Payday lending is usually considered to be for amounts that are less than one month's income.
And? Your monthly income is $200 over expenses .
The point is that it's for people that are living hand to mouth. They're not saving a cent, living constantly on the brink. For them it makes a huge difference to get paid a few days earlier.
But this is also why even free payday loans seem to me like a very bad long term idea - if you are living that close to the edge, how will you ever be able to get out of debt?
Payflow: https://www.payflow.es/ (surprisingly, no english version) This is a fantastic innovation if it takes off and if the charges aren't prohibitive; it has the potential to obliterate predatory payday lending. In a world of free instant automatic electronic payments, there's no good reason to delay salary payments until the end of the month.
Interesting, I didn't know payday lending was a thing in Spain. Delaying salary payments serves two purposes: first, to benefit the employer by keeping your money in their account longer; and second, at least culturally, to force you into a budget cycle "for your own good." People accept these things culturally but there's no reason they should have to. When I moved to Germany from the US I was a little shocked to di…
I don't know if those are the historical reasons, but I'd say the main reason now is that it simplifies book keeping. Just like even the most solvent companies don't pay their purchases right away, you pay on invoice and batch things.