries me about these payday loans. But let's get into today's win. Today's win is this. Delay the decision. Finish this sentence. I will wait X hours or days.And I'm going to explore one alternative before deciding and then write it down and then choose one of those alternatives and take action on it. Just think about what I've said today. That space, that buffer, that pause will let you make better choices. Let's get into our scripture for today.Today I go to James, chapter one, verse five. It says, if any of you lacks wisdom, let him ask of God to give it to all men liberally and and unbraideth not, and it shall be given him.And I like this verse today. Because when we find ourselves in moments of pressure and we're all going to have pressure in our lives, God invites us to something beautiful.He invites us to seek wisdom and not make rush decisions. So that's what I want to leave you with today. How about we pray together?Heavenly Father, I lift up the person listening right now who feels this pressure. You see their need, you see their situation and you understand that weight they're carrying.So right at this moment, Lord, I ask that you would bring calm into this moment. Give them wisdom to slow down, Lord, to really see clearly and to make the best choice for what is right.Provide for them in ways that they may not even expect. You're a Lord of abundance. We know you can do this.Open doors for better options to them, Lord, and protect them from decisions that would create more burdens down the road. But most of all, Lord, remind all of us we are never alone and you're with us, even here, even now. And I ask this in Jesus name. Amen, friend.Not every fast solution is a good solution. You got to choose what protects your peace and not just what gives you the quickest relief.So today, delay that decision and give yourself a little space. Explore one better alternative before you move forward.And if you want to talk through things like this, or maybe you found a better way yourself, I would love to hear what you've done.You can leave a voicemail for me by going to financiallyconfidentchristian.com/voicemail we'll put a link in the show notes, but again that's financiallyconfidentchristian.com/voicemail thank you so much for joining me today. I just want to encourage you stay financially savvy. May God bless you and you have a truly great day today.