Payday loans are not an answer for everyone’s financial troubles. Some people use them wisely and get the cash boost needed to prevent a multitude of problems and fees. Others create more financial problems themselves with this financial option. As these small loans do help out with any emergency costs, they are not appropriate solutions for others.
When To Say NO To Payday Loans
Say NO to online payday loans if:
- You do not have a regular income, which will support the payoff or payments towards your balance each due date. These loans require a fast payoff to be cost-effective for your monthly budget.
- You are going to be using the money to gamble. Gambling debt is hard enough on finances, so falling behind on a payday loan will bring additional problems.
- You are finding that you need those more often to cover the expense of the last one and still have problems covering your expenses.
- You are using the money to go on vacation. If you can’t afford to take a trip, you probably shouldn’t be going. The fast payoff rate for these loans will create financial problems for you once you return.
- You need to take out more than one payday loan to cover your emergency cost. The fast payoff rate for these loans will only add to your emergency costs within a few short weeks.
- The money is going to be used to purchase gifts that you could otherwise not afford.
- You are using the money to help you get out of debt. When your debt is already piled high, these short-term solutions will snowball previous debt quickly.
- The money will be spent on entertainment. This funding should come from a budgeted section so as not to take away from regular bill payments.
- The money will be used to shop for wants instead of needs. Save for your wants. Putting your finances at risk is not worth the cost of fees and interest for a necessary item.
- Do not apply for an online payday loan if you have other financial resources available to you.
Pushing The Loan Payments
Online payday loan lenders are available with such convenience and ease that many are attracted to apply with one right away. It is a good practice to look at all of the available options when needing extra money. Payday loans work best when covering too many unexpected costs during a pay period, and extra cash is required to carry the budget over to the next payday. When you have too much debt or your income is used for unnecessary reasons, there will be trouble brewing in your finances. If you have the dispensable income and you can push repaying your loan with your next paycheck, you should be fine in this temporary short-term loan.
Ideal Use For Payday Loans
Payday loans are high-risk and people who are needing cash to pay the essentials need them. Below are some necessary situations to use them:
- Keep utilities from being shut off
- Buy groceries
- Put gas in the car
- Car repairs
- Short term medical costs
- Buy a prescription
These are just a few of the reasons to get a cost-effective online payday loan when going without the money will bring you a slew of additional late or overdraft fees. Many other expenses should be managed and possibly pulled from a savings account.
Too Easy To Access
Some people have multiple envelopes set aside for different expenses: Christmas, vacation, car, food, clothes, etc. The desire is there, but we also know the money is there. We plan to pay it back soon after we borrow from it. Soon enough, there’s no money when we really need it. There are also online bank accounts that take a couple of days to transfer money out. Since it takes longer to attain the funds, maybe it won’t be much of an option. The money will stay in that online account, after all. Similarly, cash advance loans are easy to access. You go online and apply for the loan. You get approved, and money is available the next business day. How convenient is that? Be responsible. Borrow if it’s an emergency, and you know you can pay it back on your next payday. If not, keep moving and research other options.