Payday Loan Tips — Predetermine Your Need for a Payday Loan

Think long and hard about the true need before getting a quick payday loan for a little spare cash. Payday loans are designed for emergency circumstances that can’t be avoided, they are not a long term “get you out of debt” loans. But Beware. You can easily get stuck in the payday loan lending trap. Especially if a lender pushes you into borrowing more than you can afford. This type of short term loan should not be taken with a grain of salt. You need to predetermine your need, then weigh all your options. When you decide that a payday loan is the way to go, find the lender that gives you the confidence you made the right choice.

Scenario: You’re in a predicament. Bills have to be paid this week. Lo and behold, you’re out of money. Groceries and gas are out of the question. And you’re gathering up change trying to make it work. Like thousands of other people, you consider a payday loan as a possibility. The first step in applying for a payday loan is to sit down and determine how much loan you can afford. Then look for alternative answers.

Common Alternatives:

Contact your creditors and ask if they can lower your payments or work out an optional repayment plan.
Seek help from a local non profit credit counselor to consolidate your bills.
Apply for a larger loan at your local credit union (credit check and long term payments should be considered when deciding this option).
Consider overdraft protection lines of credit to avoid large bank fees.
A cash advance on a credit card (be careful; many credit card companies charge high APR rates for a cash advance).

After you have considered the alternatives and come to the decision of getting a payday loan, be responsible about it. Only borrow a small portion of your next paycheck. That way you don’t have to get another payday loan when you pay off the current one. Don’t make that mistake. It’s too easy getting caught up in the never ending cycle of payday loans.

A payday loan should be a positive experience to help you obtain additional cash until the next payday arrives. There are some steps you can take to make sure this happens. Take a look at your monthly budget and try to cut down on whatever expense is unnecessary. Determine the true need for a payday loan and only borrow what you can payback allowing for daily living expenses on that particular pay week. Work with a good lender that offers low rates and wants you to pay back the loan on time avoiding the continuous cycle of payday loans.