If you aren’t really sure of how it happened, but do know that somehow you are actually in the middle of a cash crunch, then you need to figure out what type of risk tolerance you actually have. You see, while it can happen to many of us, the truth is that if you don’t have enough cash in your bank account when your bills all start to come due at the same time, you could be facing a combination of horrible outcomes. Things like overdraft fees (which can hurt the terms of your agreement and jack up your rates), late fees for your bills (which could also hurt your credit and kick other penalties into play as well), or even some sort of scenario where you end up being hassled by the creditors and might even have to deal with bill collectors or other repossession type agencies.
The thing is that no matter who you are or what you end up doing, you do need to get your finances and spending completely under control. If you don’t, then you are just going to end up facing this same problem week after week and month after month, until you finally do get the problem under control. However, if for some reason something has come up that you just didn’t account for, instead of risking higher fees, higher rates, and a huge hassle, then why not look into a payday loan to tide you over for the short term?
Payday loans are basically a quick way to take care of any lapse of cash that you might have. They more or less just give you an advance on your paycheck, just like your parents used to give you an advance on your allowance. Like any company, they do want to make a profit so they will charge you some money to loan you the cash as well, but it’s nothing out of the ordinary as long as you know what you are doing.
Credit cards can really be a pain when you have to pay something but you can’t pay with credit. What if you need to fill out a utility bill, rent, loan payments, or even your credit card payment, but just don’t have the money at this time? The truth of the matter is that a credit card can definitely come in handy for a lot of situations. However, a credit card cannot actually replace cash or having some sort of access to cash in all circumstances. That’s why it’s great to be able to use a payday loan because you actually walk away with real cash in your hands which you can use for anything. It’s real money and it’s your money, you are just getting your hands on it a little bit earlier than you originally had thought.
Another major problem with something like a credit card is that you don’t really become forced to pay it off. In the long run you will end up accruing hundreds or even thousands of dollars in debt, but because it takes so long you will actually not seem to notice the small amounts add up. You will also not be in a situation where you feel compelled to paying off your credit for potentially a long time until it becomes too much debt for you to handle!
A payday loan, however, is one that will organize the whole transaction so that they loan you money now and then will take back what you borrowed as well as a small percentage of the transaction for themselves for the costs of simply doing business. But, they don’t let you string out the payments forever and slowly bleed yourself (and your finances) throughout the long run. It is specifically a painless transaction that will give you the money right up front and you can have cash for whatever it is that you actually need.
It should be noted that if you do use a payday loan and don’t follow the agreements as stated at the time of the completion of the transaction (when they gave you the money up front), then you could wind up having to pay high rates and fees. They need to run a business as well, and the only reason that they are loaning you money in the first place is because they think you are trustworthy. The last thing that you want to do is screw up your credit by not paying back your payday loan when it was agreed upon that you would!
There are a lot of minor hurdles to cross in order to secure a loan, though, and many of those will actually help to ensure that you can afford the loan and that it will make sense for you. The payday loan centers will usually want to know what your employment status is and how much you make in any given paycheck. They don’t want to loan you too much money because they want to be sure that you can pay them back. They also don’t want to give you money too far out in advance, because who knows what can happen in the next 30 days (including the interest rates)? And, while it might not seem necessary, they will probably have some other store specific policies such as checking your residence or checking your credit. They need to run a business and they aren’t just going to loan you money if they think you are about to skip town on them.
Overall, a payday loan can be a very good tool for helping you to have access to some real money in the short term. Like anything else in this world, you will have to pay a small amount for it. But, as long as you end up making the most of the situation at hand and are doing it for good reasons instead of bad, then it’s almost like an investment. Just make sure that you end up getting your spending habits under control in the long run so that this doesn’t happen again, and until then you should be fine for your overall payday loan.