Payday loans make it possible to access up to $1000 quickly (usually in 24 hours or less), and the idea of a payday loan is very tempting. Who wouldn’t like to wake up with $1000 more than you had when you went to bed?
The confusion here is that a payday loan is nothing like a spammy internet trend. You will not get a free laptop for naming the pictured celebrity. There are people who only consider the ‘pretty’ aspects of a payday loan (fast and easy access to cash!) but who also neglect to acknowledge that a payday loan is, in fact, still a loan.
A payday loan is a short term loan, usually intended to hold you over until your next payday. A payday loan is a great way to take care of an unexpected financial need that can’t wait. An example of an urgent financial matter that a payday loan is good for would be emergency care repairs. In this situation, if the matter is not resolved quickly it could snowball into larger problems.
The best thing about the payday loan solution is that there are rarely any hassles to be approved for a payday loan. Most payday loan companies do not use a credit check to qualify an applicant. With the payday loan solution, if you have an income you can be approved for a payday loan. So it can be very easy to quickly access up to $1000.
This does not mean that you should apply for a payday loan every time a temptation arises to have access to a cash advance.
Payday loans should be used for things that can not wait until your next payday. This might seem like common sense, but many are tempted to use a payday loan for ‘non-urgent’ matters, such as gifts.
The holiday season is a popular time for payday loan services. Under pressure to purchase and give more than you can afford in gifts for friends and family, a person may resort to ‘extra’ money.
However, a payday loan is by no means ‘extra money’. A payday loan is a short term loan, with lower rates than loans that specialize in ‘bad credit’. The payday loan service uses income and financial responsibility to determine eligibility for a payday loan instead of credit, so payday loans are an affordable way to access a short term loan when you need it.
Using a payday loan for something you want can be an example of financial irresponsibility. A payday loan will usually be repaid on your next payday, along with a lenders fee. If you use a payday loan to shop for gifts, you will actually be spending more money than if you just waited until your next payday.
