The Art Of Haggling And Other Money Secrets

3 Good And Bad Reasons To Get A Payday Loan

Even if you have stable employment, just one unexpected thing can throw a wrench in your financial plans and leave you in desperate need of fast cash. Thankfully, payday loan providers are now sprinkled across the country and perfectly accessible for the average working individual who needs a little help. These loans are easy to get with few upfront requirements and most of the time, you can walk away with the cash you need after just providing a few documents and signing a paper or two.

While easy to obtain, there are always situations when a payday loan would and would not be your best option. Take a look at these three good and bad reasons to get a payday loan. 

Good Reason: You need to borrow money to pay a bill. 

It is that electric bill you forgot was due, your car insurance that must be paid before it gets cancelled, or that high-interest loan payment you cannot afford to miss–all of these are good examples when getting a payday loan could be a really good idea. Getting just what you need to pay your bill is easy and can be paid off when you get paid again. 

Bad Reason: Your friend or family member asks to borrow money to pay a bill. 

Sure, it is good to help people out when you can, but borrowing money to loan to someone you know because they need to borrow money is not always a good financial decision. Not only will you become responsible for repaying the loan, loaning money to someone you know by taking out a payday loan will actually mean that doing so will cost you money because there will be interest and fees involved. 

Good Reason: You are running short on funds because you just switched jobs. 

As long as you have concurrent job history, you can still usually get a loan at a payday loan provider, even if you just recently switched jobs. If your change in pay schedule has left you a little short, getting a payday loan could be a good idea until you get yourself financially settled.

Bad Reason: You need money because you've had to take off of work. 

Payday loans work well for unexpected expenses, but borrowing money because you're experiencing a problem that leaves you missing a lot of days off of work is not the best idea. In situations like this, it is likely that you will have short paychecks in the coming weeks, which can make it really hard to repay your payday loan as expected. 

If you have more questions, contact a payday lender like Advance U Cash.