So you have the payday loan in your hand, now what? Now you need to do what you intended with the loan. There are people who look at a payday loan like extra money when in reality it is money you should be using towards a specific bill.
These short term loans can help you when you are in need of urgent cash. Maybe your paycheck did not stretch far enough to cover all the bills and gas for the week. If you can rationalize paying the fee amount to get your next payday early, then you can consider a payday loan as an option. If you can’t afford to lose any money out of your next check, then you should count change and hope for the best. Payday loans are meant to help in emergency situations when you need fast cash to prevent a financial hiccup.
If you’re considering getting a payday advance, you should weigh all your options first. A perfect payday loan scenario would be: Deciding it’s worth the additional fee to use next week’s paycheck for something that can’t wait this week. In that case you could have the money set aside for this issue.
Perfect Payday Loan Example:
Mary needs to pay her mortgage on time, but her income leaves her $200 short. She knows she can make that money up with next week’s paycheck. Mary finds a payday loan company that will offer her a payday loan of $200 with a $30 fee. She decides that it is worth the $30 fee to pay her mortgage on time (since the late fee for her mortgage is much greater). Result. Mary has her money in 24 hours, her mortgage is paid on time and she is capable of paying off the loan with her next paycheck.
When deciding on a payday loan you must think carefully. Many times people will get in an overwhelming debt because they could not afford the loan to begin with. There are many lenders out there that will take advantage of that and give you a loan you can’t afford. This allows the payday loan lender to add additional fees and keep the loan going sometimes for months on end. Always take your financial responsibility into your hands. Find a lender with low rates and easy terms. Then work with the lender to help decide what payday loan option is best for you.
