Gambling and Payday Loans: Should You Kick the Addiction?

Theoretically, payday loans exist to help people survive when they need unexpected short-term help. In reality, this type of speedy and easy financing product is the only way out for thousands of individuals who need money for gambling “right now” and are unable to get approved for a traditional bank loan.

Why gamblers take loans?

Payday loans provide fast cash that charges a gambling addiction. When the gambler is losing, they can simply apply for a payday loan, get cash right away and get back to the casino to win back their debt and the rest of the cash lost. In most cases, the person does not even need to go anywhere to borrow money – thos can be done via the Internet; there are lots of online payday lenders nowadays.

When they lose again, they find the next short-term lender to get some more fast money. It is like a vicious cycle, where the only winner is the casino and loan company.

According to statistics, In 2020, about 49% of US customers took Michigan payday loans for living expenses, including medical and utility bills. If we add gambling addiction to these numbers, the result is really frightening.

People develop gambling addiction because they typically feel lonely and isolated. They make a bet because they’re pressured to satisfy an irresistible striving – they can’t act another way. In this process, any person can get desperate and apply for payday loans as the only option to continue gambling: online poker, slot machines, etc.

Gamblers can easily get trapped into a vicious cycle of borrowing to pay gambling tabs, which makes them get more and more new loans to cover the existing debts. This is a bad (even life-threatening) idea that always leads to financial loss. About a year ago, a BBC published a news story about UK professional ‘footballers’ taking payday loans due to their gambling addictions. Fortunately, they managed to fight their addiction with the help of Sporting Chance, a non-profit organization, headquartered in Springfield, MO. This story shocked many “regular” bettors.  Although average gamblers are not losing millions of dollars, they are losing all money they have with online short-term loans.

This addiction does not catch people with certain character traits. It can affect anyone irrespective of their character, income or professional status.

Out of gambling debt

A person suffering from gambling addiction takes fast payday loans being confident that he or she will win and repay the debt. Unfortunately, this plan is not always successful, and the bettor is overloaded with debts that can grow into a huge amount within a year due to sky-high APR.

Those with the addiction are at risk of getting into this dangerous trap and they surely need help. There are organizations and technology products that are always ready to help. But this is not actually easy since many players have sociophobia, live in a fantasy world, and feel isolated.

If you have debts due to your addiction, you probably still believe that you will win and get out of the trap you are in. But actually, you need to stop making bets and seek help — usually physiological counselling that helps fight gambling habits.

Protecting yourself and your loved ones from a dangerous gambling trap and excessive dents is essential. But, one more important thing is that a person should avoid advertisements and temptations to make another bet since the addiction may remerge with a new force. Until bettors crush that obstacle, every day contains a new risk.