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, while others create more financial problems themselves. As these small loans do help out with many emergency costs they are not appropriate solutions for others.
Say NO to online payday loans if:
1. You do not have a regular income which will support the payoff or payments towards your balance each. These loans require a fast payoff in order to be cost effective towards your monthly budget.
2. 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.
3. You are finding that you need those more often in order to cover the expense of the last one as well as still having problems covering your expenses.
4. You are taking the money out to go on vacation when you couldn't afford to go away without it. The fast payoff rate for these loans will create financial problems for you once you get back from your trip.
5. 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.
6. The money is going to be used to purchase gifts which you could otherwise not afford.
7. 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.
8. 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.
9. 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.
10. Do not apply for one of these loans if you have other financial resources available to you.
Online payday lenders are available with such convenience and ease that many are attracted to apply with one right away. It is a good strategy to look at all of your options available to you when needing extra money. Payday loans work best when to cover too many unexpected costs during a pay period and extra cash is needed to carry the budget over to the next payday. Anytime that there is already too much debt or the money is used for unnecessary reasons, there tends to be trouble brewing in your finances. If you have the dispensable income and no worries will come out of repaying your loan off with your next paycheck, what you do with your money is ideally up to you. These loans are high risk loans as they are most often loaned to people who are needing money to pay the essentials.
*Keep utilities from being shut off
*Put gas in the car
*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.