Are Payday Loans Right For You? The Positives, Part I
Let’s face it: Payday loans (cash advances) can be expensive. Used the wrong way, they can be detrimental and cause a continuous cycle of debt that could keep you from getting a leg up financially. However, payday loans can be very helpful if you have an emergency, you’re getting behind on some bills, or you simply have a great opportunity to go on a fun trip on short notice. Let’s look at some of these positive and negative scenarios.
But first, if you know you need a payday loan and you’re simply looking for a reputable source, we have had great feedback from our readers who have used this site, where you can get up to $1,500 wired to you in an hour.
Good uses for payday loans
1. You’re going to pay a premium for getting cash in your bank account fast. That’s to be expected. But is it really that expensive compared to the expense of having negative entries on your credit report? Let’s play out a scenario to illustrate: what if you’re getting ready to refinance your adjustable rate mortgage that has a balloon payment due next year, but you don’t have enough cash to pay your Visa bill this month? A negative entry on your credit report could cost you thousands in the form of points or a higher interest rate when you go to refinance, or you may not be able to refinance at all which could lead to really big problems and potentially foreclosure. And this is happening a lot these days folks. Clearly this is a case where you need to get that Visa billed paid and buy yourself some time to figure out a long term solution to your financial shortfalls.
2. You’re sick or injured and you can’t afford medicine or medical attention. This situation sucks, but you’ve got to take care of yourself. Your health comes first - get the money now and work out the financial issues later. This is the only case where this type of thinking is acceptable!
3. You’re getting back a couple thousand dollars for your tax refund, but you’re broke and Spring Break is next week. Is this frivolous and unwise? Absolutely. I’m not suggesting that this is an example of sound financial decision making. But sometimes you’ve just gotta cut loose and have some fun. If you can use a payday loan to help pay for that unforgettable trip to Cancun without messing up your finances, I say go for it. You only live once. But make darn sure you’re going to get the money to cover it later. Don’t count your chickens before they hatch!
So there are definitely good, responsible uses for paying a premium to have cash in hand now. But there are also some very compelling reasons not to use payday loans.
Click here to read Part II of this article
Written by Jim on April 13th, 2007 with
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