About Payday Loans
What is a Payday Loan?
A Payday Loan is a small, short-term loan used by millions of Americans to cover unexpected bills and/or expenses prior to one's next paycheck. They are a great way to avoid bounced check charges from your bank, late fees on your utility bills, credit cards or car payments or just extra cash for that unexpected trip to the dentist or auto mechanic.
When should I use a Payday Loan?
The best time to use a Payday Loan is when the fees for borrowing the money costs you less than the charges you would incur for things like bouncing one or more checks, late charges on car payments, house payments, credit card payments, utility bills, etc. Sometimes expenses like unexpected car repairs or medical bills occur, and at the worst possible moment. Using a Payday Loan to get your car fixed immediately could be significantly less expensive than missing two to three days of work. And then there are the times when you just want to have extra cash for...whatever! Just be sure you know how much it is going to cost you for this privilege prior to signing a contract.
When should I not use a Payday Loan?
Payday Loans are meant to be a short-term solution to an immediate need. They are not meant to be used for any long-term financial situations and should generally not be used on a whim. They are useful for getting your utilities turned back on (or avoiding a disconnect in the first place) but would not be such a good choice for making a down payment on a car (these types of activities should be planned out, and budgeted for, well in advance). You should also not use a Payday Loan when you can not comfortably afford to pay it back with your next paycheck.